Phone:
(844) 462-4730
Business Hours
Mon-Fri: 9AM - 6PM
Address
97 Newkirk Street, 3rd Floor
Jersey City, NJ 07306
Phone:
(844) 462-4730
Business Hours
Mon-Fri: 9AM - 6PM
Address
97 Newkirk Street, 3rd Floor
Jersey City, NJ 07306
Unlock fast capital with a Merchant Cash Advance—leverage future sales for immediate funding with minimal paperwork!
Over the past few years, Merchant Cash Advances (MCAs) also known as Revenue Based Financing, have emerged as a popular financing option for small business owners like you, seeking quick access to funds. Unlike traditional loans, MCAs allow you to receive cash upfront in exchange for a percentage of your future sales, which can provide immediate capital for your operational needs and offers flexible repayment terms based on your sales. However, be cautious, as the costs can be significantly higher compared to conventional financing, potentially leading to difficult repayment terms. This will guide you through the advantages, risks, and important insights you need to make an informed decision about MCAs.
Against conventional repayment methods, revenue based funding deducts a predetermined percentage of your daily credit card sales until the advance is fully repaid. This means that during slower sales periods, your repayments will decrease, providing you with some flexibility. However, this type of financing often comes with higher fees than standard loans, which can lead to increased financial strain. You will need to regularly assess your sales and cash flow to ensure that the advance remains manageable.
At the core of an revenue based transaction, the provider evaluates your credit card sales history to determine the amount you are eligible to receive. You’ll then receive a cash sum upfront, which you must repay with a percentage of your daily sales. While this flexibility can be beneficial, especially for seasonal businesses, it’s vital to note that MCAs can lead to significant repayment amounts that may escalate quickly. Thus, it’s crucial for you to fully understand your sales projections and the potential risks before committing to this financial option.
Merchant cash advance (MCA) repayments are typically structured in two different ways:
Percentage of Credit/Debit Card Sales
This is the most common repayment structure, where the MCA provider takes a daily (or weekly) percentage of your credit and debit card sales until the loan is fully repaid. Unlike traditional business loans, MCAs don’t have fixed repayment terms. The repayment period depends on your sales, and it can range from three to 18 months. The higher your card sales, the faster you’ll pay off the advance.
Fixed Withdrawals from Your Bank Account
In this setup, the revenue based financing provider withdraws fixed amounts directly from your business bank account, typically on a daily or weekly basis. The withdrawal amount is determined by an estimate of your monthly revenue, not the volume of your sales. This structure provides more predictability, allowing you to know exactly how long it will take to pay back the advance, making it ideal for businesses that don’t rely heavily on credit or debit card transactions.
All funding options come with their own set of pros and cons. Understanding these differences can help you determine which avenue suits your business needs best. Below is a comparative overview of Merchant Cash Advances alongside other popular funding sources.
Funding Type | Pros and Cons |
MCA Funding | Same day funding available, flexible payments, but higher costs. |
Traditional Bank Loans | Lower interest rates; longer approval times, strict qualifications. |
Alternative Financing Solutions | Accessible for diverse business types; may have variable rates. |
💡 Pro Tip: Not all merchant cash advances are created equal. If you want the inside scoop on how to negotiate better terms and avoid the common traps other funders won’t tell you about, check out our insider’s guide to revenue-based financing.
Bank loans, typically SBA Loans, offer you lower interest rates compared to merchant cash advances. However, you may face stringent qualification criteria, making access challenging for some small businesses. Approval can also take several weeks, which is less than ideal when you need cash quickly.
Alternative financing solutions provide diverse options that can be more accessible than traditional loans. You can explore choices such as peer-to-peer lending, invoice financing, and crowdfunding, which may offer more flexible repayment terms.
It’s important to analyze these options thoroughly. While alternative financing solutions may allow you to secure funds faster, you could encounter higher interest rates and less favorable terms in some scenarios. Make sure to consider your business’s financial health and need for immediate cash against potential long-term costs. Evaluating all factors will help you make a more informed decision suited to your needs.
Instead of charging a traditional interest rate, revenue based financing providers use a factor rate, which generally ranges from 1.1 to 1.5. This rate is determined by an evaluation of your business, considering factors like your industry, financial stability, years in operation, credit card sales, and personal credit score.
If your business is seen as a higher risk, you may face a higher factor rate and consequently higher fees. Keep in mind that the factor rate doesn’t cover additional charges like administration or underwriting fees, which will increase the overall cost of your funding.
To determine the total repayment cost, multiply the amount you receive by the factor rate. For example, if you’re approved for $50,000 with a 1.2 factor rate, you’ll repay $60,000, which means $10,000 in fees.
To get a more accurate understanding of your costs, you should convert the factor rate and any additional fees into an APR. This will give you a clearer idea of the total cost of the advance and the length of time it will take to fully repay.
💡 Pro Tip: Before signing any offer, use our MCA Calculator to break down the real cost—APR, daily payments, and total payback—so you never overpay again.
To ensure you properly select one of many merchant cash advance companies, it’s important to review their reputation, terms, and customer service. Evaluate their flexibility in repayment options and whether they align with your business’s cash flow patterns. Additionally, consider the overall cost of the advance, including the factor rate, to understand how much you will ultimately repay.
Consider the following key factors when choosing your provider:
Recognizing these factors will lead you to a provider that suits your business needs.
💡 Pro Tip: Some funders file a blanket UCC-1 Lien on your entire business—which can restrict future financing or put your assets at risk. Always ask if the funding includes a lien, and whether it’s limited or all-encompassing.
For maximizing your chances of a successful partnership, ask potential lenders detailed questions regarding their services and terms. It’s key to assess not only their offerings but also their willingness to clarify any ambiguities.
Factors to inquire about include interest rates, repayment terms, if they file UCC liens and any additional closing costs. Additionally, verify their funding timeline to meet urgent needs. Don’t hesitate to probe into their funding process and durability in your sector. Addressing these aspects can help you avoid pitfalls and ensure you’re entering into a transparent and beneficial agreement.
Not sure if an MCA is the right fit? Explore other funding options through our business funding solutions page.
Submit a simple application with basic business information, including your sales history, industry, and financials.
The MCA company will review your application and assess your business’s sales performance. If approved, you’ll receive an offer detailing the amount of funding and the factor rate.
Once you accept the offer, funds are typically deposited directly into your business account within 24 to 48 hours. Repayments will begin based on the agreed-upon structure, either as a percentage of credit card sales or fixed withdrawals from your bank account.
With AMP Advance offering MCAs up to $5,000,000, it’s fair to say this type of funding is best suited for smaller businesses needing quick capital. From restaurants and delivery services to IT and communication companies, we got you covered!
Stephanie Whitworth2025-07-03Trustindex verifies that the original source of the review is Google. AMP helped me secure a business line of credit that was a game-changer for my seasonal tourism business. During the slow months, it gave me the cash flow I needed to cover payroll and prep for peak season—smooth, fast, and exactly what I needed to stay afloat. Brian Dale2025-07-02Trustindex verifies that the original source of the review is Google. John at AMP got creative and made it happen. He stacked multiple funding options to get me the capital I needed fast. Smart, responsive, and results-driven. Highly recommend! George Lopez2025-06-03Trustindex verifies that the original source of the review is Google. John and his team(AMP Advance) are very professional and knowledgeable. Im a restuarant owner in California, having access to quick capital is crucial to us restaurant owners That's what Amp Advance has been able to do for us. Quick turn around, competive pricing, not to mention their customer service is second to none. I would highly recommend giving John and his team an opportunity to earn your business. Thanks Amp Adavnce, Jak Dawson2025-05-22Trustindex verifies that the original source of the review is Google. Amp Advance did great with their customer service, understanding my business, and quick loan services. Thanks a lot for the help with my Florida Business Loan. Francisco Montero Naranjo2025-04-22Trustindex verifies that the original source of the review is Google. Glad I called AMP, they came in clutch for business funding for my Irvine, CA business when my biggest client had payment issue to help me cover my payroll with a business line of credit. Gloria Ortiz2025-04-09Trustindex verifies that the original source of the review is Google. You've guys helped me hit my funding goals so I can grow my business from start up to where I am today! Your team took the time and helped me a lot. Thanks! Christiaan2025-04-08Trustindex verifies that the original source of the review is Google. I used AMP to secure equipment financing for network servers and storage networks. The process was smooth, and they helped me get exactly what I needed, without tying up my cash flow. Jocelyn Farrar2025-04-06Trustindex verifies that the original source of the review is Google. Carlos got me funded for a business line of credit where my bank declined me! He’s my guy when I need business funding I would highly recommend Travis Messman2025-04-01Trustindex verifies that the original source of the review is Google. Matt and the team at AMP helped me consolidate my business debt into a single loan with an affordable payment, saving me 40% on cash flow. Nicole Olar2025-03-18Trustindex verifies that the original source of the review is Google. John and the team at AMP were absolute lifesavers! They listened to my needs and made the process of securing a business line of credit easy and educational!Google rating score: 5.0 of 5, based on 46 reviews
Revenue based financing are generally beneficial for small to medium-sized businesses that may have difficulty securing traditional financing due to low credit scores or lack of collateral.
They are particularly suitable for businesses with steady sales and those that require quick access to cash for urgent expenses, inventory purchases, or unexpected challenges.
es, it is possible for a business to take out multiple MCAs at once, although this may depend on the lender’s policies and the business’s financial stability. However, taking on multiple advances can lead to significant financial strain, as businesses will be required to allocate a portion of their revenues toward multiple repayments, potentially creating cash flow challenges.
Before pursuing additional advances, it’s advisable for a business owner to carefully consider their overall finances.
Yes! Often times funding can be done in as little as 2 hours.
Access to flexible repayment options is one of the standout features of merchant cash advances. This means that your repayments fluctuate based on your daily credit card sales, allowing you to pay back at a rate that aligns with your cash flow. This short term financing adaptability ensures that when business is slow, your repayments will adjust, alleviating financial pressure which is great for seasonal businesses.
Even with a less-than-ideal credit score, you can secure a revenue advance if your business has a consistent revenue history. These financing options are tailored for business owners who may struggle with credit but can demonstrate reliable cash flow.
No, collateral is not required for a Revenue Based Advance. Instead of relying on assets like property or equipment, providers base the approval on your business’s revenue, specifically your credit card sales or overall cash flow. This makes it an ideal option for businesses that may not have valuable assets to pledge but have consistent sales or revenue.
No, a Merchant Cash Advance (MCA) is not technically a loan. It’s a financing arrangement where a business sells a portion of its future sales in exchange for upfront capital. Repayments are typically made daily or weekly based on a percentage of your revenue, not through fixed loan installments.
Defaulting on an MCA can trigger aggressive collections, legal action, and even frozen business accounts—especially if a personal guarantee or confession of judgment is involved. It can also damage your business credit and impact future funding options.
Worried about falling behind on payments? Learn what happens if you default on a merchant cash advance and how to protect your business.
Qualifying is especially easy for an MCA:
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Address
97 Newkirk Street, 3rd Floor
Jersey City, NJ 07306