What is merchant cash advance?
A merchant cash advance (MCA) provides a lump sum in exchange for a fixed percentage of your future credit and debit card sales. Remittances are collected automatically each day or week, so there is no invoice to pay and no risk of missing a payment.
MCAs are the fastest form of business funding available — approvals in hours and funding the same day are common. They are also among the most accessible, with credit scores as low as 500 accepted when card volume is consistent.
HL Hunt Funding helps you compare MCA offers transparently. We show the factor rate, holdback percentage, estimated payback period, and total cost so you can decide whether an advance makes sense versus a revenue-based or term option.
How merchant cash advance works
- 1Pre-qualify
Share card-processing volume and bank deposits. No credit inquiry.
- 2Receive offers
Compare advance amount, factor rate, and holdback percentage.
- 3Sign and fund
E-sign and receive a wire the same business day.
- 4Automatic remittance
A fixed percentage of card sales is remitted until the advance is satisfied.
Best for
- High card-volume retail and restaurants
- Urgent capital needs
- Owners with credit challenges
- Businesses declined by banks
Pros and cons
Advantages
- Fastest funding available
- Credit score is not the primary factor
- No collateral
- Remittances fall when sales fall
Considerations
- Highest cost of capital among business funding products
- Daily remittances reduce cash flow
- Stacking multiple advances is risky
Requirements to qualify
- 3+ months in business
- $10,000+ monthly deposits or card sales
- Business bank account
Requirements vary by funder. The fastest way to know exactly where you stand is to pre-qualify in two minutes — it is free and there is no credit inquiry.