Find the best business loan rates (2021)

Merchant Cash Advance Companies: Here Are 6 of the Best (Plus Alternatives)

By Willi Vision Reviewed By Mike Lucas
By Willi Vision
By Willi Vision Reviewed By Mike Lucas

As a business owner, you don’t have time to hunt for the best deals from merchant cash advance companies. You need the money, and you usually need it fast. 

Learn about the crucial terms, factor rates (interest costs) and how to qualify with merchant cash advance companies to get a loan.

What Is a Merchant Cash Advance?

A merchant cash advance (MCA is a lump-sum payment made against the collateral of receivables or credit card transactions.

A stack of bills parachutes down from the sky.

What Are Merchant Cash Advance Companies?

MCA companies are specialized lenders. They may use a factor rate as a way to express the interest fee charged for a loan. 

  • For Example

    An MCA with a 12% interest fee has a factor rate of 1.12. If you borrow a dollar, you pay back a dollar plus 12 cents. A factor rate is not the same as the annual percentage rate (APR) because the loan may be for less than 1 year. If you pay 12% interest as a factor fee for a loan of three months, this is a 48% APR.

MCA lenders can help business owners with bad credit (a score of 500 to 560). If your company qualifies, you can get a loan of up to $5 million. Some MCA companies specialize in startup companies with only 3 months of operations. Others offer a highly competitive lending rate for large, well-established companies.

The good news is that despite the pandemic, the Federal Reserve 2021 Small Business Credit Summary reports 84% of small businesses that applied for an MCA during the past year were approved. National Business Capital & Services, a financial marketplace company,  estimates the marketplace for MCAs is $5 to $10 billion a year. These loans are available for many businesses.

You can get a quick overview of what is available in this table:

This chart spells out some details of 6 merchant cash advance companies.

The lenders are organized in the categories of MCA lenders, companies offering business credit lines of credit, popular merchant systems, and lending marketplaces.

Check with the lenders to learn more about their interest rates and keep this in mind: Rates are subject to change without notice and — not all borrowers qualify for the lowest rate.

Top MCA Lenders

MCA lenders usually provide funding quickly in a matter of hours or a few days. Compared to dealing with a bank for a loan, this process typically is much faster. However, the loan rates are much higher than traditional bank financing.

Here are the top 6 MCA lenders:

1. Can Capital

Can Capital likes to establish a permanent lending relationship with a business. With that in mind, the firm provides an easy way to open a second MCA after the first one is fully paid.

How Can Capital Works

Can Capital provides businesses with an advance of working capital by purchasing the business’s future payment card receivables at a discount. The business makes automated ACH daily remittances to Can Capital based on a % of its actual payment card receivables.

Apply online for a credit review (does not impact credit score) to receive options. Review options. Lock-in an option by submitting final documents and e-sign the approved MCA contract.

Can Capital Terms

  • $595 Administrative Fee
  • Loan Amount: $2,500 to $250,000
  • Loan Term: 6 to 18 months
  • Time for Funding: As few as 2 business days

2. Rapid Finance

Rapid Finance provides MCAs for business owners that have a personal credit score of 550 or higher. Loans are provided to startups that have been in business for at least 3 months and have a minimum of $5,000 a month in bank card receivables.

How Rapid Finance Works

Business owners apply online. Each owner is assigned a dedicated business advisor who helps them with the financing process. Once a business is approved for the system, there is a streamlined process if the business needs additional financing.

Rapid Finance Terms

  • Amount: $5,000-$500,000
  • Loan Term: 30, 60, or 90 days based on when the invoices are due to be paid
  • Time for Funding: As fast as 24 hours after documents are submitted

3. National Business Capital

National Business Capital provides MCAs up to $5 million. The firm doesn’t have a minimum credit score requirement. They require a business to have operated for at least 6 months with at least $120,000 in annual gross sales.

How National Business Capital Works

National Business Capital buys receivables at a discount and pays 80% to 95% of their value. The firm set up a pre-approved process allowing business owners to sell as many receivable invoices as they like. 

utilizing future credit card sales

National Business Capital Terms

  • Loan Amount: $10,000 to $5 million
  • Time for Funding: 1-3 days

4. Reliant Funding

Reliant provides MCAs to businesses in certain industries in operation for at least 6 months with $10,000 in monthly bank card sales. There is no minimum credit score required for the owner. Eligible industries are auto repair, construction, transportation, franchises, health care, retail, restaurants and bars.

How Reliant Funding Works

Apply online, which is fast and easy. Get approval in a few hours. Funding arrives in your business bank account on the next banking day after the documents are submitted, and the loan is approved.

Reliant Funding Terms

  • Been in business for at least 6 months.
  • Generate at least $10,000 in sales per month.
  • The business has no open bankruptcies.
  • Time for Funding: Typically the next day after approval.

5. Kalamata Capital Group

Kalamata Capital Group offers an attractive factor rate to businesses that have operated for at least 1 year and have at least $250,000 in annual revenue. The owner must have a credit score of 500 or better. Eligible industries are retail, wholesale, ecommerce, medical, dental, pharmaceutical, trucking, construction, logistics, restaurants, hotels and franchises.

How Kalamata Capital Group Works

Fill out a contact form online to get a callback. The company has 3 locations in Bethesda, Md., New York and Miami. Get approval in about 3 hours.

Kalamata Capital Group Terms

  • Loan Amount: up to $750,000
  • Loan Term: 6 to 12 months
  • Time for Funding: 24 hours after approval

6. Libertas Funding

Libertas Funding offers MCAs of up to $1 million for businesses in operation for at least 6 months with annual revenue of at least $150,000. The owner must have a credit score of at least 550.

How Libertas Funding Works

Apply online easily and quickly. Get an approval decision within 24 hours.

Libertas Funding Terms

  • Loan Amount: $25,500 to $2 million
  • Loan Term: 3 to 12 months
  • Time for Funding: 24 to 48 hours

MCA Alternative: Business Credit Lines

Business credit lines have terms that differ from an MCA. However, the funds can be useful to a business similarly. Depending on the cost and terms, a credit line may be more suitable for your business.

Here are the lenders that offer business credit lines:


Fundbox specializes in working with business owners who have bad credit. A credit score of 500 is enough to qualify. 

A Fundbox loan is a line of credit that is technically different from an MCA. A line of credit is granted based on a direct financial analysis of the actual business activity and does not require collateral or credit insurance.


Kabbage requires a minimum credit score of 560. The business must be at least 1 year old and have annual revenue of $50,000. 

You must have a business checking account or online payment platforms such as PayPal or QuickBooks.

A hand holds a sack of cash.

MCA Alternative: Merchant Systems

Major merchant systems that process card transactions offer funding programs:


PayPal offers its merchant customers a working capital advance based on their PayPal sales history. A business must have processed at least $15,000 of sales through a PayPal business account ($20,000 for a Premier account) and used PayPal for business for at least 3 months.


Square makes offers to lend to merchants using its system based on a review of their merchant activity. There is no way to apply for a loan. The system chooses those who qualify.


Stripe gives a cash advance to certain merchants who use the Stripe system for payment processing.

Also Worth Considering: Lending Marketplaces

Other alternatives to merchant cash advance companies can be found in online lending marketplaces such as Fast Capital 360, which may have lenders offering better rates and terms. 

Marketplaces are where multiple lenders compete for your loan business. With a single application on Fast Capital 360, get multiple quotes for a MCA, business credit line, and other financing options.

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