What it is
A merchant cash advance is a category of business funding generally repaid as a percentage of future card sales or daily/weekly bank deposits, rather than on a fixed monthly schedule. Cost is typically expressed as a factor rate rather than an APR. Structures, holdback rates, and total cost vary by provider.
Who it may be suitable for
- Businesses with strong daily card or deposit volume
- Retail, restaurants, e-commerce, and service businesses
- Owners seeking faster review timelines
- Owners who prefer repayment that flexes with sales
Common provider review factors
- Average daily or monthly card sales
- Business bank deposit history
- Time in business
- Industry and merchant processor
- Credit profile
Important tradeoffs and considerations
- Often higher total cost than traditional loans
- Repayment may occur daily or weekly via card-sale holdback
- Cost is typically expressed as a factor rate, not APR
- Approval, rates, and amounts are determined solely by the third-party provider
Important disclosure
FUNDMOX is a business funding marketplace, not a lender, bank, or financial institution. FUNDMOX does not make credit decisions, evaluate eligibility, act as a credit broker, or guarantee approval. Final funding options, rates, fees, and terms are determined by third-party providers. Not all funding products are available in all states.