Call Us & Get Prequalified For Your Loan
Call Us & Get Prequalified For Your Loan
“When other small business lenders say no, First Capital Financing says YES.” – Jeremiah J.
A business cash advance is a lump sum of working capital that a business repays from its future revenue. Instead of an interest rate, the cost is a fixed factor rate agreed upfront. Repayment comes out automatically, either as a fixed daily or weekly ACH payment or as a small percentage of daily card sales.
Because approval is based mainly on your business’s deposits and sales, a cash advance is often easier to qualify for than a bank loan. It’s a popular option for businesses with less-than-perfect credit, limited time in business or no collateral to offer.
A business cash advance has three numbers you should understand before you sign: the advance amount, the factor rate and the repayment schedule. Here’s how each one works.
Instead of interest that grows over time, a cash advance uses a factor rate, usually between 1.15 and 1.49. Multiply your advance by the factor rate to get your total payback. That number is fixed from day one, so you always know exactly what you'll repay.
With an ACH cash advance, you repay a fixed amount each business day or week straight from your bank account. With a card-based merchant cash advance, a set percentage of your daily card sales (called the holdback, typically 10% to 20%) goes toward repayment until the balance is paid.
ACH cash advance | Card-split cash advance | |
|---|---|---|
Advance amount | $50,000 | $50,000 |
Factor rate | 1.35 | 1.35 |
Total payback | $67,500 | $67,500 |
How it’s collected | About $357 per business day | 15% of daily card sales |
On a $2,000 sales day | $357 | $300 |
On a $1,000 sales day | $357 | $150 |
Estimated payoff | About 9 months | Varies with sales |
Example for illustration only. Your actual factor rate, amount and term depend on your revenue, time in business and credit profile.
Once approved, funds are deposited directly into your business bank account, often within 24 to 48 hours. Many businesses qualify to renew once they’ve paid down a portion of their balance, which gives you a reliable source of working capital as you grow.
Yes, you can get a business cash advance with bad credit. Banks lean heavily on credit scores, but cash advance underwriting focuses on how much money moves through your business each month. At First Capital, we work with credit scores as low as 500.
We typically want to see at least $8,000 in gross monthly revenue, based on your last 4 to 6 months of bank statements.
Fewer overdrafts and negative days mean stronger offers.
Businesses open as little as 4 months can qualify.
Steady, frequent deposits show consistent cash flow.
We review any current cash advance balances to make sure a new payment fits your cash flow.
Keep your account balance positive for a few months before you apply, avoid overdrafts and run all business revenue through one business bank account. Applying for an amount that fits your monthly deposits also improves your approval odds and your factor rate.
Bad credit can mean a higher factor rate, so we’ll walk you through your total payback before you accept any offer. Prequalify free to see what your business qualifies for, with no impact to your credit.
First Capital offers two business cash advance programs. The right one depends on how your business gets paid.
ACH Cash Advance (ACH MCA) | Merchant Cash Advance (Card Split) | |
|---|---|---|
Best for | Businesses paid by check, ACH or cash | Businesses with steady credit card sales |
What you need | A business bank account | A merchant account that processes card sales |
Based on | Average monthly bank deposits (4 to 6 months of statements) | Average monthly card sales (3 to 6 months of statements) |
How you repay | Fixed daily or weekly ACH payment | A percentage of daily card sales |
Payments on slow days | Stay the same | Go down with your sales |
Tax returns required | No | No |
Collateral required | No | No |
The ACH MCA loan is a great alternative to your traditional bank loans. The qualifications and turnaround time is significantly faster and easier than obtaining a loan from your bank. This type of financing does not require your company to have a merchant account and your company will not need to process credit card payments to qualify for this type of loan. However, it is necessary to have a business bank account because the qualification process will be based on your average monthly deposits.
How ACH MCA’s work:
The qualifications for our ACH MCA loans will be based on your average monthly deposits in your business bank account(s). We typically will need to see your last 4 to 6 months bank statements, and from there we’ll get the monthly average. Not only do we look at your gross deposits, but we also look at the total number of deposits, insufficient funds, and if you had any negative balance days throughout the month. The strength of the business is based on your cash flow, so it’s very important to represent your strength by showing good daily balances and no insufficient funds.
ACH MCA Benefits
• No Tax Returns Required
• Less-than-Perfect Credit
• No Collateral, No Real Estate, No Assets Required
This is the traditional MCA program, which is also known as a “business cash advance” and does not require tax returns to qualify or collateral to qualify. This does require your company to have a merchant account that is processing credit card transactions. This type of financing is perfect for restaurants, retail stores, service providers, and any other type of business that is taking credit cards as the main form of payment. This is based on your company’s future credit card sales, and the advance will be based on your previous monthly averages. So. in essence, this is not really a loan but more of a cash advance in the exchange of a percentage of your future credit card sales.
How MCA’s work:
The qualifications are based on your past credit card transactions. We will take anywhere from your last 3 to 6 months’ total monthly average to get an idea of the maximum amount you qualify for. This will give us an idea of what to expect in your future credit card sales. The repayment plan for this type of funding is based on your daily credit card transactions, and there will be a percentage of the sales that will go towards paying down your advance (loan). So, this provides a great method of repaying the debt, because if your business had a great day in credit card sales, the payment would be higher and the debt would be paid down faster. Then on the other end, if you had a slower day in credit card sales, your payments would be lower. This is a great solution for businesses that might have fluctuating sales day today. You won’t be burdened with a fixed higher payment if you have a slow day in sales. But with the ACH MCA, you would have a fixed payment, and even if you had a slower day you would still be responsible for that fixed payment.
MCA Benefits
• No Tax Returns Required
• Less-than-Perfect Credit
• Repayment Plan is Based Off Your Cash Flow
Applying for a business cash advance takes minimal paperwork. No tax returns, business plans or financial statements are required. Here’s what to have ready:
If you’re searching for no-doc business funding, a cash advance is about as close as it gets. Your bank statements do most of the work, so you can skip the stack of financial documents a bank would ask for.
Fill out our short online application or call 888-565-6692. Checking your options won't affect your credit score.
A funding specialist walks you through your advance amount, factor rate, total payback and payment schedule. No hidden fees, no pressure.
Sign your agreement and receive funds in your business bank account, often within 24 to 48 hours.
Testimonials
What Our Customers Say
Is a business cash advance a loan? Not exactly. A merchant cash advance is a purchase of a portion of your future revenue, repaid from your sales or bank deposits. An ACH cash advance works similarly but with fixed daily or weekly payments. Neither uses a traditional interest rate.
Can I get a business cash advance with bad credit? Yes. Approval is based mainly on your monthly revenue and bank activity, not your credit score. First Capital works with credit scores as low as 500.
Does a business cash advance affect my credit score? Prequalifying won’t affect your credit score. Most cash advance payments aren’t reported to the business credit bureaus, but defaulting on an advance can still lead to collections that hurt your credit.
How fast can I get a business cash advance? Most applicants get a decision within 24 hours. Once you sign, funds are often deposited within 24 to 48 hours.
Is a business cash advance unsecured? Yes. You don’t need to pledge real estate, equipment or other assets. Most providers do require a personal guarantee from the business owner.
How much can I get? Advances range from $5,000 to $2 million. Your amount is based mainly on your average monthly revenue, typically up to about 1 to 1.5 times one month’s deposits.
Can I pay off a business cash advance early? Because the total payback is fixed, paying early doesn’t always lower your cost. Some programs offer an early payoff discount, so ask your funding specialist when you review your offer.
Can I get a second business cash advance? Many businesses qualify to renew once they’ve paid down a portion of their current balance. Renewals often come with better terms as you build a payment history.
Can a startup get a business cash advance? You’ll need at least 4 months of business revenue to qualify. If you’re just starting out, our equipment financing programs accept startups with no minimum time in business.
Same Day Loan Approval
