4 Best Merchant Cash Advance Companies of 2026

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4 Best Merchant Cash Advance Companies of 2026

A merchant cash advance (MCA) allows a business to access funds quickly and repay them using a portion of future sales. This kind of financing can be critical for small businesses on tight margins, but MCAs can have high rates and costly fees.

CNBC Select has picked the best merchant cash advance companies for a variety of needs, including fast funding, poor credit and large advances. For more on how we made our selections, see our methodology.

Best merchant cash advances

Find the right business checking account

Best for flexible funding: Credibly

Credibly

  • Types of financing

    Long-term loans, working capital loans, business line of credit and merchant cash advance

  • Better Business Bureau (BBB) rating

  • Amounts

  • Terms

  • Minimum credit score needed

  • Minimum requirements

    Must have been in business for at least six months and have average monthly revenue of at least $15,000

Pros

  • Offers multiple options for small business financing
  • Can get approved within four hours
  • Low minimum credit score requirement
  • Provides loan amounts of up to $400,000
  • Funds deposited as soon as the same business day
  • Considers overall business health as an approval criteria

Cons

  • Requires an average monthly revenue of at least $15,000

Best for large advances: Libertas Funding

Libertas Funding

Business term loans are issued by WebBank

  • Types of financing

    Term loans, merchant cash advance

  • Better Business Bureau (BBB) rating

  • Amounts

  • Terms

  • Minimum credit score needed

    625 for term loans, 630 for merchant cash advance

  • Minimum requirements

    Must be a U.S. citizen or permanent resident with a U.S.-based business, minimum 2 years in business, 625 personal FICO score, $100,000 in average monthly deposits for term loans; $150,000 in monthly revenue and a 650 FICO score for merchant cash advance

Pros

  • Same-day financing available
  • No prepayment penalties
  • Provides financing of up to $5 million

Cons

  • High eligibility requirements

Best for comparison shopping: Lendio

Lendio

  • Types of financing

    Term loans, business acquisition loan, equipment financing, business line of credit, SBA loans, business cash advance, commercial mortgage, startup loan

  • Better Business Bureau (BBB) rating

  • Amounts

  • Terms

    Vary by loan type and lender

  • Minimum credit score needed

    Vary by loan type and lender

  • Minimum requirements

    Vary by loan type and lender

Pros

  • Wide selection of loan types
  • Ability to receive and compare multiple offers

Cons

  • Varying times to receive funds, depending on the loan type

Best for bad credit: Fora Financial

Fora Financial

  • Types of financing

    Small business loan, revenue advance

  • Better Business Bureau (BBB) rating

  • Amounts

  • Terms

  • Minimum credit score needed

  • Minimum requirements

    Be in business for at least six months; have $15,000 per month in revenue; no open bankruptcies

Pros

  • Offers higher funding amount compared to other lenders
  • Considers lower credit scores
  • Approval and funding in 24 to 48 hours, according to the lender’s website
  • Borrowers can increase loan amount after paying back at least 60% of the original loan amount
  • Offers a prepayment discount

Cons

  • Short loan term of just 15 months

What is a merchant cash advance?

A form of revenue-based financing, a merchant cash advance i(MCA) involves a lump sum of money lent in exchange for a portion of a business’s future sales revenue. While often small cash infusions, MCAs can be for millions of dollars.

The advance is viewed as a sale of future revenue rather than a traditional loan, so it’s easier to get approved for an MCA and collateral isn’t required. Businesses can often get funded in as little as 24 hours.

Merchant cash advances are often used by businesses with high credit card sales that need fast capital.

How a merchant cash advance works

Rather than an interest rate, an MCA comes with a factor rate, expressed as a decimal (usually between 1.1 and 1.5). Your total amount owed equals the advance multiplied by the factor rate. If you get an advance of $30,000 with a factor rate of 1.5, you will need to repay $45,000 (plus any fees).

Payments for MCAs are made daily or weekly, rather than monthly, and term lengths are shorter — often 3 to 12 months. Payments are set up automatically, usually as a percentage of credit card/debit sales.

While traditional loans may come with a prepayment penalty, many merchant cash advance companies offer a discount for early payment.

Because the cost of borrowing is so high, a merchant cash advance is a risky funding option: While you’re charged a factor rate, the effective annual percentage rate (APR) can be 50%, 100% or even more. There are also origination, funding, and administrative fees, which are deducted upfront.

The MCA market is also less regulated, leaving some borrowers vulnerable to predatory lenders.

Merchant cash advance pros and cons

Before you apply for a merchant cash advance, consider the drawbacks and advantages.

Pros

  • Funds are usually available in 24 hours
  • Lenient approval requirements make it a good option if you have bad credit
  • Repayment usually based on a percentage of daily transactions rather than a fixed amount

Cons

  • Shorter repayment terms, usually just 3 to 12 months
  • Borrowers may need to meet high revenue requirements
  • Factor rate for advance can be very costly
  • The MCA market is less regulated

FAQs

What’s the difference between a merchant cash advance and a business loan?

A merchant cash advance and a loan both provide a business with a lump sum of capital. But rather than flat monthly installments, repayment for an MCA is based on a percentage of future sales, typically on a daily or weekly basis. Because the transaction is viewed as a sale of future revenue, an MCA won’t directly impact your credit score.

MCAs are easier to get approved for and are usually funded much faster, but the cost of borrowing is significantly higher.

What is a factor rate?

Rather than an interest rate, MCA companies assign a factor rate that’s fixed and expressed as a decimal (e.g., 1.2). To determine the total balance owed, the initial loan amount is multiplied by the factor rate.

Can I refinance a merchant cash advance?

Yes, you can refinance an MCA to secure lower daily payments or to extend your repayment terms. In 2025, the U.S. Small Business Administration stopped allowing SBA loans to refinance MCAs. But you can still get a business term loan or line of credit from a bank, fintech company, or non-bank lender. Some private lenders specialize in MCA debt consolidation, which gives borrowers predictable monthly payments for terms of two to five years.

If you’ve paid off at least 50% of your current MCA, you may also be able to refinance with another advance.

What happens if you default on a merchant cash advance?

If a business misses enough payments, the lender can sue for repayment and seize assets to recoup its investment.

Why trust CNBC Select?

Our methodology

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.


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