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Merchant Cash Advance

Unlocking business potential : A step-by-step guide on qualifying for a merchant cash advance

Your Simple Guide to Getting a Merchant Cash Advance (MCA)

In the world of business financing, Merchant Cash Advances (MCAs) are a popular choice for small businesses needing money fast. If you're exploring this option, understanding how to qualify is key

Do You Qualify?

Unlike traditional loans that focus heavily on your credit score, MCAs are more interested in how your business is doing right now. If you have a steady flow of credit card sales and can show some income, you're already a strong candidate.

What Paperwork Do You Need?

Applying for an MCA means getting some documents together.

Bank Statements : These show your lender how much money flows in and out of your business.

Card Processing Statements : This proves you have consistent card transactions to repay the advance.

Proof of Ownership : Just to confirm it's your business!.

Consistent Cash Flow : Maintain a healthy financial cushion so you can confidently pay suppliers, meet payroll, and seize time-sensitive opportunities that can propel your business forward.

Factors That Help You Qualify

Merchant Cash Advances (MCAs) are designed to help a wider range of businesses. Lenders will look at

Your Average Monthly Income: The Higher, the Better

Repayment Capacity : Your monthly income gives lenders a picture of your business's overall financial health. A consistent and higher income stream translates to a larger pool of funds from which your MCA repayments will be drawn.

Confidence in Growth : MCAs are often used to fuel growth initiatives. Demonstrating a healthy income proves you have a baseline from which to expand.

Affordability : Lenders want to make sure you're not just scraping by; they need to see that MCA repayments will fit comfortably within your existing budget.

How Long You've Been in Business: Some Experience is Needed

Track Record : While MCAs don't obsess over perfect credit scores, they do want proof that you have some business management experience. A longer time in business demonstrates stability.

Market Understanding : Businesses with at least a few months of operations show they've navigated initial setup hurdles and understand their industry's specific challenges.

Consistency : Even if your profit margins aren't huge yet, showing you’ve been operating for an extended period suggests a level of consistency that's reassuring to lenders.

Steady Card Sales: The Core of How You'll Repay the MCA

Predictability : MCAs are a bit different from traditional loans because your repayment amounts fluctuate based on sales. But, lenders still want predictability. A consistent pattern of card sales, even with seasonal dips, indicates you can handle this flexible structure.

Direct Alignment : Your ability to repay the MCA is tied directly to sales made with the same payment method you're already using. This reduces the risk for lenders.

Growth Indicator : If you have a recent upward trend in card sales, that's even better! It shows that your business is attracting customers and likely poised for further expansion.

Merchant Cash Advance

MCA Benefits for Small Businesses

Less Focus on Past Credit Mistakes

A Second Chance : Past financial missteps, whether due to personal or business circumstances, can make getting a traditional loan nearly impossible. MCAs look primarily at your present performance. A bad credit score won't automatically eliminate you from consideration.

Emphasis on Potential : Lenders focus on how your business is performing now and your potential for future sales growth. This levels the playing field for businesses that may have had setbacks but are in a position to rebound strongly.

Empowerment : This shift in focus puts control back into the hands of business owners who are ready to prove themselves. It's about using your present success to create a better financial future, not being forever defined by past mistakes.

Easier Qualification

Simplified Requirements : Unlike traditional loans that can involve stacks of paperwork and in-depth financial analysis, MCA applications focus on the core metrics of your business: sales volume and stability.

Streamlined Process : Because the repayment mechanism is built into your existing card processing, there's less risk for the lender. This translates into a faster approval process, which can be a lifesaver if you need funding urgently.

Accessibility : Even businesses with less-than-perfect financials have a greater chance of qualifying compared to the rigid standards of many bank loans. This opens up options for those often underserved by traditional lending.

Flexible for Growing Businesses

Adaptability to Your Growth : MCA repayments, tied to sales, automatically rise and fall with your business's income. This built-in scaling factor means you don't have to renegotiate loans as you expand.

Fueling Strategic Moments : When a sudden opportunity for growth arises (bulk inventory discounts, a new partnership, etc.) MCAs let you act fast. Waiting for weeks for traditional loan approval can kill those vital opportunities.

An Alternative Path : Banks are often cautious about lending to businesses still building a long, stable track record. MCAs are designed to fill that gap, offering a way to grow and, in turn, strengthening your future chances for traditional lines of credit or other financing options.

Frequently Asked Questions (FAQ's) ?

You get an upfront sum of money and repay it with a small percentage of your daily card sales, rather than fixed monthly payments.
No! MCAs are unsecured, meaning you don't risk losing assets if you run into temporary repayment trouble.
They use something called a 'factor rate'. It's a bit different from traditional interest, so make sure you fully understand the cost before signing.

Pros : Fast approval, flexible repayments, often easier to get than a bank loan

Cons : Can be more expensive overall, daily payments might be tough if sales fluctuate a lot.

Alternatives include regular business loans (if you have strong credit), lines of credit (borrow as needed), or seeking loans backed by the Small Business Administration (SBA).


Arcarius Funding understands the specific challenges faced by small businesses. That's why they go beyond a one-size-fits-all approach to MCAs. Whether you're aiming to rebound from past financial hurdles, capitalize on a time-sensitive opportunity, or need flexible funding that accommodates your dynamic growth cycle, Arcarius Funding tailors MCA solutions to meet your unique needs. Their emphasis on your current performance and future potential opens doors that traditional lenders may close.