Top questions (and answers) about Merchant cash advance

by Staff

Are merchant cash advances legal?

Yes. They are legal business financing utilized by thousands of firms. Fundshop partners with top MCA providers to provide all your company financial requirements.

Can I return the cash advance early?

Yes. Early repayment is penalty-free. However, it will not save you money. Your factor rate is determined at the commencement of the loan. Even if you repay the debt early, it stays the same.


If your firm has extra capital that may be repaid early, an expansion or purchase may be preferable.

Are cash advances bad for my credit?

A cash merchant advance does not directly damage your credit score, but it might indirectly effect it. Lenders base loan decisions on card payment turnover, company credit rating, length of time in operation, and payback amount your firm can afford. The lender may lightly review your personal credit history, but it shouldn’t damage your score. A rigorous credit check is only requested if the lender doubts your capacity to pay. That may hurt your credit.

Can I obtain one with poor credit?

Yes. Merchant cash advances are dependent on company success and card turnover, therefore operators with negative credit may get one. Merchant cash advances are available to businesses who have been denied alternative finance.


Remember that MCAs are unsecured loans. The lender will offer based on risk. Lower loan amount and higher cost (factor rate) with more risk. Some candidates with poor credit may be rejected by lenders.

Can I get one no-credit check?

Yes. Business credit, card customer receipts, trade and credit history, and capacity to repay are more important to lenders than personal credit. Even though an MCA is unsecured, many lenders will nonetheless do a ‘soft’ credit check. If an applicant’s capacity to fulfill commitments is questioned, a hard credit check may be requested.


Businesses with little trade experience or card payment volume that cannot get a merchant cash advance may be able to get finance from alternative sources.

Can I acquire one without bank statements?

Probably not. Expect to produce financial documents, but lenders will primarily look at your card payments volume and history. Bank statements, filed accounts, balance sheets, and company or tax returns are alternatives. Although lenders have somewhat varied criteria, they all want to detect danger. More information about your company means a more accurate offer.


For solo traders or fledgling enterprises, lenders frequently want bank statements. For limited corporations, they will want your most recent and current year’s accounts. Having a company bank account and balance sheets will help. Personal tax returns may be used to determine business risk if your firm is new or doesn’t have audited accounts.

Can I cancel a merchant cash advance?

Yes. Paying down the advance and cost lets you leave an MCA at any time. There are no penalties for early repayment, but you must pay the initial loan charge in full. Early repayment is not discounted.


Getting a term loan from a new lender, acquiring equity to discharge the MCA, or growing your firm to repay the debt from increasing revenues are all viable options for getting out of a merchant cash advance if you do not have the finances to repay the loan.

Can I receive a merchant cash advance today?

Almost. Some lenders offer within 24 hours. With a good card payments volume, company profitability, and business credit rating, you may obtain an MCA offer and money within a day of applying. Although merchant cash advances are speedier than other loan options, lenders usually need a comprehensive risk evaluation, including contacting your card terminal supplier. Contact Fundshop for fast approval for MCA or if you need small business loans Florida.

May I retain my card machine provider?

You usually can. Most lenders try to cooperate with your provider. Some providers limit lenders. To qualify for the loan, you may need to switch terminal providers.

Am I eligible for a merchant cash advance?

Yes, if your firm takes card payments and meets the lender’s minimal volume.


Vital needs:


  • Minimal card payments
  • Profitability to proof loan repayment
  • Financial documents like audited accounts or bank statements


There are various merchant cash advance companies. It takes time to contact them individually.

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The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.

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