Merchant Cash Advances

What it is

A merchant cash advance, or MCA, is not a traditional loan. It is an advance against your future revenue. The funding company gives you cash up front, and you repay it through a small, regular remittance—often daily or weekly—until the advance is paid back.

Instead of an interest rate, an MCA uses a factor rate. For example, a factor rate of 1.3 on a $10,000 advance means you repay $13,000 in total. Because of this structure, the cost of an MCA is usually higher than a term loan or a line of credit.

We want to be transparent: an MCA is fast and flexible, but it is one of the more expensive funding options. It can make sense for short-term needs when speed matters most. An advisor will walk you through the true cost so you can decide with clear eyes.

Best for

• Retail, food, and service businesses with steady card sales
• Short-term needs where speed matters most
• Owners who understand and accept the higher cost structure

Typical requirements

Most lenders typically look for the following. Exact criteria vary by partner.

• Time in business: often 6 months or more
• Steady card or bank deposit volume
• Monthly revenue: commonly $10,000 or more
• Documents: recent business bank or card processing statements

How the process works

What to expect

MCAs can fund in as little as one to three business days. Repayment is tied to your revenue through daily or weekly remittances, and the total cost (set by the factor rate) is typically higher than a term loan. Alta matches you with funding partners; the partner sets the advance amount and factor rate.

Final terms, eligibility, rates, and approval decisions are made by the lender partner, not by Alta Business Loans. We do not guarantee approval or specific terms.