Resources
Empowering your business starts with the proper knowledge. At Whitestone BPO, we provide resources to help you understand Merchant Cash Advances better and how they can support your business goals. Whether new to alternative funding or looking to make a more informed decision, we’ve got you covered.
MCA 101: What Is a Merchant Cash Advance?
Learn the fundamentals of how MCAs work, who they’re for, and why they’re different from traditional loans. This guide explains the pros, cons, and everyday use cases — all in plain language.
How to Qualify for a Merchant Cash Advance (MCA)
Unlike traditional loans, qualifying for a Merchant Cash Advance is fast, flexible, and centered around your business performance, not your credit score. Here’s a breakdown of what most MCA providers look for — and how you can prepare.
Basic Eligibility Requirements
- Consistent Monthly Revenue
- Most MCA providers require your business to generate at least $5,000 to $10,000 in monthly revenue.
- Strong daily or weekly credit/debit card sales are a big plus.
- Business Operating History
- Your business should be operating for at least 3–6 months, though some providers prefer 1+ year.
- Startups with no revenue history are generally not eligible.
- Credit Card or Bank Transaction Volume
- Since MCAs are repaid as a percentage of daily sales, regular credit/debit card transactions or consistent deposits are important.
- Providers look at your bank statements to confirm this.
- U.S.-Based Business (or Region-Specific)
- Your business must be located and operating in a region where the provider is licensed to operate, most often within the U.S.
- No Open Bankruptcies
- While credit scores aren’t the main factor, open or recent bankruptcies can disqualify your business.
What Documents Do You Need to Apply?
Most MCA applications are simple, but having these ready can speed up approval:
- Last 3–6 months of business bank statements
- The last 3–6 months of merchant (credit card) processing statements
- Basic business info: legal name, address, EIN, business structure
- Owner’s ID and Social Security Number (SSN)
- Voided business check (for direct deposit)
What Improves Your Chances of Approval?
- High and consistent daily/monthly sales
- Few or no recent NSF (non-sufficient funds) or overdraft events in your statements
- No major tax liens or judgments against the business
- Having low outstanding debt or not currently stacked with other MCAs
Key Takeaways
Factor | Ideal For MCA Approval |
Monthly Revenue | $10,000+ preferred |
Time in Business | 6+ months |
Credit Score | Not critical (most accepted, even if low) |
Industry Type | Most accepted, including high-risk |
Paperwork Needed | Minimal — 3–6 months of bank statements |
How Long Does It Take?
- Application: ~10 minutes
- Approval: often within 24 hours
- Funding: same or next business day
Ready to Apply?
If your business generates revenue and needs fast, flexible funding, you are likely qualifying for an MCA. Our team is here to walk you through the process—there is no obligation, just clear guidance.
Start your application today or speak with a funding specialist. (Application Link)
Application Checklist
Get ahead of the process with a simple, step-by-step breakdown of what you’ll need to apply for, including documents, sales data, and how to speed up your approval.
Understanding MCA Repayment
We break down how daily repayments work, the role of your sales volume, and how the holdback percentage affects your cash flow. Learn how MCA repayment adjusts with your business performance.
Renewal & Refinance Guide
- Already have an MCA. Learn how to renew your funding or refinance under better terms. This guide explains when it’s the right time and what benefits it can bring your business.
Call our Specialist and they will help you set up step by step.
📊 MCA vs. Business Loans
A side-by-side comparison of MCAs and traditional business loans. Understand the differences in speed, approval, repayment, and flexibility to choose the best option for your needs.
Category | Merchant Cash Advance (MCA) | Traditional Business Loan |
Approval Time | ✅ Fast — often approved within 24 to 48 hours | ❌ Slower — may take days to weeks for approval |
Funding Speed | ✅ Very quick — same or next-day funding available | ❌ Slower — funding may take 1–3 weeks after approval |
Credit Requirements | ✅ Lenient — focuses more on sales performance than credit score | ❌ Stricter — strong personal and business credit often required |
Collateral Required | ❌ No — unsecured funding | ✅ Yes — often secured with assets like property or equipment |
Repayment Method | 💳 % of daily credit/debit card sales (automated holdback) | 💰 Fixed monthly payments (regardless of business income) |
Repayment Flexibility | ✅ High — payments scale with sales volume | ❌ Low — payments remain fixed, even during slow seasons |
Term Length | ⏳ Short — typically 3 to 18 months | 🗓️ Longer — usually 1 to 10 years depending on the loan |
Use of Funds | ✅ Flexible — no restrictions | ❌ May have restrictions based on loan type or lender |
Cost of Capital | 🔺 Higher — cost is typically expressed as a factor rate (e.g. 1.3x) | 🔻 Lower — interest rates are usually lower (but stricter terms) |
Best For | ✔️ Quick cash flow boosts, emergencies, short-term needs | ✔️ Long-term investments, expansion, asset purchases |
Risk of Denial | 🔻 Low — approvals based on revenue consistency | 🔺 Higher — especially for new businesses or low credit scores |
Documentation Needed | Minimal — bank statements, merchant processing reports | Extensive — tax returns, financial statements, credit reports, etc. |