Working capital / merchant cash advance
An advance that flexes with your revenue
A merchant cash advance provides capital now in exchange for a set amount of your future sales. It is an advance, not a loan: its cost is a factor rate rather than an APR, and you repay through a share of daily or weekly revenue. That flexibility and speed come at a higher cost than a term loan or line, so it fits specific situations rather than every need.
- Capital advanced against future receivables
- Repayment flexes with your revenue
- Streamlined documentation and fast funding
- Built for cyclical and seasonal operators
Illustrative example
CS · 2026Cash advance
$65,000
1.28 factor · ~7 mo · indicative
Example only. Not an offer of financing, a quote, or a credit decision.
What is a merchant cash advance?
A merchant cash advance is the purchase of a fixed amount of your future receivables for a lump sum today. It is an advance, not a loan, so its cost is expressed as a factor rate (for example 1.25), not an annual percentage rate, and there is no traditional interest schedule. You repay by remitting a set percentage of daily or weekly sales, or a fixed daily or weekly amount by ACH. Higher-revenue periods repay faster and slower periods repay slower, so the structure flexes with the business. Because it is fast and forgiving on documentation but more expensive than a loan, it is best used deliberately: to seize a time-sensitive opportunity or bridge a short gap, not as long-term capital.
Be clear-eyed about cost. A factor rate of 1.30 on $100,000 means you remit $130,000 regardless of how quickly you repay, so the effective annualized cost of a short advance can be very high. If your profile supports a term loan or line of credit, those are almost always cheaper. We will tell you honestly when a slower, cheaper option is the better call for your business.
What it gives you
Repayment that flexes
Remittance moves with your revenue, easing pressure in slower weeks.
Fast and light on docs
Less paperwork than a traditional loan, with funding often in days.
Revenue-based qualification
The match is built around your operating revenue, not credit score alone.
Cycle-aware
Suited to seasonal and project-driven businesses with uneven sales.
About merchant cash advances: an advance is a purchase of future receivables, not a loan. Cost is expressed as a factor rate, not an APR. Remittance is taken as a fixed percentage of daily or weekly revenue, or a fixed daily or weekly ACH, so the total remitted is known up front but the timing depends on your sales. Frequent remittance can affect cash flow. Confirm the full structure before you commit.
Frequently asked
Questions, answered plainly.
Is a merchant cash advance a loan?+
No, and the distinction is not just semantics. An advance is the purchase of a portion of your future sales for money today, so its cost is a factor rate rather than an APR and repayment is a share of revenue rather than a fixed interest schedule. That is why it can fund fast and flex with sales, and also why it is not directly comparable to a loan's stated rate.
How much does a merchant cash advance really cost?+
Cost is set by the factor rate, and the trap is that a factor rate looks small next to an interest rate but is not the same thing. Because the money is repaid over a short window, the effective annualized cost is usually far higher than a term loan. Always convert the factor rate into total dollars and a rough annualized figure before you decide.
Example
A 1.30 factor on $100,000 means you repay $130,000, a $30,000 cost. If that is repaid over about six months, the effective annualized cost lands well north of 50%, even though 1.30 looks modest at a glance.
How does repayment work?+
You remit a set percentage of daily or weekly sales, or a fixed daily or weekly ACH. The total you repay is fixed up front by the factor rate; only the timing moves with your sales. The practical implication is cash-flow pressure: a daily remittance quietly reduces the working capital you have on hand every single day until it is paid off.
When does an advance actually make sense?+
When speed is decisive and the return on the capital clearly beats its cost: a time-sensitive inventory buy, a large committed order you can fulfill profitably, or a short bridge to a known inflow. The test is simple: if the opportunity earns more than the advance costs and waiting would lose it, the math can work. For ongoing working capital, a line of credit is almost always the better structure.
Example
A retailer is offered $100,000 of inventory at 40% off, a $40,000 saving, but must pay this week. A $100,000 advance costing $15,000 still nets a $25,000 gain and moves fast enough to catch the deal. Using that same advance to cover ordinary monthly bills would just be expensive money.
What credit score do I need?+
Advances qualify primarily on your revenue and bank-deposit history rather than personal credit alone, which is why they reach businesses that do not yet fit a bank loan. That accessibility is the upside; the higher cost is the price of it. Getting matched returns an indicative range.
How fast can I get funded?+
Advances are among the fastest options, often funding within one to three business days once bank statements are provided. Speed is the product's main advantage, so it is worth paying for only when speed genuinely changes the outcome.
Merchant cash advance and working capital, explained honestly
A merchant cash advance is fast, flexible capital priced at a factor rate and repaid from revenue. It is powerful for the right, time-sensitive situation and expensive as a default. Capital Selector sizes it against your revenue and, just as important, tells you when a term loan or line of credit would serve your business better.
See what your business qualifies for.
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