Merchant Cash Advance
A merchant cash advance is funding based on your business revenue. A provider advances funds now and is repaid out of your future sales, usually through a fixed daily or weekly ACH from your business account or a holdback of a set percentage of your card receipts. One application with ClickFundBiz lets you explore advance options from participating providers.
Financing options are provided by participating financing providers and are subject to their eligibility requirements, approval and terms.
Merchant Cash Advance
Common uses
Every business is different. These are some of the purposes businesses often pursue with this type of financing.
- Covering payroll or rent through a slow stretch
- Buying inventory ahead of a busy season
- Replacing or repairing equipment that cannot wait
- Paying a supplier early to hold a price or a delivery slot
- Bridging the gap while receivables come in
- Funding a short marketing or hiring push
- Handling an unexpected expense without pausing operations
- Covering a tax or insurance bill that came due all at once
What to expect
How the process works
One application. Multiple possibilities. ClickFundBiz works as a broker on your behalf; financing providers make all credit decisions.
Apply once
Tell us about your business, your financing needs and your timeline. One application covers every option we explore for you.
We identify providers
Our team reviews your request and identifies participating financing providers whose programs and criteria may fit your business.
Compare any offers
If a provider extends an offer, you review its terms directly (amount, payments, cost and conditions) and decide what works for you.
The provider funds
The financing provider you choose completes its own underwriting and, if it approves your application, funds your business directly.
The cost of an advance is expressed as a factor rate, not an interest rate and not an APR. The amount advanced is multiplied by the factor rate to produce one total repayment amount, and because that total is set at the start rather than accrued over time, an advance cannot be compared to a loan on rate alone. Read every offer for three things: the amount advanced, the total amount to be repaid, and the remittance (how much leaves your account, how often, and roughly how long it runs). Each provider sets its own pricing and structure, and ClickFundBiz records any offer exactly as the provider states it.
Underwriting
Factors providers often consider
Each financing provider sets its own criteria and makes its own decisions. These are factors providers commonly review, not requirements set by ClickFundBiz, and not a checklist that promises any outcome.
Commonly reviewed
- Time in business, and how long the business bank account has been open
- Monthly revenue and the pattern of deposits across recent statements
- Average daily balance in the business bank account
- NSFs, overdrafts and negative days in the statement period
- Existing advances, and what position a new advance would take
- Industry and state, and how much revenue arrives by card versus ACH or check
Worth keeping in mind
- Speed and reach come at a cost: an advance is generally more expensive than a term loan or a line of credit, so it fits a need with a clear return or a real deadline
- Because pricing is a factor rate, paying early usually does not reduce the total owed, though some providers offer an early payoff discount at their own discretion
- Remittance is frequent, daily or weekly with most providers, so the schedule has to fit your ordinary cash flow rather than your best week
- Taking an additional advance on top of an open one (often called stacking) raises the combined daily obligation quickly and can breach the terms of the first advance
- Providers commonly ask for a personal guarantee of performance and file a UCC on business assets
- Several states require providers to give standardized commercial financing disclosures, so what you receive can differ by state
- If the need is long term or the asset has a long life, ask us about a term loan, a line of credit or equipment financing first
Submitting an application does not guarantee approval, funding, or any particular rate or term.
FAQs
Common questions
Straight answers about how this type of financing typically works and how our broker process applies.
Is a merchant cash advance a loan?
How is the cost of an advance expressed?
How is an advance repaid?
What does position mean, and why does it matter?
What documents are usually requested?
When does an advance make more sense than a loan or a line of credit?
More options
Explore other financing options
Not sure this is the right fit? Compare other ways businesses finance their goals, or tell us in your application and we can help you narrow it down.
Let's find financing that fits your business.
One application. Multiple possibilities. Start when you're ready. There's no obligation to accept any offer.
Financing options are provided by participating financing providers and are subject to their eligibility requirements, approval and terms.