Merchant cash advances
A merchant cash advance is not a loan: a funder buys part of your future card or bank sales and collects a share of them.
20% to 60%
Pricing as quoted by funders in our network for merchant cash advances and purchases of receivables, as of September 2026.1,5
In exchange for cash now, you agree to deliver a set amount of future sales, collected as a share of your card sales or as regular debits from your bank account until that amount is paid. It can suit a business with steady sales, but it can cost much more than a loan, so compare total cost with every other offer.
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Because it's a sale of future revenue and not a loan, the funder's cost is usually stated as a factor rate rather than an interest rate, and rules written for loans may not apply to it. Compare offers by total cost: what you receive now against everything you will pay back.
How a merchant cash advance works
A funder agrees to buy a set amount of your future sales, and pays you a smaller amount now. The difference is the funder's cost.
The money arrives in your business bank account.
The funder collects a fixed share of your card sales, or makes regular debits from your bank account, as the agreement sets out.
When sales slow, a true share of sales collects less. With fixed debits, check whether the agreement lets payments be adjusted to match your actual sales.
Collection stops once the agreed amount has been delivered. Paying early often doesn't reduce that amount, unless the agreement offers an early payoff discount.
When it fits, and when it doesn't
Where it fits
- Your business takes steady card or bank sales, like a restaurant, a shop or a salon.
- You've compared other options, and a loan isn't available to you or doesn't fit your timing.
- You want payments that rise and fall with your sales, and the agreement really works that way.
- You have a short-term need with a clear return, and you've checked the total cost.
Reasons to think twice
- It can cost much more than a loan. Compare the total you will pay back, not just the factor rate.
- Frequent collections, daily or weekly, can strain your cash flow in a slow stretch.
- Taking a second advance to cover the first, often called stacking, can get out of hand, and many agreements forbid it.
- Paying early may not save you anything. Read what happens if your sales fall or the business closes.
What funders usually look at
- Your card and bank sales, and how steady they are
- Recent bank activity, including overdrafts or returned payments
- How long your business has been operating
- Any advances you already have
- Credit history, which some funders weigh less than your sales
What they weigh, and how much, differs from one to the next and by product. No single number decides it.
Documents you may be asked for
- Recent business bank statements
- Card processing statements, if you take cards
- Details of any other advances or financing you have
- Basic details about the business and its owners
Each lender or funder tells you what it needs for your application, and you can upload documents in your 37Lend account.
Also called
- MCA
- Business cash advance
- Merchant advance
- Revenue-based advance
- Sales-based financing
- Split funding
Compare with
Purchase of receivables
A purchase of receivables is not a loan: a funder buys a portion of your future receivables at a discount and collects them.
Line of credit
A business line of credit lets you draw funds as you need them, up to a limit, and pay interest only on what you use.
Term loan
A term loan is a lump sum you repay in fixed installments over a set term, for a one-time cost with a clear payback.
Merchant cash advance questions
What does a merchant cash advance cost?
Funders in our network quote merchant cash advances and purchases of receivables at 20% to 60%, as of September 2026. That is pricing as funders quote it, not an interest rate, an APR or an offer: an advance is a sale, not a loan, and many funders state its cost as a factor rate. What you're offered depends on your sales, time in business and credit profile, and on the funder, so compare every offer by total cost: what you receive now against everything you will pay back.
Is a merchant cash advance a loan?
No. A merchant cash advance is a sale of part of your future sales to a funder, who pays you now and collects an agreed amount from those sales over time. Because it isn't a loan, its cost is usually stated as a factor rate rather than an APR, and some rules that protect people who borrow may not apply. Compare it with loan offers by total cost.
What is a factor rate?
A factor rate is the way many funders state the cost of an advance: the amount you pay back is the amount you receive multiplied by the factor. It isn't an interest rate or an APR, and it doesn't change with how long repayment takes, so the two can't be compared directly. To compare, look at the total you will pay back and how long collection is likely to run.
Can I get a merchant cash advance with bad credit?
Possibly. Funders tend to focus on your sales and bank activity, and some weigh credit history less than lenders do. That can come at a higher cost, so compare every offer by total cost. Checking your options with 37Lend uses a soft credit inquiry, which doesn't affect your credit score.
Why would a business choose a merchant cash advance over an SBA loan?
Usually for timing or access. An SBA loan asks for more documents and takes longer to arrange, and not every business meets the program's rules. An advance asks for less paperwork but can cost far more. If you can wait and meet the requirements, compare an SBA loan or a term loan first.
Can I pay off a merchant cash advance early?
You can usually pay the remaining amount at any time, but because the amount owed is fixed when you sign, paying early often saves nothing. Some agreements offer an early payoff discount, so ask before you accept.
Want to talk it through first? Book a call with a funding advisor.