How Does a Merchant Cash Advance Work?
A plain-language guide to MCA funding — how it works, who qualifies, what it costs, and when it makes sense for your business.
What is a merchant cash advance?
A merchant cash advance (MCA) is a form of business funding where you receive a lump sum of capital upfront in exchange for a percentage of your future revenue. Unlike a traditional business loan, there is no fixed monthly payment, no collateral requirement, and approval is based primarily on how much your business makes — not your credit score.
How does repayment work?
Repayment happens automatically. Each business day a fixed percentage of your revenue is debited from your business bank account — called the holdback rate, typically between 10% and 20% of daily deposits. Slower months mean smaller payments automatically.
How much can I get?
Most MCA funders advance between 1x and 1.5x your average monthly gross revenue. Max Funding works with advances from $50,000 to $500,000.
Who qualifies?
Qualification is based on three factors: your credit score (a baseline review), your monthly gross revenue, and your time in business. Industries Max Funding works with include construction, restaurants, retail, and trucking.
How fast is funding?
Joel Carbajal has direct relationships with select high-reputation lenders — most clients are funded within 24 hours of approval. Some qualify for same-day funding.
Is an MCA right for my business?
An MCA makes sense when speed matters. If your business needs capital quickly and you generate consistent monthly revenue, an MCA is worth exploring. Checking your options is free and will not affect your credit score.
$50K to $500K in as little as 24 hours. Checking your rate will not affect your credit score.
Get funded in 24 hours