Why Choose a Merchant Cash Advance?
Automate pay back as a percentage of your credit and debit sales.
Easy to Qualify
Qualify with a 500 credit score, at least one year in business, and other manageable requirements.
Receive your funds within as little as 24 hours upon approval.
Trust Your Specialty Funding Provider
Lendr offers an up-to-date approach to working capital and small business financing. Pick the company that understands your small business challenges, knows your industry and lives by its core values. Work one-on-one with an expert to come up with the best contract terms for your company’s unique financial needs.
Explore the Advantages
- Competitive cash advance rates
- Funding from $5k to $500k
- Convenient pay back based on your card sales
- Simple application process
- Low credit requirements
- Same or next-day funding
- High approval rate
- Emphasize business performance, not just credit score
How Does it Work?
What is a Merchant Cash Advance?
A merchant cash advance (MCA) is a funding option for your company to take out a short term advance in exchange for a percentage of future credit or debit card sales. We give you the funds today, and you pay them back as a portion of daily credit card transactions in the future.
What are the Steps to Take an MCA?
First, you will apply to make sure you qualify. The process is pretty straightforward. Apply on our website and just let us know your:
- Contact information
- Business name
- Time in business
- How much capital you need
- Monthly sales
2. Collect Docs
Once your application is complete, we will be in touch to collect a few things to get to know about you:
- Photo ID or driver’s license.
- Voided business check.
- 3 months of bank account statements
3. Establish Your Terms
Then, you will work with your funding manager to determine terms that work for you. Once we review the documents you sent over we may need the following:
- Business license
- Bank verification
- Current financials
- And more
4. You’re Approved!
Once we look over the terms and the documents sent over, we will determine if we can approve you for funding. Within a few short hours, you’ll know if you’re approved! Then we can get you the required paperwork needed to finalize the agreement.
5. Receive Your Funds
Once the docs are signed and sent back to us, you’ll receive a call confirming the funds requested and other terms of the agreement. Once you agree to these terms, you’ll get your funding on the same or next day! The best part is we’ll set your remittance on autopilot, so you don’t have to worry about it in the future.
Frequently Asked Questions
Discover the answers to some of the most common questions clients ask about cash advances.
A cash advance can be taken out by a merchant to cover any number of operating expenses. It’s an easy way to get the funds they need fast, without waiting for months for a bank to quite possibly turn them down. Some uses could be for product supplies, new equipment, payroll, or operations costs. A cash advance should be taken with the intention of making the company more money in the future.
No, a merchant cash advance is not a loan. Instead, it is a form of specialty financing. It will not show up on a company’s credit profile, and it is not considered “debt” in the traditional sense.
No. Because a merchant cash advance is not a loan, it will not harm a company’s credit score.
A merchant cash advance is paid back according to the terms agreed upon by you and your funding company.
A cash advance doesn’t have an interest rate like a traditional loan. Instead, MCAs have a factor rate. For example, you can expect to pay between 1.1x and 1.5x on an advance, depending on the remittance turns (see next question) you agree on. For example, with a $100 lump sum advance under 1.2x terms, you would pay $120 in total.
The short answer is no. The simplest way to remember the differences between an MCA and a loan is the following.
(Loan) Interest rate = Factor rate (MCA)
(Loan) Repayment = Remittance (MCA)
(Loan) Term= Turn (MCA)
How to Qualify for a Lendr Merchant Cash Advance
In order to qualify, you must have at least 51% ownership of your company, generate $10k or more in monthly credit and debit sales, have a minimum credit score of 500, and have been in business for at least a year. If this sounds like you, apply today and receive your funds within as little as the same or the next day after you’re approved!