Is a merchant cash advance a loan?
No. It is the purchase of a portion of your future receivables at a discount. That is why the cost is expressed as a factor rate rather than an interest rate, and why there is no APR or monthly payment.
What is a factor rate?
A multiplier on the amount advanced. A factor rate of 1.30 on $100,000 means $130,000 is repaid in total, regardless of how quickly — unless the agreement carries an early payoff discount. Always ask for the total dollar figure.
How fast can we fund?
Same day is realistic on a clean, complete file. It is not a promise, and nobody should give you one before seeing your statements. What actually slows a file down is missing months, an undeclared position, or a second bank account nobody mentioned.
Will this affect my credit score?
An initial review is a soft pull and does not affect your score. Ask any funder to confirm that before they run anything.
My credit is bad. Is it worth applying?
Yes. There is no hard floor here. Scores in the 500s are funded routinely. Revenue, time in business and how the bank statements read matter considerably more than the number.
Can I get funded if I already have an advance?
Often, yes, if the revenue supports both. It is arithmetic rather than policy. Declare what you have — it is visible in the statements anyway.
Daily or weekly payments?
Ask for weekly wherever it is available. The total cost may be similar but the pressure on your account is very different.
Do you fund sole proprietors?
Yes. A sole proprietorship is read the same way any other file is read. Non-profits are not eligible, and where there are partners we need 50% or more ownership.
Should I ever pay a fee up front?
No. Legitimate funding costs come out of the advance or are built into the repayment. A fee requested before an offer exists is a reason to walk away.
Who actually funds the money?
We do, from our own capital. Ask every funder you speak to the same question, and check the entity named on the agreement matches the company you have been talking to.