MCA Business Loan

Instead of charging an interest rate like a traditional loan, MCAs use a “factor rate” (for example, 1.2–1.5), which determines the total payback amount. 

They’re often fast to fund and easier to qualify for than bank loans, making them attractive for businesses with strong, consistent revenue but limited credit history.

Apply for an MCA Loan
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What is an MCA Loan or Funding and How Does it Work?

An MCA loan, short for Merchant Cash Advance, isn’t a traditional loan in the usual sense. It’s an upfront cash advance that a business receives in exchange for agreeing to repay from future sales. Instead of borrowing money with a set interest rate and fixed monthly payments, the business is essentially selling a portion of its expected revenue to get cash immediately.

When a business takes an MCA, the lender (ECG) provides a lump sum up front and then collects repayment automatically through a percentage of daily or weekly sales, often pulled directly from credit card receipts or bank deposits. This means repayment rises and falls with revenue—if sales are strong, the advance is paid back faster, and if sales slow down, the payments shrink. That flexibility is one reason MCAs appeal to businesses with steady transaction volume.

What Are the Advantages?

  • The first is speed. MCA providers can often approve and fund in a couple of days (sometimes even faster).
  • They are easier to qualify for than most loans. Approval is usually based more on your recent sales and cash flow than on your credit score or years in business.
  • Repayment flexes with your sales. Because repayments are a fixed percentage of daily or weekly revenue, you don’t get stuck with a rigid monthly bill.
  • MCAs are fairly open-ended in how you can use the funds.

Minimum Requirements

  • Consistent business revenue: Most MCA providers want to see steady sales, often shown through recent bank deposits or card transactions.
  • Minimum time in business: Many require your business to be operating for at least a few months (often 3–6+), though some prefer longer.
  • Monthly sales volume threshold: Lenders usually look for a minimum level of sales per month to ensure repayment can be supported.
  • Active business bank account: You’ll need a business checking account where deposits flow regularly, since repayment is typically pulled from it.
  • Recent bank statements and/or credit card processing records: Expect to provide the last 3–6 months of statements to verify cash flow and sales patterns.

FAQs