Fast working capital, repaid from future sales
A merchant cash advance (MCA) gives your business a lump sum today in exchange for a share of future receivables. It is not a loan, it is built for speed, and remittances move with your revenue.
What is a merchant cash advance?
With a merchant cash advance, a funding company purchases a portion of your future sales at a discount. You receive the purchase price up front, and the funder collects the purchased amount over time as a fixed percentage of your revenue — called the holdback or specified percentage.
Because it is a purchase of receivables rather than a loan, approval leans on the health of your sales and bank activity more than on your personal credit score or collateral. That is why MCAs are one of the fastest forms of business funding available.
An example in plain dollars
| Advance (purchase price) | $50,000 |
|---|---|
| Factor rate | 1.30 |
| Total purchased amount | $65,000 |
| Cost of capital | $15,000 |
| Holdback | 10% of sales |
| If you sell $3,000 on a given day | $300 remitted that day |
Illustrative only. Actual amounts, factor rates and terms are set by the funding partner and depend on your business.
Want the math behind it? How to calculate MCA payments →
How it works
- 1
Apply
Short online application plus your last 3–4 months of business bank statements.
- 2
Review offers
Funding partners propose an amount, a factor rate and a remittance schedule.
- 3
Get funded
Sign the agreement you choose. Funds are typically deposited within 24–48 hours.
- 4
Remit from sales
A set percentage of revenue is remitted daily or weekly until the purchased amount is delivered.
Who typically qualifies
- U.S.-based business, usually 6+ months in operation
- Around $10,000+ in monthly revenue (varies by partner)
- An active business checking account
- Fair or challenged credit can still be considered
Common uses of funds
- Inventory and supplies
- Payroll during a slow stretch
- Equipment repair or replacement
- Marketing and expansion
- Covering a gap until receivables arrive
- Renovations and new locations
Advantages
- Speed: decisions in hours, funding in days
- Approval based on revenue, not just credit
- Remittances flex with sales
- Usually no collateral or real-estate lien
Things to weigh
- Typically costs more than bank or SBA financing
- Shorter terms mean larger remittances
- Frequent (daily/weekly) remittances
- Stacking several advances can strain cash flow
We will always tell you if a cheaper option may fit you better.
Merchant cash advance FAQ
Is a merchant cash advance a loan?
No. A merchant cash advance is the purchase of a portion of your future receivables at a discount. You receive funds up front and the funder collects an agreed percentage of your sales until the purchased amount is delivered.
How fast can I get funded?
Many businesses receive a decision within hours of submitting a complete application and bank statements. After you accept an offer and sign, funds are often deposited within 24–48 hours. Timing depends on the funding partner and your documents.
Will applying affect my credit score?
Applying with Tnufa doesn't affect your personal credit score. A funding partner may run a credit check later in the process, and they will tell you before they do.
Can I qualify with bad credit?
Often, yes. Funding partners focus mainly on your revenue and bank activity, so fair or challenged credit does not automatically disqualify you. Stronger credit can mean better pricing.
What is a factor rate?
A factor rate is a decimal, typically between about 1.10 and 1.50, that sets the total amount to be delivered. A $40,000 advance at a 1.25 factor rate means $50,000 is collected over the life of the advance.
How are remittances collected?
Usually by automatic ACH debit from your business bank account, daily or weekly, or as a percentage split of card sales through your processor. The amount is based on an agreed percentage of your revenue.
What if my sales drop?
Because an MCA is tied to your revenue, many agreements include a reconciliation provision that lets you request that remittances be adjusted to reflect actual sales. Contact your funder as soon as revenue changes.
Can I pay off early?
Some funding partners offer an early-payoff discount; many do not, because the cost is fixed by the factor rate. Ask before you sign and get the terms in writing.
How much can I get?
Offers are usually sized from your average monthly revenue — often somewhere between 50% and 150% of one month of deposits, depending on the business, its history and existing obligations.
What do I need to apply?
A short application, your last 3–4 months of business bank statements, and a government ID for the owner. Some partners may ask for a voided check or processing statements.
See what your business qualifies for.
It takes about 3 minutes and doesn't affect your personal credit score.