Merchant Cash Advances (MCAs) can be a fast, flexible funding option for small businesses—especially if you need cash quickly and have steady sales. But it’s important to understand how the terms work so you can decide if it’s the right fit for you.
Here’s a closer look at typical MCA terms and what you can expect:
✅ Funding Amount
MCAs are designed to meet the cash flow needs of small businesses of all sizes.
Funding typically ranges from $5,000 to $2 million (or even more in some cases).
The exact amount you’re offered depends on your business’s sales volume and cash flow.
We’ll work with you to find the amount that makes sense for your goals—no more, no less.
✅ Factor Rates—Not Interest Rates
MCAs use a factor rate rather than a traditional interest rate.
A factor rate might look like 1.2 or 1.3.
To figure out your total payback amount, you multiply the funding amount by the factor rate.
For example: a $10,000 advance with a factor rate of 1.3 means you’d repay $13,000 in total.
This approach is different from traditional loans, and it’s one reason why it’s so important to fully understand your funding terms.
✅ Repayment Period
MCAs are designed for short-term needs—not long-term investments.
Repayment periods typically range from 3 to 18 months, depending on your advance amount and your sales.
Because repayments happen daily or weekly, you’ll see progress quickly, and you won’t be stuck with a long-term commitment.
✅ Flexible Repayments Tied to Your Sales
One of the biggest advantages of an MCA is how flexible it is.
Instead of a fixed monthly payment, a small percentage of your sales is automatically deducted to repay your advance.
If business slows down, your payments adjust too—no stress, no penalties.
This structure helps your cash flow stay in balance, even during slower months.
✅ Why We Lend It Stands Out
At We Lend It, we know that understanding these terms is essential for your business. That’s why:
We’re transparent about every term—no hidden fees, no surprises.
Your dedicated Funding Specialist will walk you through exactly what to expect and answer every question you have.
We’ll also talk about other funding options—like traditional loans, lines of credit, or equipment financing—so you can compare and decide what’s best for your situation.
💡 Final Thoughts
MCAs can be a powerful tool when you understand the terms and how they fit your business. If you’re curious about how an MCA might work for your business—or want to see how it compares to other options— 👉 start your application here
At We Lend It, we’re here to make sure you’re fully informed—so you can make confident decisions about your funding.
Let’s talk!