What is a Merchant Cash Advance?

Merchant Cash Advance (MCA) is a financing option where businesses receive cash upfront in exchange for a percentage of future credit card sales. Unlike traditional loans, MCAs typically have a faster application process and offer repayment flexibility.

When you receive a merchant cash advance from NextGenBuilder, we’ll provide you with a lump sum of capital in exchange for a percentage of your business’s future sales. That means you’ll receive working capital now, and we’ll receive a percentage of your sales until the amount of sales we have purchased has been received.

Our Funding Advisors will work closely with you to create a funding plan that will help jumpstart your business’s growth without maxing out your cash flow. Business owners averaging a minimum of $7,500 per month in sales over the last three months typically qualify for an MCA equal to 70-120% in funding, from as little as $3,000 up to $500,000. We offer both fixed and flexible repayment schedules, and there’s no fixed term.

Merchant cash advance rates

Merchant cash advances use factor rates instead of a traditional interest rate. Factor rates are simple decimal figures that show how much “extra” you will owe on the original amount of the loan. Your factor rate is determined based on a risk assessment. Most factor rates fall between 1.1 and 1.5.

Who Should Apply for a Merchant Cash Advance?

Merchant cash advances are ideal for:

  • Businesses seeking fast funding—MCAs can be deposited in as little as 24 hours

  • Businesses that process a lot of debit and credit card transactions

  • B2C businesses that need smaller amounts of funding

  • Businesses with lower credit scores

  • Business owners that do not have collateral, such as real estate and other assets

Merchant cash advances can benefit restaurants, dental practices, attorneys, medical practices, gas stations, pharmacies, and more. No matter what industry you operate in, our expert Funding Advisors will work closely with you to select the best funding option to help you achieve your business’s goals without sacrificing cash flow.

How to Get a Merchant Cash Advance

Apply

Gather 3 months of bank statements and other records. For faster approval, grant us secure access to your bank account’s transactional data.

Choose Funding

A Funding Advisor will reach out to you within 1 hour (during regular business hours) to complete your application & discuss your funding options.

Get Funded

Once you and your Funding Advisor determine what funding option works for your business, your funds can be approved and deposited within 24 hours.

Set Repayment

Payments will be automatically deducted from your business’s daily or weekly debit and credit card sales. Payment amounts will be based on your sales.

How to Use a Merchant Cash Advance

There are no restrictions on how a merchant cash advance can be used. MCAs are typically best used to support growth strategies that will help increase your revenue, such as:

  • Taking advantage of time sensitive opportunities to grow

  • Expanding your marketing strategy

  • Purchasing inventory or raw materials in bulk

  • Upgrading equipment or technology

  • Hiring new staff

  • Investing in training and continuing education

Merchant Cash Advance Requirements

Traditional bank and SBA loans are typically only given to wealthy business owners with property and extremely strong credit scores. Greenbox Capital has more flexible approval requirements that focus on the overall health of your business, not just your credit score. Your business must accept credit and debit card payments to qualify and no collateral is required.

Here are some factors we consider:

  • Business revenue

  • Cash flow

  • Vendor payment history

  • Years in business

  • Public records