Speed vs Cost
Merchant cash advances provide fast access to capital based on business revenue rather than personal credit. The tradeoff is cost—MCAs typically have higher effective rates than traditional funding products. This makes them a tool for specific situations rather than a default funding strategy.
When MCAs Make Strategic Sense
MCAs can be appropriate when speed is the primary concern, when revenue supports the repayment structure, and when there is a clear plan to refinance into a lower-cost product as soon as your profile supports it. They should not be used as a long-term capital solution or when lower-cost alternatives are accessible.
Better Alternatives When Possible
If your profile can support 0% cards, lines of credit, or term loans, those products offer significantly lower costs. The funding readiness framework helps determine which products are accessible now and which require additional preparation.
Next Step
Start with prequalification to see what funding options are available to you before considering higher-cost products.
Start Prequalification →