Merchant Cash Advance for Small Business

A merchant cash advance gives your business money now in exchange for part of its future sales. Greenbox Capital offers merchant cash advances from $3,000 to $500,000, with decisions often made in 2–5 business hours.

This can work well when you have steady sales, need funds quickly and cannot wait weeks for a bank.

See your options without hurting your credit

Apply online to find out how much you may qualify for. A Funding Advisor will contact you within one business hour to complete the application and discuss your options.

Your initial application uses a soft credit inquiry, so checking your options will not affect your credit score.

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Merchant cash advance at a glance

How a merchant cash advance works

A merchant cash advance, or MCA, is not set up like a standard business loan. We provide a lump sum in exchange for an agreed amount of your future business receivables. Receivables are the sales and deposits your business expects to collect.

The total purchased amount is set when you accept the offer. We then collect that amount through automatic daily or weekly remittances.

An MCA is structured as a purchase of receivables rather than borrowed principal. That changes how it is priced and reviewed. Instead of an interest rate, it uses a factor rate. Approval also depends heavily on your sales, deposits and cash flow.

The exact legal treatment depends on the agreement and the laws that apply to it. A genuine MCA should include a fair way to adjust remittances when actual sales fall.

The process from application to final remittance

1. Apply and provide your records.

   Complete our online application and provide three months of business bank statements. You may also grant secure access to your bank transaction data.

2. We review the business.

   We look at sales, deposits, cash flow, balances, returned payments, time in business, vendor payment history and public records. We then set the advance, factor rate, purchased amount and remittance.

3. Review and accept the offer.

   Your offer shows the numbers before you sign. If you accept it, you sign the receivables purchase agreement and receive the funds.

4. Automatic remittances begin.

   Daily or weekly remittances continue until the purchased amount has been collected. You do not need to make each payment by hand.

Percentage-based collection

With a percentage holdback, we collect an agreed share of card sales. The typical holdback range is {{APPROVED_HOLDBACK_RANGE}}.

Suppose the agreed holdback were 10%. On a $2,000 sales day, the remittance would be $200. If sales fell to $1,000, it would be $100. The percentage stays the same, but the dollar amount moves with sales.

This structure can suit restaurants, shops, salons and other businesses with frequent card transactions.

Fixed daily or weekly remittances

A fixed remittance is based on the sales and deposits reviewed during approval. The same dollar amount is taken each business day or week unless an approved adjustment applies.

This can make planning easier when revenue is steady. If actual revenue falls below the level used to set the payment, the reconciliation terms explain how to request a review.

Our reconciliation policy: {{APPROVED_RECONCILIATION_POLICY}}

What does a merchant cash advance cost?

An MCA uses a factor rate, not an interest rate. We generally offer factor rates from 1.1 to 1.5, based on the strength and risk of the business.

Multiply the advance by the factor rate to find the purchased amount:

Advance × factor rate = purchased amount

If you receive $50,000 at a 1.25 factor rate:

$50,000 × 1.25 = $62,500

The $12,500 difference is the cost created by the factor rate. Any separate fees must also be counted when you compare the full cost.

A worked MCA example

This is an example, not a promise of terms. Your offer will depend on our review of your business.

This example assumes the purchased amount is collected through 26 equal weekly remittances. If the agreement uses a percentage of sales instead, the weekly amount may rise or fall while the purchased amount remains fixed.

Our listed US fees include a setup fee of 4% of the funding amount, with a $349 minimum, plus a $75 funding-disbursement fee.

Fee deduction and any other possible charges: {{APPROVED_FEE_DEDUCTION_TIMING_AND_COMPLETE_FEE_LIST}}

Why can the APR look so high?

APR turns a cost into a yearly rate. An MCA may be collected in a few months rather than over several years. When a short-term cost is annualized, the rate can look very high.

That does not make APR useless. It explains the speed and time value of the transaction in a way that can help you compare it with a loan. But APR does not replace the other numbers you need.

Before accepting an offer, compare:

• The cash your business will receive
• The total cost in dollars
• The daily or weekly remittance
• The expected collection period
• What the funded use may earn or save

An MCA is usually more expensive than a traditional bank loan. It makes the most sense when speed matters and the business use is expected to produce more value than the cost.

Does early payoff lower the cost?

Paying faster does not automatically lower a fixed purchased amount. Greenbox Capital offers early-payoff discounts, but the exact saving depends on the offer and when it is paid.

Your agreement should show the discounted amount clearly.

Early-payoff discount schedule: {{APPROVED_EARLY_PAYOFF_POLICY}}

Merchant cash advance requirements

You can usually be considered if your business meets these starting requirements:

• At least five months in business
• Average monthly sales of at least $7,500 over the last three months
• A US FICO score of 500 or higher
• At least 51% ownership
• A positive average business bank balance
• At least two monthly transactions
• Fewer than 15 overdrafts or NSF events during the last three months
• Fewer than nine negative-balance days
• An eligible US operating location

All entity types may be considered, including sole proprietorships and nonprofits. Merchant cash advances are available in every state except Alabama, as well as Washington, D.C.

What documents will you need?

Start with three months of business bank statements. We may also request:

• Government-issued identification
• Proof of business ownership
• Debit and credit card processing statements
• Voided business check or bank details
• Records needed to confirm revenue or existing funding

Securely connecting your bank account may speed up the review because it lets us verify transaction data without waiting for uploaded statements.

Can you qualify with bad credit?

Yes, a lower score does not automatically rule you out. We look beyond the credit score at your revenue, cash flow, bank balances, deposit consistency, vendor history and public records.

A FICO score of at least 500 is the general floor. Strong, steady deposits can support an application that a bank might decline. A lower score may still lead to a smaller advance or a higher factor rate.

“No credit check” rarely means no review at all. Responsible funders still need to confirm your identity, credit position and ability to support the remittance. Our initial review uses a soft inquiry.

Hard-credit inquiry policy: {{APPROVED_HARD_CREDIT_INQUIRY_POLICY}}

What about young businesses?

Your business needs at least five months of operating history and enough sales records for us to see a reliable pattern.

A new company without that history cannot yet show what its future receivables are likely to be. Keep clean bank records, deposit all business revenue into the business account and avoid returned payments while building that history.

No collateral does not mean no contract protection

You do not need to pledge equipment, property or other business assets as traditional loan collateral. The agreement is instead tied to the receivables being purchased.

You should still understand any personal guarantee, UCC filing or collection right before signing.

Greenbox Capital guarantee and UCC terms: {{APPROVED_PERSONAL_GUARANTEE_UCC_AND_COLLECTION_TERMS}}

Complete statements, steady deposits, positive balances and few returned payments can all improve an offer. Tell us about any open advances. Hiding debt or stacking several advances can put too much pressure on cash flow.

When does an MCA make sense?

You can use the funds for any legitimate business purpose, including:

• Payroll or a short seasonal gap
• Inventory and bulk purchases
• Equipment or urgent repairs
• Technology upgrades
• Marketing tied to a launch
• Hiring and training
• Supplies and project costs
• A time-sensitive growth opportunity

MCAs often suit businesses with frequent card sales or dependable bank deposits. That includes restaurants, retail stores, salons, auto repair shops, e-commerce businesses, contractors, gas stations, pharmacies, and medical, dental and legal practices.

Ask four questions before applying:

1. Do I need the money in days rather than weeks?
2. Are sales steady enough to support frequent remittances?
3. Will this use likely earn or save more than the total cost?
4. Is a less expensive option unavailable in the time I have?

If several answers are no, an MCA may not be the right fit. One of our business loans or lines of credit may give you more time or a lower long-term cost.

How to apply for a merchant cash advance

1. Complete the online form.

   Submit basic details and authorize the soft credit inquiry. A Funding Advisor will contact you within one business hour.

2. Provide your records.

   Upload three months of statements and requested identification, or securely connect your bank account.

3. Review your offer.

   Decisions may take as little as 2–5 business hours. Your offer shows the advance, factor rate, purchased amount, fees, remittance and expected collection period.

4. Sign and receive the funds.

   After you and your Funding Advisor select an option, approval and deposit may be completed within 24 hours. Funding can arrive in as little as one business day.

Complete the application early in the day and send clear, complete records to avoid delays.

Funding relationship, direct-funder status and partner use: {{APPROVED_DIRECT_FUNDER_AND_PARTNER_EXPLANATION}}

Button: Check My MCA Options

MCA vs. business loan or line of credit

An MCA purchases future receivables. A business loan provides borrowed principal that must be repaid with interest.

MCA approval focuses more on sales and deposits. Loan approval often gives more weight to credit, time in business and the ability to make scheduled payments. An MCA can be faster, but a loan will often cost less when the business qualifies and has time to wait.

An SBA loan may cost less for a well-qualified business that can wait through a longer process. Invoice factoring may fit a B2B company with unpaid customer invoices. We can help you compare our available options instead of forcing every need into an MCA.

Benefits and drawbacks of merchant cash advances

Benefits

• Decisions and funding can be fast
• Revenue can matter more than a perfect credit score
• No pledged collateral is required
• Percentage-based remittances can move with sales
• The purchased amount is established at the start
• Funds have no business-use restrictions

Drawbacks

MCAs often cost more than loans. Compare the cost in dollars with the value of the business need.

Daily or weekly remittances can tighten cash flow. Check the payment against a slow week, not your best week.

An MCA may also have limited credit-building value. And contracts across the market differ. Read the reconciliation, guarantee, UCC, early-payoff and collection terms before signing.

What happens if sales fall?

A real sales decline is not the same as blocking withdrawals or moving revenue to avoid remittance.

If sales fall, contact your Funding Advisor before a payment is returned. Provide current statements and ask for a reconciliation review. Do not wait until several payments have failed.

A business already facing a continuing decline may not be a good fit for an MCA. Frequent remittances can make an existing cash shortage worse.

Available hardship support, missed-payment process and possible schedule adjustments: {{APPROVED_HARDSHIP_AND_DEFAULT_PROCESS}}

Confession-of-judgment policy: {{APPROVED_CONFESSION_OF_JUDGMENT_POLICY}}

If remittances stop without an approved adjustment, we may use the rights listed in the agreement. Read those rights before signing and ask about anything that is not clear.

How does an MCA affect credit?

The initial application uses a soft inquiry and does not affect your credit score. Normal MCA remittances do not always build personal credit in the way some loans can.

Collections, legal judgments or other defaults may affect business or personal credit.

Greenbox Capital credit-reporting policy: {{APPROVED_BUSINESS_AND_PERSONAL_CREDIT_REPORTING_POLICY}}

Are merchant cash advances legal?

Yes. Merchant cash advances are a lawful and widely used form of business funding when they are genuinely structured as a purchase of receivables.

Because a genuine MCA is not a conventional loan, standard loan interest-rate caps may not apply in the same way. That does not place providers above the law. Regulators have challenged deceptive pricing, false promises, unauthorized withdrawals, fake reconciliation rights and abusive collection practices.

A sound agreement should include:

• The full cost before signing
• A clear remittance amount and schedule
• A workable reconciliation process
• Every deduction from the advance
• No pressure to sign at once
• Verifiable company contact details
• Required state disclosures or registrations

Greenbox Capital can be reached at (855) 442-3423, info@greenboxcapital.com, or 2200 Biscayne Blvd., Suite 200, Miami, FL 33137.

How MCA disclosure rules work

MCAs are not federally regulated in the same way as consumer loans. Commercial financing disclosure rules also vary by state.

Where required, the disclosure may include the amount provided, finance charge, payment details, estimated term and an annualized cost figure. We show the advance, factor rate, purchased amount, dollar cost, remittance, fees and expected collection period before you sign.

Approved licensing and state disclosure statement: {{CURRENT_LEGALLY_APPROVED_DISCLOSURE_LANGUAGE}}

What to review before signing

Do not sign based only on the advance amount. Check each of these items in the agreement:

• Cash amount provided
• Factor rate
• Purchased amount
• Total cost in dollars
• Daily or weekly remittance
• Collection method and schedule
• Treatment of slow-sales periods
• Reconciliation process
• Setup, disbursement and other fees
• Early-payoff discount
• Personal guarantee
• UCC filing or judgment terms
• Events that count as default

Make sure the agreement matches the offer you discussed with your Funding Advisor. Ask for an explanation if one number or clause does not make sense.

How to compare MCA providers

Start with the total dollar cost, not the size of the advance. Then compare the remittance with your actual sales, especially during a slow period.

Look for clear reconciliation terms, direct answers, verified owner reviews and a named contact after funding.

Be cautious if a provider:

• Sends an unexplained “pre-approved” offer
• Pressures you to sign right away
• Demands a fee before funding
• Never states the purchased amount or total cost
• Encourages you to hide another advance
• Pushes a second advance that your cash flow cannot support

A responsible offer should still make sense after the excitement of fast funding wears off.

Is a merchant cash advance worth it?

An MCA can make sense when a clear short-term use should earn or save more than its cost and cheaper funding cannot arrive in time.

It is not a good way to cover ongoing losses or keep replacing one advance with another. Use the soft-inquiry application to see your actual amount, cost and remittance before deciding.

What business owners say

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See your amount, cost and remittance

Apply with a soft credit inquiry and get a decision in as little as 2–5 business hours. Funding may arrive in one business day after approval.

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Call: (855) 442-3423