**Title:** Merchant Cash Advance (MCA): Terms, Costs and How to Apply | Greenbox Capital

# A Merchant Cash Advance That Tells You the Real Cost Before You Sign

Get $3,000 to $500,000 for inventory, payroll, repairs, equipment or another business need. A merchant cash advance works best for businesses with steady card sales that need funding quickly and can manage daily or weekly remittances.

[Start Your Application]

Or call a Funding Advisor at [(855) 442-3423](tel:8554423423).

Applying takes minutes. It {{INITIAL_CREDIT_PULL_POLICY}} and does not require you to accept an offer.

| Funding amount | Factor rate | Estimated term | Timing |
|---|---:|---:|---|
| $3,000–$500,000 | 1.1–1.5 | 3–15 months for first-position funding | Decisions may take 2–5 business hours; funding may arrive in as little as one business day |

## Start with a short online application

The form asks for basic details about you, your business and your deposits. We review three months of business bank statements. You can upload them or grant secure access to your transaction data. A Funding Advisor will contact you within one business hour to complete the process and discuss your options.

There is {{APPLICATION_FEE_POLICY}} to apply. You may review the written offer before deciding whether to accept it.

## How soon can you receive the money?

A decision may be available in 2–5 business hours. After you and your Funding Advisor choose an option, approval and deposit may take place within 24 hours. Missing or incomplete bank records are a common cause of delay.

## How much can you get?

Our advances range from $3,000 to $500,000. An offer is often equal to about 70%–120% of approved sales. Consistent deposits, healthy bank balances and a longer time in business may support a stronger offer.

# What is a merchant cash advance?

A merchant cash advance, or MCA, gives your business working capital now in exchange for a fixed amount of future sales. We deposit the purchase price. Your business then sends us the agreed purchased amount through automatic daily or weekly remittances.

An MCA is one type of business cash advance. It is structured as a purchase of future receivables rather than a loan. That is why it uses a factor rate instead of an interest rate and does not have a standard monthly loan payment.

It is also unrelated to taking a cash advance from a personal credit card.

That legal difference matters. It changes how the cost is shown, how remittances are collected and how sales changes can affect the estimated payoff date. Read the full agreement before signing, not just the amount shown at the top.

## How the process works

1. **Apply and provide records.** Send three months of bank statements or grant secure access to transaction data. Processor statements and other records may also be requested.
2. **We review the business.** We look at deposits, card sales, account balances, operating history, vendor payment history, public records and credit.
3. **You receive a written offer.** It shows the purchase price, purchased amount, factor rate, remittance amount, payment frequency, estimated term and fees.
4. **Funds are deposited.** Once the agreement is signed and final checks are complete, funding may arrive within 24 hours.
5. **Remittances begin.** Daily or weekly deductions continue until we receive the purchased amount.

The agreement includes an estimated term. If remittances move with sales, the final date may be earlier or later than that estimate.

## Use the funds where your business needs them

There are no narrow use limits. You may use the money for a lawful business purpose, including:

- Payroll timing
- Seasonal inventory
- A broken oven, truck or other key asset
- Equipment or technology
- A supplier deposit
- Marketing with a near-term sales goal
- Hiring and training
- A tax bill
- A location fit-out
- A time-sensitive growth opportunity

A good use should protect or produce revenue soon. MCA funds are for business purposes, not personal, family or household costs.

## Businesses that may be a good fit

An MCA tends to suit businesses that accept debit and credit cards, have steady deposits and cannot wait weeks for a bank decision. No conventional collateral is required.

We fund many types of businesses, including restaurants, retailers, gas stations, pharmacies, construction companies, dental offices, medical practices and law firms. Sole proprietors, partnerships, LLCs, corporations and nonprofits may be considered. Deposit history matters more than entity type.

Our MCAs are available in Washington, D.C. and every state except Alabama.

# What does an MCA really cost?

The factor rate tells you the total payback. It is a multiplier, not an interest rate.

For example, a $50,000 advance with a 1.30 factor rate has a $65,000 purchased amount:

**$50,000 × 1.30 = $65,000**

The dollar cost before fees is $15,000.

Our factor rates generally range from 1.1 to 1.5. Your rate may be affected by deposit consistency, average balances, time in business, estimated term, credit profile and overall risk.

A factor rate does not keep adding interest over time. Under a true sales-based structure, slower sales may extend the estimated term without increasing the purchased amount.

## A complete cost example

| Item | Example |
|---|---:|
| Advance amount | $50,000 |
| Factor rate | 1.30 |
| Total purchased amount | $65,000 |
| Cost before fees | $15,000 |
| Estimated term | 6 months |
| Business days | 130 |
| Estimated daily remittance | $500 |
| Weekly equivalent | $2,500 |

If sales fall and the remittance adjusts from $500 to $300 a day, payoff may take about 217 business days instead of 130. The purchased amount would remain $65,000 under a sales-based agreement.

## Factor rate is not APR

A 1.30 factor rate means the cost is 30% of the advance amount. It does not mean the APR is 30%.

APR takes timing into account. You receive the full advance at the start, but the balance falls with each remittance. Using the business-day cash flows in the example, the annualized rate would be roughly 107% before fees. The exact figure depends on payment dates, fees and the method used to calculate it.

That is why an MCA normally costs more than a bank loan or business line of credit.

We use a simple commercial test: **Will the money protect or produce more value during the term than it costs?** If you qualify for a less expensive product that can arrive in time, that product will usually be the better choice.

## Fees and the cash you receive

Our listed US charges include:

- A setup fee of at least $349 or 4% of the funding amount, as shown in your offer
- A $75 funding-disbursement fee

{{FEE_DEDUCTION_POLICY}}

For example, a 4% setup fee on $50,000 is $2,000. With the $75 disbursement fee, net cash would be $47,925 if both fees were deducted before deposit.

When comparing offers, use these two numbers:

1. **Cash that reaches your bank account**
2. **Total amount you must remit**

Your written offer will also state whether any underwriting, origination, ACH, processing or servicing charge applies: {{OTHER_FEE_POLICY}}.

## Early payoff and renewal

Early-payoff discounts may be available. The exact discount and deadline will be shown in your offer. {{PREPAYMENT_PENALTY_POLICY}}

A renewal may become available after {{RENEWAL_THRESHOLD}}. Any unpaid balance is accounted for when net renewal proceeds are calculated. A renewal should solve a real business need, not hide payment pressure from the first advance.

## MCA cost calculator

Use the calculator as an illustration, not as an offer.

**Inputs**

- Advance amount
- Factor rate
- Average daily or monthly sales
- Holdback percentage or fixed payment

**Visible results**

- **Total purchased amount:** advance × factor rate
- **Estimated daily payment:** daily sales × holdback
- **Approximate payoff time:** purchased amount ÷ estimated payment
- **Estimated cost:** purchased amount − advance

Fees must be added separately.

# How remittances affect daily cash flow

## Sales-based holdback

A holdback, also called a specified percentage, is the share of card sales sent toward the purchased amount. Our normal holdback range is {{HOLDBACK_RANGE}}.

At a 10% holdback:

- $5,000 in daily card sales produces a $500 remittance.
- $3,000 in daily card sales produces a $300 remittance.

Strong sales lead to larger remittances and an earlier payoff. Slow sales lead to smaller remittances and a longer estimated term. The purchased amount does not increase just because sales slow.

Funds may be collected through a processor split, lockbox or ACH, depending on the agreement.

## Fixed ACH remittances

A fixed ACH plan uses the same daily or weekly bank debit. It is set from estimated receipts and may work when card volume is not the only source of business revenue.

A fixed debit is simple, but it can feel heavier during a slow week. If sales fall in a meaningful way, contact us at once. Our reconciliation process is {{RECONCILIATION_DOCUMENTS_AND_REVIEW_POLICY}}.

Reconciliation is important. It allows the remittance to be reviewed against actual sales instead of leaving the business with a payment based on old numbers.

## Check the payment before signing

Compare the proposed remittance with:

- Your average daily deposits
- Your deposits during a slow week
- Payroll and other fixed bills due at the same time
- Payments on any existing financing

We generally underwrite payments up to {{MAXIMUM_PAYMENT_TO_DEPOSITS_PERCENTAGE}} of deposits. A shorter term creates a larger daily pull. If that payment leaves too little room, ask about a longer term or another funding product.

# Can your business qualify?

## Basic requirements

| Generally required | Generally not required |
|---|---|
| At least five months in business | Conventional collateral |
| At least $7,500 in average monthly sales during the last three months | Perfect credit |
| Active business bank account | A long business plan |
| US FICO score of at least 500 | Real estate |
| Debit and credit card sales | A single type of business entity |
| At least 51% ownership by the applicant | Tax returns in every case |
| Positive average bank balance |  |

Applicants should also have at least two monthly transactions, fewer than 15 overdraft or NSF events over three months and fewer than nine negative-balance days.

An open bankruptcy may prevent approval. We also review public records, including tax liens, case by case.

New businesses need enough deposit history for us to understand their sales. Consistent platform or app payouts may count when they enter the business bank account.

## What if you have bad credit?

A lower score does not create an automatic “no.” We give strong weight to revenue, card volume, cash flow, bank-account health, vendor payment history and time in business.

Approval may still be difficult when we find:

- Frequent NSF events
- Repeated negative balances
- Open bankruptcy
- Sharp or continuing revenue decline
- Several existing advances
- Public records that create material risk
- A restricted industry

Existing advances are reviewed rather than automatically accepted. Second-position funding may be available for 3–9 months, but the combined payments must still be manageable. A weaker file may receive a smaller amount or higher factor rate.

## How the application can affect credit

| Stage | Possible credit effect |
|---|---|
| Application | {{INITIAL_CREDIT_PULL_POLICY}} A hard pull occurs {{HARD_PULL_POLICY}}. |
| Normal remittances | {{ROUTINE_CREDIT_REPORTING_POLICY}} An MCA should not be assumed to build credit like a standard loan. |
| Default | Collections or a court judgment may affect business or personal credit, depending on the agreement and guarantee. |

“No credit check at all” is not a promise we make unless that is what the written process truly provides. Credit is one part of the review, not the only part.

## Documents to prepare

We require evidence of business deposits. Be ready to provide:

- Three months of business bank statements or secure transaction access
- Processor statements when requested
- Government-issued identification
- EIN and legal business details
- Voided check or bank account details
- Records for existing business financing, if any

There is no legitimate way to underwrite an MCA without confirming revenue.

# From application to funding in five steps

1. **Complete the online application.**
2. **Upload three months of bank statements or connect your account securely.**
3. **Receive a written offer.**
4. **Review and sign the agreement electronically.**
5. **Receive funds and begin remittances.**

The offer shows the purchase price, purchased amount, factor rate, payment amount, payment frequency, estimated term and fees.

Reviewing an offer does not require you to accept it. You may send it to your accountant or advisor. You can also call [(855) 442-3423](tel:8554423423), and a Funding Advisor will walk through every line with you.

[Apply for a Merchant Cash Advance]

# When an MCA makes business sense

An MCA can make sense when the need cannot wait and the return is easy to measure.

Suppose $30,000 of seasonal inventory will produce $45,000 in sales and $12,000 in gross profit after product costs. If the advance costs $8,000 and the goods are likely to sell during a firm seasonal window, the timing may justify the expense.

The same logic can apply to payroll timing, a revenue-critical repair or an order with a deadline. The use should be short term, the return should be reasonable and the timing advantage should be worth the added cost.

## When we would suggest another option

An MCA is usually the wrong tool when:

- The investment may take years to produce a return.
- Revenue is already falling.
- A new advance would mainly pay an old advance.
- A term loan or line of credit can arrive in time at a lower cost.

Avoid stacking when possible. Stacking means taking overlapping advances from multiple providers. It adds payment pressure and may break restrictions in your agreements.

## Benefits and drawbacks

| Benefits | Drawbacks |
|---|---|
| **Fast process:** Decisions may take 2–5 business hours, with funding in as little as one business day. | **Higher cost:** An MCA usually costs more than a bank loan. We show the factor rate, dollar cost, fees and payment before signing. |
| **Sales matter:** Revenue and account health carry more weight than credit alone. | **Frequent payments:** Daily or weekly remittances reduce working cash. We review the payment against deposits before approval. |
| **No conventional collateral:** You do not have to pledge a specific vehicle, machine or property. | **Early payoff may save less:** The purchased amount is fixed unless your offer includes an early-payoff discount. |
| **Broad business use:** Spend the money on any lawful business need. | **Revenue limits the amount:** We will not treat a small stream of deposits as support for a large advance. |
| **Sales-based options:** A percentage holdback may fall when card sales fall. | **Poor long-term fit:** Large projects with a slow return usually need longer, less expensive financing. |

## Compare your funding options

| Product | Speed | Main qualification basis | Relative cost | Payment structure | Best use |
|---|---|---|---|---|---|
| Merchant cash advance | Fast | Sales, deposits and cash flow | High | Daily or weekly | Urgent, short-term needs |
| [Term loan]({{TERM_LOAN_URL}}) | Moderate | Credit, cash flow and history | Low to medium | Fixed installments | Planned investment |
| [Business line of credit]({{LINE_OF_CREDIT_URL}}) | Fast to moderate | Credit and cash flow | Medium | Pay for funds drawn | Repeat or uneven needs |
| SBA loan | Slow | Strong file and detailed review | Usually low | Monthly | Long-term growth |
| Invoice factoring | Fast | Quality of unpaid invoices | Medium to high | Repaid from invoices | B2B cash-flow gaps |
| Business credit card | Fast | Personal and business credit | Medium to high | Revolving monthly balance | Small repeat purchases |
| Revenue-based financing | Moderate | Recurring revenue | Medium to high | Monthly revenue-linked payment | Predictable recurring sales |

If you qualify for a term loan or line of credit and can wait, it will generally be the better choice. An MCA earns its place when time matters and the business return supports the cost.

# What to check before signing

Do not compare offers by the headline amount alone. Confirm all of these points:

- Net cash deposited after deductions
- Total purchased amount
- Factor rate
- Daily or weekly remittance
- Estimated term
- Reconciliation right
- Personal guarantee
- UCC lien
- Confession of judgment
- Early-payoff discount or penalty
- Limits on additional financing
- Broker or direct-funder status
- Broker fee or compensation

Our personal-guarantee policy is {{PERSONAL_GUARANTEE_POLICY}}. Our UCC lien policy is {{UCC_LIEN_POLICY}}. Our agreements {{CONFESSION_OF_JUDGMENT_POLICY}}.

Greenbox Capital provides funding directly. Every offer discloses the amount funded, purchased amount, factor rate, payment schedule, estimated term and applicable fees.

## A short MCA glossary

| Term | Meaning |
|---|---|
| Purchase price | The amount provided to your business |
| Purchased amount | The total future receivables we are buying |
| Factor rate | The multiplier used to find the purchased amount |
| Holdback | The percentage of sales sent as remittances |
| Remittance | A daily or weekly amount sent to the funder |
| Estimated term | The expected time to complete remittances |

Compare offers in total dollars, daily cash-flow impact and an annualized rate. One offer can have a lower payment but cost more because it lasts longer.

## How to recognize a legitimate provider

A responsible provider gives you:

- Full factor-rate, fee and payment details before signing
- A complete written agreement
- No guaranteed-approval promise
- No surprise demand for money before funding
- Clear credit-check language
- Checkable independent reviews
- Clear broker or direct-funder disclosure
- Enough time to read the agreement

Be careful when someone will not send the full agreement, hides fees or pressures you to sign at once.

An MCA is a commercial purchase of receivables, not a federally regulated consumer or business loan. It is not subject to a standard loan interest-rate cap. Some states require commercial financing disclosures or restrict confessions of judgment. We provide the same core cost details in every written offer, even where a specific state form is not required.

## What happens if the business cannot remit as planned?

Ignoring the problem makes it worse. Depending on the contract, default may lead to collections, enforcement of a personal guarantee, a UCC claim against business assets or a court judgment. Some providers also use confessions of judgment or account restrictions.

Contact our funding team as soon as sales begin to fall. Our hardship process includes {{HARDSHIP_ADJUSTMENT_PAUSE_AND_RESTRUCTURING_POLICY}}. We will review actual sales and the agreement before explaining the available options.

An SBA loan generally cannot be used to refinance an MCA because an MCA is a purchase of receivables rather than conventional debt. Possible alternatives may include a business term loan, specialty refinance provider or negotiated restructuring, subject to approval and the current agreement.

# Reviews from funded business owners

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> “{{VERIFIED_RESTAURANT_OWNER_QUOTE_ABOUT_USE_AND_SPEED}}”

> “{{VERIFIED_RETAIL_OR_MEDICAL_OWNER_QUOTE_ABOUT_USE_AND_SPEED}}”

[Read verified customer reviews]({{INDEPENDENT_REVIEW_PAGE_URL}})

# Review your offer without pressure

[Apply Now] or call [(855) 442-3423](tel:8554423423) during {{FUNDING_SPECIALIST_HOURS}}. Applying {{INITIAL_CREDIT_PULL_POLICY}} and does not require you to accept an offer.