What is a factor rate and how does it differ from an interest rate?

A factor rate is a multiplier applied to your advance amount to determine the total repayment. For example, a $100,000 advance with a 1.30 factor rate means you repay $130,000 total. Unlike interest, which accrues over time and decreases as you pay down the balance, a factor rate is fixed from the start. This means the total cost does not decrease if you repay early unless your contract includes an early payoff discount.

Can I get an MCA if I have bad credit?

Yes. MCAs are one of the most accessible financing products for business owners with low credit scores. Approval is based primarily on your monthly bank deposits and revenue consistency rather than your personal credit score. Many MCA providers do not even check credit, and those that do use it as one of many factors rather than a primary qualifier.

How much of my daily revenue goes toward repayment?

The daily holdback typically ranges from 5% to 20% of your gross daily revenue or bank deposits. The exact percentage is set at the time of the agreement based on your revenue level and the advance terms. For fixed-payment MCAs, the daily debit is a set dollar amount rather than a percentage, which remains constant regardless of your daily sales.

Can I pay off my MCA early to save money?

This depends on your specific contract. Some MCA agreements include an early payoff discount, meaning the total repayment amount decreases if you pay early. Others do not offer any early payoff benefit — you owe the full factor rate amount regardless of how quickly you repay. Always confirm the early payoff terms before signing your agreement.

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Merchant Cash Advance

Fast working capital based on your future sales, with minimal paperwork, subject to funder approval.

LOAN RANGE

Subject to lender approval

TURNAROUND

Subject to lender approval

Best for businesses that need fast working capital and prefer revenue-based repayment over fixed monthly loan payments, subject to funder approval.

About Merchant Cash Advance

A Merchant Cash Advance (MCA) provides fast working capital to businesses based on future sales revenue rather than traditional credit metrics. Unlike a loan with fixed monthly payments, an MCA involves purchasing a portion of your future receivables at a discount. Repayment is automated through a small percentage of your daily credit card sales or bank deposits, which means payments flex up and down with your revenue.

MCAs are designed for speed and accessibility. Approval timelines vary by funder, and funding arrives as soon as the funder allows, subject to approval. The qualification process focuses on your monthly revenue and bank deposit history rather than credit scores, collateral, or years in business, making MCAs available to businesses that may not qualify for traditional financing.

Slate Financial works with MCA providers who offer transparent terms. While MCAs carry a higher cost of capital than traditional term loans, they serve an important role for businesses that need capital urgently, have been declined by banks, or prefer the flexibility of revenue-based repayment. Our team ensures you understand the total cost and structure before you commit, so you can make an informed decision.

How It Works

1Submit a brief application along with your last 4 months of business bank statements and a voided check. No tax returns or financial statements required.
2The underwriter reviews your average monthly deposits, daily balances, and revenue consistency to determine the advance amount and repayment structure.
3You receive an offer detailing the advance amount, factor rate, total repayment amount, estimated daily or weekly payment, and term length.
4Upon acceptance, a simple contract is executed and funds are deposited directly into your business bank account, subject to funder approval.
5Repayment begins automatically through daily or weekly ACH debits from your business account, calculated as a fixed percentage of your revenue or a fixed daily amount.

Who Qualifies

Minimum 4 months in business with an active business bank account
Average monthly bank deposits of $10,000 or more
No minimum credit score requirement (all credit types considered)
No open bankruptcies (prior discharged bankruptcies may be acceptable depending on timing)
Business must be based in the United States with a valid EIN or SSN

Typical Terms

Advance Amount	Subject to lender approval
Factor Rate	1.15 - 1.50
Repayment Term	3 - 18 months
Payment Frequency	Daily or weekly ACH debit
Holdback Percentage	5% - 20% of daily revenue
Time to Fund	Subject to funder approval

Pros & Cons

Advantages

+Fast funding, subject to funder approval

+No minimum credit score requirement; approval is based on revenue, not credit history

+Minimal documentation required — just bank statements and basic application

+Flexible repayment adjusts with your revenue so payments are lower during slow periods

Considerations

-Higher total cost of capital compared to traditional loans (factor rates of 1.15 to 1.50 translate to high APR equivalents)

-Daily or weekly automated debits can strain cash flow, especially during slow revenue periods

-Not a loan — you are selling a portion of future revenue, so the total payback amount is fixed regardless of how quickly you repay

-Stacking multiple MCAs can create a cycle of escalating payments that becomes difficult to manage

Ready to Apply for Merchant Cash Advance?

Fill out the application below and a funding advisor will reach out within 1 business day.

Application Form

All fields marked * are required. Your information is encrypted and secure.

Business Info

Business Legal Name *

DBA / Trade Name (if different)

Business EIN / Tax ID *

Business Type *

State of Incorporation *

Business Start Date *

Industry *

Business Street Address *

City *

State *

ZIP *

Business Phone *

Premises *

Monthly Rent / Mortgage

Financials

Average Monthly Revenue *

Gross Annual Revenue *

Average Monthly Bank Deposits *

Avg # of Deposits per Month *

Average Daily Bank Balance *

Negative / NSF Days per Month *

Do You Have Existing MCAs? *

Total Existing MCA Balance

Total Existing Daily/Weekly Payments

Loan Details

Amount Requested *

Use of Funds *

Owner Info

Owner Full Legal Name *

Ownership % *

Owner Email *

Owner Cell Phone *

Social Security Number *

Date of Birth *

Owner Home Address *

Estimated Personal FICO *

Second Owner

2nd Owner Full Legal Name (if 20%+ owner)

2nd Owner Ownership %

2nd Owner SSN

2nd Owner Date of Birth

How did you hear about us?

Document Upload

After submission, your advisor will send a secure upload link for required documents.

Credit Authorization

By checking the box below, I authorize Slate Financial and its designated partners to pull credit reports for the purpose of evaluating this funding application. I understand that:

A soft inquiry will be conducted on my personal credit (this will not impact my personal credit score)
A hard inquiry will be conducted on my business credit (this may be reflected on my business credit report)
These inquiries are used solely to assess eligibility for business funding products
My information will be kept confidential and used only for this application

I authorize Slate Financial to perform a soft credit pull to pre-qualify me, which does not affect my credit score. I understand a hard credit inquiry occurs only if I choose to move forward with a specific lender's offer, and that Slate will notify me before any hard pull.

Applicant Signature *

By drawing my signature and typing my full legal name below, I am electronically signing this funding application. I certify that the information provided is true and accurate, I authorize Slate Financial and its lending partners to verify it and pull credit as described above, and I agree that my electronic signature is the legal equivalent of my handwritten signature under the ESIGN Act and UETA.

Draw your signature

Sign here with your mouse or finger

Type your full legal name *I intend to sign this application electronically and agree my electronic signature is legally binding (ESIGN/UETA).

🔒 256-bit SSL encrypted · Your data is never sold

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Program Highlights

Approval based on revenue, not credit

No fixed monthly payments

Fast decisions

Flexible repayment

Required Documents

Have these ready to speed up your approval:

📄4 months business bank statements

📄Driver's license

📄Voided business check

📄1-page business application

Typical Timeline

Subject to lender approval

Timeline begins after all required documents are received and verified.

Need Help?

Talk to a funding advisor

📞 (843) 290-8928

Merchant Cash Advance

About Merchant Cash Advance

How It Works

Who Qualifies

Typical Terms

Pros & Cons

Ready to Apply for Merchant Cash Advance?

Application Form

Business Info

Financials

Loan Details

Owner Info

Second Owner

Credit Authorization

Applicant Signature *

Program Highlights

Required Documents

Typical Timeline

Frequently Asked Questions

Application Form

Business Info

Financials

Loan Details

Owner Info

Second Owner

Credit Authorization

Applicant Signature *