Flexible Funding That Flows With Your Business
For Dallas businesses with strong credit card sales, a Merchant Cash Advance (MCA) offers a unique financing solution. Instead of fixed monthly payments, your repayment automatically adjusts based on your daily sales volume.
How Merchant Cash Advance Works
Unlike traditional loans with fixed payment schedules, an MCA works differently:
- You receive a lump sum of capital upfront
- We purchase a portion of your future sales at a discount
- Repayment happens automatically as a percentage of daily card transactions
This structure means your payments naturally align with your cash flow. During busy periods, you pay more. During slow periods, you pay less.
Understanding the Holdback Rate
The holdback rate is the percentage of your daily credit and debit card sales that goes toward repayment. Typical holdback rates range from 10-20%.
Example: If your holdback rate is 15% and you process $2,000 in card sales today, $300 automatically goes toward your MCA repayment.
Why Dallas Businesses Choose MCA
Cash Flow Protection
Traditional loans require the same payment whether you have a $10,000 day or a $1,000 day. With MCA, your payments scale with your revenue, protecting your cash flow during slower periods.
Speed of Funding
MCA funding is among the fastest in the alternative lending space. Once approved, you can typically receive funds within 24-48 hours.
Credit Flexibility
While we do consider credit history, strong card sales volume is the primary qualification factor. Many businesses with lower credit scores qualify for MCA when they can’t get traditional financing.
No Fixed Assets Required
Your future receivables serve as the basis for the advance. You don’t need to pledge equipment, real estate, or other collateral.
Ideal Industries for MCA
Merchant cash advances work best for businesses with consistent credit card processing volume. Learn more about the best industries for merchant cash advance funding.
- Restaurants and bars - Steady card transactions from customers
- Retail stores - Regular card payments for merchandise
- Salons and spas - Service-based card transactions
- Medical and dental practices - Patient payments via card
- Auto repair shops - Card payments for services and parts
- Hospitality businesses - Hotels, event venues, caterers
MCA vs. Traditional Business Loans
| Feature | Merchant Cash Advance | Traditional Loan |
|---|---|---|
| Repayment | % of daily card sales | Fixed monthly payment |
| Speed | 24-48 hours typical | 2-8 weeks |
| Collateral | Future sales | Often required |
| Credit Focus | Card sales volume | Credit score |
| Cash Flow Impact | Flexible | Fixed obligation |
What You Need to Qualify
To be considered for a merchant cash advance, your business typically needs:
- Time in business: Minimum 6 months
- Monthly revenue: At least $15,000
- Card processing: Consistent credit/debit card sales history
- Business bank account: Active account in good standing
Understanding MCA Costs
MCA uses factor rates rather than interest rates. A factor rate of 1.20 means you repay 1.20x your advance amount.
Example: A $50,000 advance with a 1.20 factor rate = $60,000 total repayment
The effective cost varies based on how quickly you repay. Faster repayment (more sales) means you pay off sooner, while slower periods extend the repayment timeline.
Is MCA Right for Your Business?
MCA is an excellent fit if you:
- Process significant credit/debit card volume regularly
- Need fast access to capital
- Prefer payments that flex with your sales
- Have been declined for traditional financing
- Don’t want to pledge business assets as collateral
For businesses with primarily cash or check revenue, or those seeking longer-term financing with lower costs, our working capital loans or SBA loan programs may be better options.
Get Started Today
Ready to see if MCA is right for your Dallas business? Our team can review your card processing history and provide funding options within hours.
The application is simple, and there’s no obligation to proceed. See what you qualify for today.