Merchant Cash Advances (MCA)

Merchant cash advances (MCA) provide immediate working capital by purchasing a portion of your future credit card sales. A merchant cash advance for a small business works differently from traditional loans because repayment comes automatically from your daily sales rather than fixed monthly payments. Los Angeles Premiere Business Loans specializes in evaluating each business individually to find the right MCA solution that matches your cash flow patterns and growth needs.


We help you understand MCA loan requirements and guide you through the decision-making process to determine if merchant cash advances fit your situation better than traditional financing. Our team explains merchant cash advance rates, repayment terms, and the key differences in MCA vs business loan structures. When you need fast access to working capital and have consistent credit card sales, our MCA experts provide customized solutions that work with your business's unique revenue patterns.

MCA Consultation Services We Provide

We offer comprehensive consultation and evaluation services to help businesses understand merchant cash advances and determine if this financing option aligns with their operational needs. Our approach focuses on analyzing your specific business situation rather than offering one-size-fits-all solutions.

Business Revenue Analysis and MCA Suitability Assessment


We review your credit card processing volumes, seasonal patterns, and cash flow trends to determine if merchant cash advances make financial sense for your business. Our team analyzes your average daily sales, peak and slow periods, and overall revenue stability to calculate realistic advance amounts and repayment scenarios.


This assessment helps you understand exactly how MCA repayment would affect your daily cash flow and business operations. We provide clear projections showing how different advance amounts would impact your business finances over various timeframes.

MCA Loan Requirements Evaluation


We evaluate your business against standard MCA loan requirements including minimum monthly revenue, time in business, and credit card processing history. Our team reviews your business documentation, processing statements, and operational history to identify any potential qualification issues before you apply.


We help you understand what lenders look for and prepare your application to present your business in the best possible light. This evaluation process saves you time by focusing only on MCA options where you have strong approval chances.

Merchant Cash Advance Rates and Terms Analysis


We explain how merchant cash advance rates work differently from traditional loan interest, helping you understand factor rates, holdback percentages, and total cost calculations. Our team shows you how to compare different MCA offers by calculating the true cost and effective annual percentage rates.


We analyze various term lengths and repayment structures to find options that align with your cash flow capacity and business goals. This analysis ensures you fully understand the financial commitment before moving forward with any MCA provider.

Custom MCA Solutions Development


We work with multiple MCA providers to find solutions tailored to your specific business needs, industry, and financial situation. Our team negotiates terms and structures that work for your business rather than forcing you into standard programs that might not fit.


 We can arrange split-funding options, seasonal adjustments, or other customized features based on your unique circumstances. This personalized approach helps ensure your MCA solution supports your business growth rather than creating financial strain.

Benefits of Working With Our MCA Experts

Our consultation approach helps you avoid common MCA pitfalls while finding solutions that truly benefit your business operations and growth plans. We provide objective guidance throughout the entire evaluation and selection process.

Expert Guidance on MCA vs Business Loan Decisions


We help you compare merchant cash advances against traditional business loans, lines of credit, and other financing options to find the best fit. Our team explains the pros and cons of each option based on your specific situation, not generic sales pitches. You get honest advice about when MCAs make sense and when other financing might serve you better.

Transparent Analysis of MCA Loan Pros and Cons


We provide balanced analysis of merchant cash advance benefits and drawbacks specific to your business situation and industry. Our team explains both the advantages of fast funding and flexible repayment alongside the potential challenges of higher costs and daily collections. You understand exactly what you're getting into before committing to any MCA arrangement. 

Ongoing Support Throughout the MCA Process


We provide guidance from initial evaluation through funding and help you manage your MCA relationship effectively once funded. Our team remains available to answer questions, help with any issues that arise, or discuss additional funding needs as your business grows. We monitor your MCA performance and can suggest adjustments or refinancing options when beneficial. 

Understanding Merchant Cash Advance Structures


MCA arrangements involve several components that work differently from traditional business loans.


How Merchant Cash Advance Repayment Terms Work


Merchant cash advance repayment comes from a percentage of your daily credit card sales rather than fixed monthly payments like traditional loans. The MCA provider automatically collects their percentage each day through your credit card processor, with collections varying based on your actual sales volume.


Factor Rates vs Interest Rates in MCA Pricing


MCAs use factor rates instead of traditional interest rates, with factors typically ranging from 1.1 to 1.5 times the advance amount. A factor rate of 1.3 means you'll repay $1.30 for every dollar advanced, regardless of how long repayment takes.


Daily Sales Percentage and Holdback Amounts


MCA providers typically collect 10-20% of your daily credit card sales, called the holdback percentage, until the advance is fully repaid. Higher holdback percentages mean faster repayment but more impact on your daily cash flow, while lower percentages extend repayment timelines.

Frequently Asked Questions

  • How quickly can I get funded with a merchant cash advance?

    Most MCA providers can fund your business within 1-3 business days after approval, making it one of the fastest financing options available. The speed comes from simplified underwriting that focuses on your sales volume rather than extensive financial documentation.

  • What happens if my credit card sales are lower than expected during MCA repayment?

    When sales are slow, your daily payments automatically decrease since they're based on a percentage of actual transactions. This built-in flexibility means you pay less during tough periods, though it extends your repayment timeline until sales recover.

  • Can I pay off my merchant cash advance early to save on costs?

    Most MCAs allow early payoff, though some providers charge prepayment penalties while others offer discounts for early repayment. The factor rate structure means paying early can significantly reduce your total cost compared to letting it run the full term.

  • What types of businesses work best with merchant cash advances?

    Businesses with consistent daily credit card sales like restaurants, retail stores, salons, and service companies typically benefit most from MCAs. Seasonal businesses or those with irregular sales patterns may find the daily collection structure more challenging to manage.

  • Do merchant cash advances affect my business credit score?

    MCAs typically don't report to business credit bureaus during normal repayment, so they won't help build your credit history. However, defaults or legal actions from unpaid MCAs can negatively impact your credit, making it important to ensure you can handle the daily payments.