Merchant cash advance

What is a merchant cash advance?

When you receive a merchant cash advance from TowersPay, we’ll provide you with a lump sum of capital in exchange for a percentage of your business’s future sales. That means you’ll receive working capital now and we’ll receive a percentage of your sales until the amount of sales we’ve purchased has been received.

Our financing advisors will work closely with you to create a financing plan that will help you grow your business without draining your cash flow. Business owners with a minimum average of $7,500 per month in sales over the last three months generally qualify for an MCA equal to 70-120% in the financing, from as little as $3,000 up to $500,000. We offer fixed and flexible payment schedules, and there is no fixed term.

merchant cash advance

Is a merchant cash advance right for me?

Merchant cash advances are suitable for a wide range of businesses, such as restaurants or retail stores whose revenue comes primarily from credit card sales. However, MCA rates are often higher than alternative types of business loans. These costs can lead to a debt cycle for some businesses if they have to refinance into another commercial cash advance to repay the debt, which can cause cash flow problems or put them at risk of default. Before turning to a commercial cash advance, small business owners can look for alternatives, such as a flexible line of credit from TowersPay.

How to get a merchant cash advance?



Gather 3 months of bank statements and other records. For faster approval, give us secure access to your bank account transaction data.
invoicing with credit card

Choose Financing

A financing advisor will contact you within 1 hour (during normal business hours) to complete your application and discuss your financing options.
invoice payment

Obtain Financing

Once you and your Funding Advisor determine which funding option works for your business, your funds can be approved and deposited within 24 hours.
invoice payment

Set Up Reimbursement

Payments will be automatically deducted from your company’s daily or weekly credit and debit card sales. Payment amounts will be based on your sales.
cash advance

Who should apply for a MCA?

Merchant cash advances are ideal for:

  • Businesses seeking fast funding – MCAs can be deposited in as little as 24 hours.
  • Businesses that process a lot of credit and debit card transactions
  • B2C businesses that need smaller amounts of funding
  • Businesses with lower credit scores
  • Business owners who do not have collateral, such as real estate and other assets

MCA can benefit restaurants, dental offices, lawyers, medical offices, gas stations, pharmacies, and more. Regardless of the industry in which you operate, our expert financing advisors will work closely with you to select the best financing option to help you achieve your business goals without sacrificing cash flow.

How to use a MCA?

There are no restrictions on how a merchant cash advance can be used. MCAs are generally best used to support growth strategies that will help increase your revenue, such as:


  • Taking advantage of time-sensitive opportunities to grow.
  • Expanding your marketing strategy
  • Purchasing inventory or raw materials in bulk
  • Upgrading equipment or technology.
  • Hiring new staff
  • Investing in training and continuing education

Merchant Cash Advance Rates

MCA use factor rates instead of a traditional interest rate. Factor rates are simple decimal figures that show how much “extra” you will owe on the original loan amount. Your factor rate is determined based on a risk assessment. Most factor rates are between 1.1 and 1.5.

Merchant Cash Advance Requirements

Traditional bank and SBA loans are generally only granted to wealthy business owners with extremely strong credit scores and properties. TowersPay has more flexible approval requirements that focus on the overall health of your business, not just your credit score. Your business must accept credit and debit card payments to qualify and no collateral is required.

Here are some factors we consider:

  • Business revenue
  • Cash flow
  • Vendor payment history
  • Years in business
  • Public Records
merchant cash

Merchant Cash Advance Q&A

Can I get a merchant cash advance with bad credit?
Yes, you may be able to get a merchant cash advance with bad credit if your business has a solid cash flow. Alternative lenders such as TowersPay have lower credit score requirements, generally starting around 550. Merchant cash advances, invoice factoring, and other alternative small business funds are ideal options for businesses with low credit scores.
Can I get a merchant cash advance without bank statements?
Some alternative lenders can approve a merchant cash advance without bank statements, but you can expect much higher rates. TowersPay requires three months of bank statements and other financial records.
What type of business qualifies for an MCA?
Any business that accepts credit and debit card payments can benefit from a merchant cash advance, regardless of industry. Our team of expert funding advisors will work with you to assess your eligibility.
How do I qualify for a merchant cash advance?
Every business is unique. It is always best to speak with one of our funding advisors to review your circumstances and assess your eligibility. In general, we look for consistent income with minimum monthly receipts of $7500 or more, and more than 6 months in business. We know that credit scores don’t tell the whole story, so we also consider the overall growth potential of your business.
Are there any restrictions on how the funds are used?
We do not restrict how you can use merchant cash advance funds. We believe small business owners have a better understanding of what they need to do to grow their businesses, so while our team can provide guidance, the final decision is yours.
What is the interest rate on a merchant cash advance?
A Merchant Cash Advance does not have an interest rate because it is not technically a loan. An MCA is an advance against future sales. The cost of the advance is called a “factor rate” and varies from business to business.