Merchant Cash Advance

A Merchant Cash Advance (MCA) provides upfront capital that you repay through a small percentage of your future credit and debit card sales. This flexible solution is ideal for Dallas businesses with strong card revenue looking for funding that automatically adjusts to their cash flow.

How Merchant Cash Advance Works

Unlike traditional loans with fixed monthly payments, an MCA ties your repayment directly to your business performance. Here’s the process:

1. Receive Your Advance

After approval, you receive a lump sum of capital deposited into your business account. Funding amounts range from $5,000 to $600,000 based on your card processing volume and business profile.

2. Automatic Repayment

A small, predetermined percentage of your daily credit and debit card sales is automatically remitted to repay the advance. This is called the “holdback rate” and typically ranges from 10-20% of daily card transactions.

3. Payments Adjust with Revenue

The beauty of an MCA is that payments scale with your business. Busy day? You pay more. Slow day? You pay less. This built-in flexibility protects your cash flow during slower periods.

Benefits of Merchant Cash Advance

Cash Flow Friendly

Traditional loans require the same payment whether you’re having your best month or your worst. MCA payments automatically adjust, ensuring you always have cash available for operations.

No Collateral Required

MCAs are unsecured funding based on your future sales. You don’t need to put up property, equipment, or other assets as collateral.

Fast Funding

Need capital quickly? MCA approvals often happen within 24 hours, with funding the same day. When opportunity knocks or emergencies arise, you can respond immediately.

Simple Qualification

MCAs focus on your card processing volume rather than traditional lending criteria. This makes them accessible to businesses that might not qualify for conventional bank loans.

Ideal Industries for MCA

Merchant cash advances work best for businesses with consistent credit card transactions. Dallas industries that commonly benefit include:

Restaurants and Food Service From food trucks to fine dining, restaurants rely heavily on card payments. MCAs help cover inventory, payroll, equipment repairs, and seasonal fluctuations.

Retail Stores Whether you’re a boutique in Deep Ellum or a shop in NorthPark, retail businesses can use MCAs for inventory purchases, store improvements, and marketing.

Auto Repair and Service Auto shops in the DFW area use MCAs to stock parts, purchase equipment, and manage the ups and downs of the repair business.

Salons and Spas Beauty businesses can fund renovations, new equipment, or marketing campaigns to grow their client base.

MCA vs. Traditional Loans

Feature	Merchant Cash Advance	Traditional Loan
Approval Time	24-48 hours	Weeks to months
Collateral	None required	Often required
Credit Score	500+ eligible	Usually 650+
Payments	Variable (% of sales)	Fixed monthly
Use of Funds	Unrestricted	May have restrictions

Understanding MCA Costs

MCA pricing uses a “factor rate” rather than an interest rate. Here’s how it works:

Factor Rate Example:

• Advance Amount: $50,000
• Factor Rate: 1.25
• Total Repayment: $50,000 x 1.25 = $62,500
• Cost of Capital: $12,500

The actual time to repay depends on your card processing volume. Higher sales mean faster repayment; slower periods extend the timeline.

Fees to Understand

• Origination Fee: Approximately 2.5% of the advance amount
• Administrative Fee: $50/month during the repayment period
• Factor Rate: Starting at 1.11 for qualified applicants

Eligibility Requirements

To qualify for a merchant cash advance with Equipment Financing Dallas Pros:

• 6+ months in business - Established track record
• $15,000+ monthly revenue - Sufficient cash flow
• 500+ FICO score - We work with challenged credit
• Consistent card processing - Regular credit/debit transactions
• Business bank account - For deposits and remittances

The Application Process

Step 1: Quick Application

Complete our online application in about 5 minutes. We’ll ask for basic business information and your card processing details.

Step 2: Document Review

Submit recent bank statements and credit card processing statements. Our team reviews your application with a focus on business performance, not just credit scores.

Step 3: Receive Offers

Get customized funding offers within 24 hours. Our specialists explain all terms clearly so you can make an informed decision.

Step 4: Get Funded

Once you accept an offer and sign the agreement, funds are deposited into your business account—often the same business day.

Frequently Asked Questions

How is an MCA different from a loan? An MCA is technically a purchase of future receivables, not a loan. You receive capital now in exchange for a portion of future card sales. This structure means different regulations and qualification criteria than traditional loans. Learn more in our MCA vs business loan comparison.

What’s a holdback rate? The holdback rate is the percentage of daily card sales remitted for repayment. For example, a 15% holdback means 15 cents of every dollar processed goes toward your advance.

Can I pay off early? Some MCA programs allow early payoff with reduced fees. Ask your funding specialist about early completion options.

What happens if I have slow days? Payments automatically decrease when sales are low. You won’t face fixed payment amounts that strain your cash flow during slower periods.

Ready to Apply?

If your Dallas business processes credit card transactions and needs flexible funding, a merchant cash advance could be the perfect solution. Get up to $600,000 with repayments that adjust to your sales volume.

Apply today and discover why thousands of DFW businesses choose Equipment Financing Dallas Pros for their funding needs.