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5 Best Business (Merchant) Cash Advances in 2024

Compare some of the best business cash advances for businesses of all kinds with options for a range of credit scores.

A business cash advance — also known as a revenue advance or merchant cash advance — is a way to borrow a lump sum based on your future sales or revenue. Requirements are generally more lenient than other types of business financing, and funding is typically fast, making it an option for newer businesses or those with less-than-perfect credit. But this type of funding can be expensive so it’s important to compare multiple lenders to find the best deal.

Consider our top picks for business cash advances, including a wide range of advance amounts, loan terms and rates.

Name Product USFBL Filter Values Min. Amount Max. Amount APR Requirements
Lendio business loans
Finder Score: 4.8 / 5: ★★★★★
Lendio logo
$1,000
$10,000,000
Varies by lender
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 520 personal credit score, at least $8,000 in monthly revenue.
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
American Express® Business Line of Credit
Finder Score: 4.4 / 5: ★★★★★
American Express logo
$2,000
$250,000
N/A
Minimum FICO score of at least 660 at the time of application, have started your business at least a year ago, and an average monthly revenue of at least $3,000
Access lines of credit for your small business even if you aren't currently an Amex customer.
Fundera business loans
Finder Score: 4.9 / 5: ★★★★★
Fundera logo
$2,500
$5,000,000
Varies based on lenders
$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months
Get connected with short-term funding, SBA loans, lines of credit and more.
SMB Compass
Finder Score: 4.4 / 5: ★★★★★
SMB Compass logo
$25,000
$5,000,000
Starting at 5.99%
2 years in business, $25,000 monthly revenue, business bank account
Enjoy personalized solutions and a consultative approach for businesses with at least $25,000 in monthly revenue.
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Best business cash advances

Best for comparing lenders

Lendio business loans

4.8
★★★★★

Finder score

Go to site Read review
Loan amountup to $2 million
Starting Factor Rate1.08
Min. Credit Score500

Best for startups

Fora Financial business loans

4.5
★★★★★

Finder score

Go to site Read review
Loan amount$5,000 – $1,500,000
APRVaries
Min. Credit Score570

Best for low rates

Credibly business financing

3.8
★★★★★

Finder score

Read review
Loan amount$5,000 to $600,000
Starting Factor Rate1.11
Min. Credit Score500

Best for businesses with high revenues

Libertas Funding

Loan amountup to $5 million
Min. Credit Score630

Best for self-employed workers

Giggle Finance

Loan amountUp to $5,000

Methodology: How we choose these lenders

Finder’s business loan experts analyzed dozens of lenders offering business cash advances. We ultimately chose lenders with competitive rates, fast funding, and flexible repayment terms.

Some of the criteria we used to evaluate lenders include:

  • Interest/factor rates
  • Additional fees
  • Advance amounts
  • Loan terms
  • Repayment plans
  • Turnaround times
  • Time in business requirements
  • Revenue requirements
  • Credit score requirements
  • Reputation of the lender

How to compare business cash advances

It’s a good idea to compare multiple lenders that offer business cash advances and consider the following factors before deciding.

  • Rates. Business cash advances typically charge a factor rate rather than interest, and rates can be rather high for this type of financing.
  • Fees. Some lenders also charge additional fees such as setup, administration or service fees, among others. To save money, look for a lender that charges minimal fees.
  • Turnaround times. Funding is typically fast for business cash advances, with some offering loans as quick as the same day you apply, although others may take a few days.
  • Loan terms. Most business cash advances have loan terms of 12 months or less, but a few stretch as far as three years if you need a longer term.
  • Repayment terms. Advances often require weekly or daily repayment schedules, but some lenders offer bi-weekly or monthly repayment terms, which may make budgeting easier.
  • Lender requirements. As you compare lenders, keep a close eye on credit score, revenue and time in business requirements to make sure you meet the criteria. Otherwise, you may look for business loans that fit your specific needs, such as business loans for startups or without a credit check.

What is a business cash advance and how does it work?

A business cash advance — sometimes referred to as a merchant cash advance or revenue advance — is an advance based on future sales or revenue. The advance comes as a lump sum payment, and you agree to pay it back through a percentage of your incoming sales.

Most commonly, repayments are deducted automatically from your account weekly or daily, although some agreements may allow for bi-weekly or monthly repayments. Terms are generally short for business cash advances — usually three to 12 months — but some lenders may offer longer terms.

For the most part, revenue advances are not renewable — like business lines of credit — but some lenders advance additional funds after paying off a percentage of your original loan. And, while there isn’t usually an incentive to repay business cash advances early, there are a few lenders, like Fora Financial, for example, that give discounts for early repayment.

Pros and cons of business cash advances

Consider the advantages and disadvantages of business cash advances.

Pros

  • Typically fast funding
  • More lenient requirements to qualify
  • High advance amounts available
  • Flexible repayment options

Cons

  • An expensive form of business funding
  • Loan terms are typically short
  • May require daily repayments
  • Limited benefits to repaying early

Types of business loans

A business cash advance is an expensive form of funding. You may want to consider these other types of loans for small businesses.

TypeTypical loan amountsTypical term lengthsBest for
SBA Loans$13,000 to $5 millionUp to 25 yearsEstablished businesses with decent credit that don’t qualify for other types of funding
Equipment financingUp to 100% of the cost of the equipment3 to 10 yearsBusinesses that need heavy equipment or other expensive machinery
Term loansUp to $2 million1 to 10 yearsBusinesses with good credit looking for large loan amounts and predictable monthly payments
Business lines of credit$2,000 to $250,0006 months to 5 yearsBusinesses looking for immediate short-term funding or want a renewable lending source
Microloans$500 to $50,000Up to 6 yearsStartup businesses or women- or minority-owned firms
Invoice factoring70% to 90% of unpaid invoices1 to 3 monthsB2B companies with a lot of outstanding invoices
Invoice financing70% to 80% of unpaid invoices1 to 3 monthsB2B companies with a lot of outstanding invoices

How to qualify for a business cash advance

The exact requirements to qualify can vary significantly by lender, but you’ll typically need to meet the following minimum criteria:

  • Six months or more in business
  • $10,000+ in monthly revenue
  • Business checking account

Some lenders may also check your credit, although it may only be a soft pull. But in general, your credit score isn’t as heavily weighted for business cash advances as it is with other types of business financing.

How to apply for a business cash advance

In general, the application process for a business cash advance goes as follows:

  1. Fill out a simple online application.
  2. Submit the required documentation.
  3. Review your offer and sign your agreement.
  4. Get funded and follow the repayment plan.

Some lenders may require an extra step where you talk to a lending specialist prior to funding, but that’s not always the case.

Alternatives to business cash advances

Because business cash advances are generally one of the more expensive forms of business financing, you may want to consider a few other options.

  • Online business loans. If you’re struggling to qualify for traditional bank loans, you may have better luck looking into online business loans instead. They typically have more lenient requirements than banks and offer more affordable financing than revenue advances.
  • Invoice factoring or financing. If you sell to other businesses or government agencies, invoice factoring or invoice financing could be a good option. Like business cash advances, requirements are usually more lenient than other types of loans, but selling your invoices can also be quite expensive.
  • Business line of credit. A business line of credit is another good option to cover cash flow needs — and it’s renewable and more affordable — but requirements to qualify may be more strict.
  • Equipment financing. If your goal for the cash advance is to buy equipment or machinery, an equipment loan may be a better move. The equipment acts as collateral for the loan, so you might qualify even if your credit isn’t ideal.

Frequently asked questions

Is a business cash advance a good idea?

Business cash advances are generally quite expensive, but they may be an option if you can’t qualify for other types of business funding. However, the repayment plans can be rigorous, so be sure the payments fit your budget.

Will a business cash advance hurt my credit?

If the lender requires a hard credit pull as part of the application process, your score might drop a few points. However, lenders that offer revenue advances generally don’t report to the credit bureaus, so even if you can’t make your payments, there shouldn’t be any impact on your credit score.

Megan B. Shepherd's headshot
To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd as part of our fact-checking process.
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Written by

Writer

Lacey Stark is a freelance personal finance writer for Finder, specializing in banking, loans, investing, estate planning, and more. She has 20 years of experience writing and editing for magazines, newspapers, and online publications. A word nerd from childhood, Lacey officially got her start reporting on live sporting events and moved on to cover topics such as construction, technology, and travel before finding her niche in personal finance. Originally from New England, she received her bachelor’s degree from the University of Denver and completed a postgraduate journalism program at Metropolitan State University also in Denver. She currently lives in Chicagoland with her dog Chunk and likes to read and play golf. See full bio

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