Merchant Cash Advance Requirements: What You Need to Qualify

Quick answer: Most merchant cash advance funders look for a business that has been operating for at least 6 months (some accept 3), brings in roughly $10,000–$15,000 or more in monthly deposits, and has a business checking account in good standing. Credit matters less than with a bank loan; many funders consider scores in the 500s. You’ll typically need a short application, your last 3–4 months of bank statements, a photo ID and a voided check.

Typical Merchant Cash Advance Requirements

• Time in business: often 6 months or more. Some programs accept 3 months with strong revenue.
• Monthly revenue: commonly at least $10,000–$15,000 in deposits. Higher, steadier revenue means larger offers.
• Business bank account: a checking account in the business’s name with regular deposits.
• Credit score: considered, but not the deciding factor. Many funders work with scores in the 500s, and some have no hard minimum.
• No open bankruptcy: most funders won’t approve a business in active bankruptcy.
• Manageable existing advances: if you already have MCAs, the funder will check whether your revenue can support another. See getting a second MCA.

Documents You’ll Need

1. A completed application (usually a few minutes online)
2. Your most recent 3–4 months of business bank statements
3. A valid driver’s license or other photo ID
4. A voided business check
5. For larger amounts: business tax returns, financial statements or credit card processing statements

Our business loan documents checklist covers what to gather for other types of financing too.

What Underwriters Look For in Your Bank Statements

For an MCA, your bank statements matter more than anything else. Underwriters usually review:

• Average monthly deposits and whether they’re steady, growing or falling
• Number of deposits, since more frequent deposits show consistent sales
• Average daily balance, which shows how much cushion you keep
• Overdrafts, NSFs and negative-balance days, which signal cash flow strain
• Existing debits from other funders or lenders, which show how much of your revenue is already committed

How Much Can You Qualify For?

Offers are based mainly on revenue. Many businesses qualify for roughly the equivalent of one month of revenue, and businesses with strong, consistent deposits can qualify for more. For example, a business depositing $60,000 a month might see offers in the range of $40,000–$75,000, depending on its balances, history and existing advances. To understand what that money will cost, see how much a merchant cash advance costs.

How to Improve Your Chances of Approval

• Avoid overdrafts and NSFs in the months before you apply.
• Run all sales through your business account so your deposits reflect your true revenue.
• Apply for an amount that fits your revenue rather than the maximum.
• Be upfront about existing advances or loans. Underwriters will see them anyway.
• Apply with a direct funder so you get a decision faster and without extra broker fees.

Who Usually Qualifies

MCAs are common for businesses with steady daily or weekly sales, such as restaurants, retail stores, auto repair shops, salons, medical practices, trucking companies and contractors. Each funder has its own list of industries it won’t fund, so ask if you’re unsure.

Frequently Asked Questions

Can I get a merchant cash advance with bad credit?

Often, yes. Because approval is based mainly on revenue, many funders consider credit scores in the 500s. See business funding with a 500–550 credit score.

Do I need collateral for a merchant cash advance?

Usually not. MCAs are generally unsecured by specific assets, though most agreements include a UCC filing on your receivables and a personal guarantee.

Do I need tax returns for a merchant cash advance?

Usually not for smaller amounts. Most decisions are based on recent bank statements. Larger advances may require tax returns or financial statements. See business funding without tax returns.

Can a new business get a merchant cash advance?

Some funders work with businesses that have at least 3 months of steady deposits. Brand-new businesses with no sales history generally don’t qualify.

How fast is approval?

Decisions often come the same day, and many businesses are funded within 24–48 hours of approval. Ready to see your options? Apply with Brookestone Funding or call (877) 665-4209.