What to do if sales slow and you can’t make your MCA payments: reconciliation, modifications, consolidation, and what happens in a default.
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The typical time in business, revenue, credit and documents you need to qualify for a merchant cash advance, plus how underwriters read your bank statements.
See exactly how merchant cash advance pricing works, with factor rate, total payback, payment and APR examples for $50,000 and $100,000 advances.
Daily merchant cash advance (MCA) payments are smaller and come out every business day. Weekly payments are bigger but come out once a week. The total you repay is usually the same either way. Daily payments suit businesses with steady daily sales, like restaurants and retail stores. Weekly payments suit businesses that get paid in larger, less frequent amounts, like contractors and B2B companies.
To consolidate multiple merchant cash advances (MCAs), you take one new advance or loan that pays off your existing balances, so you have a single payment instead of several. It works best when the new payment is lower than your current payments combined and spread over a longer term. Before you sign, compare the total payback of the new deal with what you still owe on your current advances.
Yes, you can often get a second merchant cash advance (MCA) while you're still paying off the first one. This is called a "second position" advance, or "stacking." Funders will approve it when your monthly revenue can comfortably cover both payments. But two daily or weekly payments can squeeze your cash flow fast, so a second advance makes sense only when it pays for something that brings in more revenue, not just to cover the first payment.
