Merchant Cash Advance with Lends Well

Apply in as little as 6 minutes and hear from a dedicated loan specialist within one hour.


Anticipated duration between 3 months to 18 months


Factor rates as low as 1.152

Advance from $5,000 up to $400,000

Applying won’t affect your credit score!*

Why a Merchant Cash Advance?

Lends Well and our network of partner lenders are here to help you navigate through the confusing world of Merchant Cash Advances. Merchant cash advances can be a good fit for small businesses that are seasonal or have fluctuating revenue and want to inject funds into their business. You’ll get a lump sum upfront and pay with a percentage of your future credit and debit sales, so that your payments are not more than what you make.

This could be a good option for small businesses needing a cash advance while still working on their credit health.


Since 2011, Lends Well has helped businesses in over 700 industries access the capital they need.

Over $10 billion lent to 50,000 small businesses national.

Pros and Cons of a Merchant Cash Advance


  • You don’t need a perfect credit score to qualify

  • You can get access to financing quickly


  • You’ll get a decision fast with a simple approval process


  • Daily payments can make cash flow harder to predict compared to other financing options

  • Fees can be higher compared to other financing options like SBA or term loans


  • Funding amount may be based on your credit and debit card sales

You deserve better business finance

Lends Well was created with a big idea: to revolutionize the outdated lending system and build a better deal for small businesses. With one 6 minute application we can help you find the right financing options for your needs, from lines of credit to term loans, cash advance and even Small Business Administration (SBA) loans.

Let's get started.


Start your online application

Apply online in 6 minutes with one simple application.


Review your options

Your dedicated Account Manager will contact you as soon as possible to review your needs and help you find the best funding option for your business.


Get funded

Get a decision in as little as 24 hours and funding as soon as the next day accepting an offer.

Merchant Cash Advance Frequently Asked Questions

What is a merchant cash advance?

A merchant cash advance (MCA) is a type of non-loan business financing. A merchant cash advance company will purchase a percentage of your future sales. This offers you a lump sum advance that you’ll generally repay with daily or weekly payments based on your business’s sales for the day or week. Merchant cash advances can be a good option for new and small businesses, as qualifying may be largely based on your business’s sales rather than credit or collateral.

How does a merchant cash advance work?

Merchant cash advances work by allowing you to sell a portion of your business’s future sales. Because merchant cash advances aren’t loans, you won’t see specific repayment terms or interest rates. Instead, your payments depend on your sales, which can be helpful during a slow season when you might have trouble repaying a traditional loan. However, the sale-based repayments can also eat into your cash flow, particularly with low-margin businesses. You’ll want to review the terms carefully; merchant cash advances are not loans, therefore state and federal usury and lending laws may not apply.

What is a factor rate?

Your merchant cash advance’s factor rate will determine how much you repay for your advance. For example, with a 1.3 factor rate, for every $1,000 you receive, you’ll need to repay $1,300. Factor rates generally range from about 1.1 to 1.6, depending on your business’s creditworthiness and finances.

What can I use a merchant cash advance for?

Merchant cash advances can be used for almost any business expense. However, they’re often best used for short-term operating expenses, such as purchasing inventory or payroll. The speed and ease with which you can get the funds may also make them an option for emergency expenses.

What kind of businesses are best suited for merchant cash advance?

Merchant cash advances are best suited for businesses that are new or don’t have good credit, and that have high-margin credit and debit card sales. You may need to meet some basic requirements, such as being in business for at least six months and having a credit score of at least 500. However, there’s no collateral required, and businesses largely qualify for merchant cash advances based on their expected future sales.

Is there an application fee?

Merchant cash advances generally don’t charge application fees. However, merchant cash advance companies may charge an advance or origination fee on the amount you receive. Thus, there may be monthly admin or maintenance fees for as long as it takes you to repay the advance. The advance you receive may also be called a fee because it’s not a loan.

Can I prepay and is there a prepayment penalty?

Merchant cash advances don’t have a prepayment penalty, but you also won’t necessarily save money by prepaying your MCA. Unlike a loan that accrues interest over time, your factor rate and repayment amount are determined upfront. Prepaying may save you money on monthly administration fees, but it won’t save you money on the cost of factor rate charges.

How does repayment work?

Repaying a merchant cash advance can be set up in several ways and you may need to change your credit card processor or terminal if the merchant cash advance company doesn’t work with your current provider. Your MCA will have a “holdback” amount, which is often around 10% to 20%. At the end of each day or week, your processor will automatically send that percentage of sales to the merchant cash advance company and the rest to your account. Alternatively, there are ACH MCAs, which can work even if you don’t have debit or credit card sales. With this arrangement, the merchant cash advance company withdraws a fixed amount from your business bank account daily or weekly.

What are the pros of a merchant cash advance?

A merchant cash advance can be easy to apply and get approved for, letting you quickly get cash for your business. The advance is also unsecured, meaning you don’t have to put up or risk personal or business assets as collateral, and you can use the advance for almost anything. Also, because the payments are tied to your sales, you won’t have to pay as much during slow periods.

What are the pros of a merchant cash advance?

Merchant cash advances aren’t a great fit for every business or situation. The fees and factor-rate structure means you could wind up repaying a lot of money. While MCAs aren’t loans and don’t have an annual percentage rate (APR), an equivalent loan could have an APR of around 40% to well over 100%. Even if your business is thriving and you pay off the advance early, there’s little benefit to doing so, and the larger payments can hurt your cash flow.

1 If your business is organized as a general partnership, your credit score may be impacted.

2 Best factor rates available to merchants with excellent credit and financial strength and subject to approval by partner lender(s).

3 Approval and funding times may vary between lending partners.