Working capital helps a business cover the everyday gap between money going out and money coming in. Merchant cash advances (MCA) and similar working capital products are built for speed and flexibility, and they are worth understanding clearly before you decide. No hard credit pull to start.
Working capital products cover short-term needs like payroll, inventory or a slow season and are often repaid from future sales or deposits. A merchant cash advance is a purchase of future receivables, repaid as a share of sales or a fixed daily or weekly amount. Always compare the total amount repaid, not just the amount received.
By Robbie Garvey, Founder · Last updated
What this means: Short-term money for day-to-day costs, often repaid from future sales.
New to these words? See the glossary. Every decision and every term comes from the lender.
Working capital is the money a business uses to keep running day to day: payroll, inventory, rent, marketing, repairs and the small surprises in between. Even profitable businesses can run short when customers pay late, a season starts slow, or a big order requires buying materials before getting paid.
Working capital products are designed to bridge those timing gaps. They are usually shorter in term than traditional loans and are often repaid from future sales or deposits. That makes them useful for near-term needs, and it also means the structure deserves a careful look before you sign.
With a merchant cash advance, a provider purchases a portion of your future receivables in exchange for capital now. Repayment typically comes as a percentage of daily or weekly sales, or as a fixed daily or weekly amount drawn from your business account. Because payments track your sales or follow a set schedule, it is important to understand exactly how much will be repaid in total and how often.
MCAs and similar products often look more closely at deposits and revenue than at credit scores alone, which can make them an option for owners who have been turned away elsewhere. They can also cost more than longer-term options, so we encourage every owner to compare the total payback, not just the amount received. Our guide on how to spot a bad offer covers the questions to ask.
Working capital can make sense when there is a clear, short-term use with a clear return: stocking up before a busy season, taking on a large contract, covering payroll while a big invoice clears, or handling an urgent repair that keeps the doors open.
It is usually less suited to long-term investments like buying property or major equipment. For those, equipment financing, real estate financing or SBA and long-term options may line up better with how long the investment pays off. If your need is ongoing rather than one-time, a business line of credit may be worth comparing.
Most working capital providers want to see recent business bank statements, usually three to six months, along with a short application and ID. Time in business and steady monthly deposits tend to matter more than collateral. If you invoice other businesses and wait on payment, invoice factoring is another way to unlock cash tied up in receivables.
We are a broker, not a lender, so our job is to help you see your options side by side and read the terms. We will tell you if we think a working capital product is not the right tool, and you are never obligated to accept an offer. When it feels right, start with a short application or give us a call.
Compare line of credit options side by side.
Reusable credit sized around your business deposits and revenue.
Turn unpaid invoices into cash now, so slow-paying customers don't slow you down.
Credit shapes the options open to you. See how lenders look at it, check where you stand and find help if you need it.
Many MCAs are structured as a purchase of future receivables rather than a loan. The agreement will explain the structure, and we can walk through it with you.
Timing depends on the provider and how quickly documents are ready. We give honest expectations once we understand your situation.
Working capital providers often focus on revenue and deposits. Credit still matters to some providers, and there is no hard credit pull to start.
Look at the total amount repaid, the payment frequency and amount, and any fees. We help you line offers up so they are easy to compare.
Applying is free and takes a few minutes. Here is what to expect, step by step.
A short online application, or a call with our team. About the business, what the money is for and how much you have in mind.
My team and I review what you shared and call or text you, usually to ask a few questions and explain what we see.
Usually recent bank statements and your own credit report through our IdentityIQ link. No hard credit pull to start.
We shop your file with lending partners and walk you through any offers, including the total payback.
Take an offer or don't. There is never pressure, and you can stop at any point.
Timing depends on the option and the lender. We'll give you honest expectations once we know your situation. Rather talk first? Book a free 20-minute call.
A short, free application. No hard credit pull to start.
No pressure and no hard credit pulls to start. Tell us where your business stands, and we'll walk the options together.
