Business Cash Advance, Sized to Your Deposits

A business cash advance is a lump sum of $5,000–$500,000 provided in exchange for a fixed percentage of a business's future sales or deposits — repaid daily or weekly until a pre-agreed total is collected. It's the same core product as a merchant cash advance, just without the word "merchant" in front of it — a distinction that matters for businesses that don't primarily process card payments but still take in regular bank deposits. See the full merchant cash advance hub for how this compares to every other funding option. This page covers how the advance itself works and how to compare offers; if you're looking for a business loan with fixed monthly payments instead, that's a different product covered in merchant cash advance vs loan.

Business Cash Advance Options Compared

The right fit depends less on the label and more on how your business actually receives money — through card terminals, through direct bank deposits, or a mix of both.

What Makes This "Business" Rather Than "Merchant" Cash Advance

The word "merchant" historically referred to businesses processing card payments through a merchant account — retail, restaurants, salons. A business cash advance is the same underlying structure (an advance repaid as a fixed percentage of future receivables) but marketed to a wider range of businesses, including service businesses and B2B companies that receive payment via ACH, invoices, or direct deposit rather than card swipes. Providers underwrite these deals against bank deposit history instead of card processing statements, but the mechanics — a factor rate applied to the advance, repaid via a fixed daily or weekly pull — work the same way. Full mechanics of the underlying product: what is a merchant cash advance.

How the Advance and Repayment Work

1. A provider reviews 3-6 months of business bank statements (and card processing statements, if applicable).
2. You receive a lump sum, priced with a factor rate — typically 1.1 to 1.5 — that sets your total payback.
3. Repayment happens via a fixed daily or weekly ACH debit or percentage-of-deposits pull, continuing until the full amount is collected.

This is a purchase of future receivables, not a conventional business loan — there's no interest rate in the traditional sense, and approval leans on deposit consistency rather than a credit-first review. For the pricing details specifically, see what is a factor rate.

Who Actually Qualifies

Providers typically want 3-6 months in business, consistent monthly deposits (whether from cards, invoices, or a mix), and clean recent bank statements. There's no universal minimum credit score, though it affects your factor rate and offer size. Full checklist: merchant cash advance requirements. If your business is brand new with limited deposit history, see merchant cash advance for small business for what's realistic. The Federal Reserve's Small Business Credit Survey tracks how small businesses across industries actually experience alternative financing like this.

Choosing Between Providers

Providers offering a business cash advance vary on factor rate, how they structure the daily or weekly pull, and how transparent they are about total payback before you sign. See business cash advance lenders for the specific criteria to compare, and questions worth asking before you commit to any offer.

When a Business Cash Advance Isn't the Right Tool

If your business needs recurring, flexible access to capital rather than a lump sum against future sales, a business cash advance is the wrong shape entirely — a line of credit or term loan solves a different problem at a different cost. The full side-by-side, including when each makes sense, is covered in merchant cash advance vs loan. The Federal Trade Commission recommends comparing total repayment cost across financing types before committing to any one product.

Related Uses

For businesses specifically without heavy card-swipe volume that still want to compare this against other uses of the same product, see business merchant loans. For businesses without strong credit, see merchant cash advance bad credit.

See Real Offers

A short application matches you to providers based on your actual deposit history, not assumptions about your business type: see your funding options.

This guide is for general information only and is not financial advice. Terms, structures, and factor rates vary by provider and change over time. Confirm current terms directly with any provider before signing.