Question 1

What is a merchant cash advance?

Accepted Answer

A merchant cash advance (MCA) is a purchase of your business's future receivables — not a traditional loan. A funder provides an upfront lump sum of capital, and you repay it by remitting a fixed percentage of your daily or weekly sales until the agreed total payback amount is reached. Because repayments flex with your revenue, there are no fixed monthly payments. MCAs are one of the fastest and most accessible forms of small business capital in the US.

Question 2

How is an MCA different from a traditional bank loan?

Accepted Answer

A bank loan involves borrowing money at a fixed interest rate with fixed monthly payments, strict credit requirements, and often requires collateral. A merchant cash advance is a purchase of future revenue, repaid as a percentage of sales — not a loan. MCAs have no fixed payment schedule, typically require no hard collateral, and are available to business owners with lower credit scores who may not qualify for bank financing.

Question 3

What is a factor rate in a merchant cash advance?

Accepted Answer

A factor rate is the flat cost multiplier applied to your advance amount to determine your total payback. If you receive a $50,000 advance at a 1.35 factor rate, your total repayment is $67,500 ($50,000 × 1.35). Factor rates typically range from 1.10 to 1.50 depending on your credit profile, revenue, and time in business. A factor rate is not an APR — it is a one-time, flat cost applied to the advance.

Question 4

What is a holdback or retrieval rate?

Accepted Answer

The holdback (also called the retrieval rate) is the fixed percentage of your gross daily or weekly sales that is automatically remitted to the funder each business day or week. Common holdbacks range from 8% to 18%. If your holdback is 10% and you deposit $5,000 on a given day, $500 is collected. If sales drop to $1,000, only $100 is collected. This automatic flex is one of the key structural advantages of an MCA over a fixed loan.

Question 5

What credit score do I need to qualify?

Accepted Answer

There is no hard minimum credit score for most of the funding products MyCommercialFunding brokers. Many of our funding partners work with personal credit scores as low as 500. Credit score is reviewed, but it is not the primary qualifying factor. Monthly revenue, bank deposit consistency, and time in business carry far more weight in alternative funding underwriting than a single FICO number.

Question 6

Can I get funding with bad credit or after a bank denial?

Accepted Answer

Yes. Bad credit and bank denials are among the most common starting points for business owners who come to MyCommercialFunding. Our funding partners use revenue-first underwriting that evaluates your monthly gross deposits, cash flow patterns, and business health — not just your credit history. If your business is generating real, consistent revenue, you very likely have options regardless of your personal FICO score.

Question 7

Does applying for funding hurt my credit score?

Accepted Answer

MyCommercialFunding's initial pre-qualification process does not involve a hard credit pull. When funders advance to a full review of your file, some may perform a soft or hard inquiry depending on the product, and we communicate that clearly before it happens. By working with a broker like MyCommercialFunding rather than applying to multiple lenders individually, you significantly reduce the risk of multiple hard pulls damaging your score.

Question 8

Can I get funded if my business is new?

Accepted Answer

Businesses with at least 4–6 months of operating history are considered for most MCA programs, particularly if monthly gross revenue is above $15,000. Businesses under six months old face a more limited pool of options. For startup businesses with little history, we will give you an honest read on your current eligibility and a clear roadmap for when and how you're likely to qualify as you build revenue history.

Question 9

How fast can I get a merchant cash advance?

Accepted Answer

MyCommercialFunding routinely delivers same-day approvals for qualified applicants who submit complete documentation, with funding deposited into your business bank account within 24 to 48 hours of approval. In practice, many business owners go from starting an application to having funds in their account in under two business days — far faster than any traditional bank loan or SBA product.

Question 10

How much funding can my business qualify for?

Accepted Answer

MCA amounts are primarily sized based on your average monthly revenue — most programs advance 75% to 150% of your monthly gross deposits. A business depositing $80,000 per month might qualify for $60,000 to $120,000. Larger amounts are available for businesses with higher revenue and stronger underwriting profiles. MyCommercialFunding will present you with the real offers available based on your specific file.

Question 11

Is this available in my state?

Accepted Answer

Yes. MyCommercialFunding serves business owners across all 50 US states. Our funding partner network includes national and regional funders with broad geographic coverage. Whether your business is based in New York, California, Texas, Florida, or anywhere in between, we can evaluate your eligibility and connect you with the right funding partners. We are headquartered in New Jersey but serve businesses nationwide.

Question 12

Is collateral required for a merchant cash advance?

Accepted Answer

No hard collateral is required for a merchant cash advance or most of the revenue-based working capital products MyCommercialFunding brokers. You do not need to pledge real estate, equipment, vehicles, or inventory. Most MCA agreements include a standard personal guarantee, which is a common industry practice, but you are not putting a specific named asset at risk the way you would with a secured bank loan.

Question 13

What documents do I need to apply?

Accepted Answer

Most applications require three to six months of business bank statements, a completed one-page application, a government-issued photo ID (driver's license or passport), and a voided business check. Depending on the product and advance amount, some funders may also request a recent business tax return or a copy of your commercial lease. MyCommercialFunding's team will tell you exactly what your specific deal requires upfront.

Question 14

How does the repayment process work?

Accepted Answer

Repayment is automated — a fixed percentage of your gross daily or weekly deposits is remitted directly to the funder via ACH from your business bank account. You do not need to manage manual payments or remember due dates. The advance is considered complete when the total payback amount has been fully collected, which can happen faster than expected during high-revenue periods.

Question 15

Can I pay off a merchant cash advance early?

Accepted Answer

Yes, but it's important to clarify: because MCAs are purchases of future revenue rather than interest-bearing loans, the total payback amount is fixed at signing. Paying faster — by having higher-than-average sales — reduces the total duration of the advance but you still repay the originally agreed total amount. Some funders do offer early payoff discounts; our team will identify those opportunities for you when reviewing specific offers.

Question 16

What can I use MCA funds for?

Accepted Answer

MCA and working capital funds are unrestricted. Business owners commonly use them for inventory purchases and restocks, payroll and staffing, rent and overhead, equipment repairs or purchases, marketing and advertising, emergency expenses, tax obligations, hiring new staff, franchisee fees, and general working capital. There are no spending covenants or restrictions — once the capital is in your account, you deploy it wherever your business needs it most.

Question 17

What are the risks of a merchant cash advance?

Accepted Answer

The primary risk of an MCA is its higher cost of capital compared to traditional bank financing. Factor rates translate to effective APRs that can be significant, particularly for shorter-term advances. Additionally, taking on multiple MCAs simultaneously (stacking) can create severe cash flow pressure. MCAs are not ideal for businesses with very thin profit margins or declining revenue. MyCommercialFunding reviews the true cost of any offer with you before you sign.

Question 18

When is an MCA not the right choice?

Accepted Answer

An MCA is likely not the right choice if you qualify for a traditional bank loan or SBA product and can afford the time to wait for it, if your business profit margins are below 10–15% and daily remittances would make operations unsustainable, if your revenue is declining rather than stable or growing, or if you are already managing multiple short-term debt obligations that strain cash flow. We will give you an honest assessment of whether MCA funding makes sense for your specific situation.

Question 19

Is MyCommercialFunding a lender or a broker?

Accepted Answer

MyCommercialFunding is a commercial funding brokerage and advisory firm — not a direct lender. We work on your behalf to submit your application to our network of vetted funding partners, compare real offers, and help you understand and select the best option for your business's needs and goals. Our founder Richard McKellar and the MyCommercialFunding team have been on both sides of the MCA industry, which means we know how to package your deal for maximum approval odds and best terms.

Question 20

Who is Richard McKellar?

Accepted Answer

Richard McKellar is the founder of MyCommercialFunding and a veteran of the merchant cash advance and revenue-based financing industry with decades of experience. He previously served on the executive committee of Everest Business Funding, where he helped shape MCA and revenue-based funding strategies for thousands of small businesses across the United States. He founded MyCommercialFunding to give business owners direct access to the expertise and funding partner network that was previously available only through larger institutions.

Question 21

What makes MyCommercialFunding different from other MCA brokers?

Accepted Answer

MyCommercialFunding's differentiation comes from the depth of experience on the team — not just as brokers who submit deals, but as industry insiders who deeply understand how funders underwrite, what terms are genuinely competitive, and when an offer doesn't serve a client's best interests. We operate transparently, explaining every term to every client, and we would rather lose a deal than put a business owner into a product that's wrong for their situation. The team behind MyCommercialFunding has helped facilitate $500M+ in small business capital.

Everything You Need to Know About Business Funding

Merchant Cash Advances — The Basics

Eligibility & Credit

How Fast & How Much

Collateral, Documents & Process

Use of Funds & Risks

About MyCommercialFunding

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