A business cash advance — also known as a revenue advance or merchant cash advance — is a way to borrow a lump sum based on your future sales or revenue. Requirements are generally more lenient than other types of business financing, and funding is typically fast, making it an option for newer businesses or those with less-than-perfect credit. But this type of funding can be expensive so it’s important to compare multiple lenders to find the best deal.
Consider our top picks for business cash advances, including a wide range of advance amounts, loan terms and rates.
9.5 Excellent
Lendzi can help businesses access quick funding through its cash advance options, offering merchant cash advance loan amounts from $5,000 to $500,000 or more. As a loan marketplace with an extensive network of lenders, Lendzi connects business owners with financing solutions tailored to their needs. By completing a simple online application, you can compare potential offers and find the right fit for your cash flow.
While eligibility varies by lender, you're more likely to qualify if you have a credit score above 580, at least two years in business, and an annual cash flow of around $180,000. Lendzi works with borrowers across different credit backgrounds and has received strong ratings on platforms like Trustpilot and the BBB. Just keep in mind that working with multiple lenders may lead to follow-up marketing calls and emails, even after securing funding.
| Loan amount | $5,000 to $500,000 |
|---|---|
| Starting Factor Rate | 1.1 |
| Min. Credit Score | 580 |
| Loan amount | $5,000 to $500,000 |
|---|---|
| Starting Factor Rate | 1.1 |
| Min. Credit Score | 580 |
8.8 Great
Fora Financial offers revenue advances up to $1,500,000, and you only need to be in business for six months to qualify. Unlike many cash advance lenders, Fora offers prepayment discounts and the opportunity to increase the amount you borrow after paying off at least 60% of the original advance. But you'll need at least $25,000 in monthly revenue to qualify, it doesn't build business credit and rates can reach as high as 40%.
| Loan amount | $5,000 – $1,500,000 |
|---|---|
| APR | Factor rates from 1.1 to 1.5 |
| Min. Credit Score | 570 |
| Loan amount | $5,000 – $1,500,000 |
|---|---|
| APR | Factor rates from 1.1 to 1.5 |
| Min. Credit Score | 570 |
7.6 Great
While business cash advances tend to be an expensive form of financing, Credibly's factor rate, starting at 1.11, is on the lower end of average, making it more affordable than some of the competition. It also offers a fast approval process with funding possible as soon as the same day you apply. But you may be required to make daily repayments, and you'll need at least $15,000 in monthly revenue to qualify.
| Loan amount | $5,000 to $600,000 |
|---|---|
| Starting Factor Rate | 1.11 |
| Min. Credit Score | 500 |
| Loan amount | $5,000 to $600,000 |
|---|---|
| Starting Factor Rate | 1.11 |
| Min. Credit Score | 500 |
If your business generates at least $150,000 in monthly revenue, you might be eligible for a business cash advance of up to $5,000,000 from Libertas. It offers funding in as little as 24 hours and has renewal options available. But you'll need a personal credit score of at least 630, it doesn't disclose its rates on its website and minimum revenue requirements are high compared to other lenders.
| Loan amount | up to $5 million |
|---|---|
| Min. Credit Score | 630 |
| Loan amount | up to $5 million |
|---|---|
| Min. Credit Score | 630 |
It can be difficult to qualify for financing when you're self-employed. But Giggle Finance is answering that need by providing funding for 1099 workers, independent contractors, app-based freelancers and other self-employed individuals. And it's fast — by filling out a quick application and linking your business bank account, you can access capital in minutes. However, advance amounts are limited to $10,000, and it doesn't disclose its rates and fees on its site.
| Loan amount | Up to $10,000 |
|---|
| Loan amount | Up to $10,000 |
|---|
Finder’s business loan experts analyzed dozens of lenders offering business cash advances. We ultimately chose lenders with competitive rates, fast funding, and flexible repayment terms.
Some of the criteria we used to evaluate lenders include:
It’s a good idea to compare multiple lenders that offer business cash advances and consider the following factors before deciding.
A business cash advance — sometimes referred to as a merchant cash advance or revenue advance — is an advance based on future sales or revenue. The advance comes as a lump sum payment, and you agree to pay it back through a percentage of your incoming sales.
Most commonly, repayments are deducted automatically from your account weekly or daily, although some agreements may allow for bi-weekly or monthly repayments. Terms are generally short for business cash advances — usually three to 12 months — but some lenders may offer longer terms.
For the most part, revenue advances are not renewable — like business lines of credit — but some lenders advance additional funds after paying off a percentage of your original loan. And, while there isn’t usually an incentive to repay business cash advances early, there are a few lenders, like Fora Financial, for example, that give discounts for early repayment.
Consider the advantages and disadvantages of business cash advances.
A business cash advance is an expensive form of funding. You may want to consider these other types of loans for small businesses.
| Type | Typical loan amounts | Typical term lengths | Best for |
|---|---|---|---|
$13,000 to $5 million | Up to 25 years | Established businesses with decent credit that don’t qualify for other types of funding | |
Up to 100% of the cost of the equipment | 3 to 10 years | Businesses that need heavy equipment or other expensive machinery | |
Up to $2 million | 1 to 10 years | Businesses with good credit looking for large loan amounts and predictable monthly payments | |
$2,000 to $250,000 | 6 months to 5 years | Businesses looking for immediate short-term funding or want a renewable lending source | |
Microloans | $500 to $50,000 | Up to 6 years | Startup businesses or women- or minority-owned firms |
70% to 90% of unpaid invoices | 1 to 3 months | B2B companies with a lot of outstanding invoices | |
70% to 80% of unpaid invoices | 1 to 3 months | B2B companies with a lot of outstanding invoices |
We currently don't have that product, but here are others to consider:
How we picked theseThe Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
The exact requirements to qualify can vary significantly by lender, but you’ll typically need to meet the following minimum criteria:
Some lenders may also check your credit, although it may only be a soft pull. But in general, your credit score isn’t as heavily weighted for business cash advances as it is with other types of business financing.
In general, the application process for a business cash advance goes as follows:
Some lenders may require an extra step where you talk to a lending specialist prior to funding, but that’s not always the case.
Because business cash advances are generally one of the more expensive forms of business financing, you may want to consider a few other options.
Business cash advances are generally quite expensive, but they may be an option if you can’t qualify for other types of business funding. However, the repayment plans can be rigorous, so be sure the payments fit your budget.
If the lender requires a hard credit pull as part of the application process, your score might drop a few points. However, lenders that offer revenue advances generally don’t report to the credit bureaus, so even if you can’t make your payments, there shouldn’t be any impact on your credit score.
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