Need fast funding for your small business? This quick guide previews CNBC Select’s 2026 picks so you can shop smart. You’ll see Credibly (best for flexible funding), Libertas Funding (best for established firms needing larger sums), Lendio (best for comparing options), and Fora Financial (best for bad credit).
What is a merchant cash advance? It is usually a purchase of a slice of your future card sales, not a traditional loan. That makes paperwork and terms look different than a business loan.
In this buyer’s guide, you’ll learn how an advance works, what it costs, how to compare offers, and which questions to ask before you sign. We focus on speed to funds, factor rate and total payback, repayment method, eligibility, and needed documents.
Who this is for: you run a small business with steady card transactions and need short-term support without long underwriting. By the end, you’ll match your situation to a provider type and weigh these offers against lines of credit and other financing options.
How merchant cash advances work for small businesses
Here’s a simple breakdown of how these short-term funding products move money from your future sales into your hands today.
What you’re actually selling: you get a lump sum now and the provider buys a percentage of future receivables at a discount. Approval often hinges on steady revenue, so your daily card sales matter more than a perfect credit score.
Common repayment methods
Card-sales holdback: the provider takes an automatic slice of each debit or credit card sale. Payments shrink on slow days and rise on busy days because deductions track volume.
Fixed bank withdrawals: the provider pulls a set daily or weekly amount from your business bank account. That feels more like a regular loan payment even though the product is structured differently.
Terms and naming
Some sites call the product a business cash advance when they mean fixed remittance. Others use merchant cash advance to describe a card-sales holdback. Read contracts to spot which method affects your cash flow.
“Know whether payments flex with sales or stay fixed — that choice can make or break daily operations.”
| Repayment Type | How it works | Cash flow effect |
|---|---|---|
| Card-sales holdback | Automatic percentage of each card sale | Variable: lower on slow days, higher on busy days |
| Fixed bank withdrawals | Set daily/weekly pulls from your bank account | Predictable but can strain low-revenue periods |
| What to compare next | Repayment method, total payback, contract clauses | Impacts cash flow, operations, and true cost |
When a merchant cash advance makes sense for your cash flow
Fast access to working capital can keep seasonal demand or time-sensitive buys from slipping away.
Short-term working capital needs tied to daily card sales
If most of your revenue comes from card sales, a structure that flexes with volume can ease pressure on slow days.
Use this option for clear, short-term needs: inventory buys, emergency repairs, payroll gaps, or a time-sensitive purchase.
- Matches repayments to sales so remittance changes with daily volume.
- Best when you can forecast sales and handle frequent deductions.
- Map the funding amount to a specific spend and repayment plan.
Fast funding timelines and why speed can matter
Some providers can approve and you can receive funds in as little as 24–48 hours. That speed helps you lock vendor discounts or meet peak demand.
Think of this as short-term financing, not long-term capital for growth. The terms and amount should target a gap you plan to close quickly.
| Good-fit use | Why it fits | Timing |
|---|---|---|
| Inventory for seasonal peak | Quick funds, repayments flex with sales | 24–48 hours typical |
| Emergency repairs | Fast approval reduces downtime | Same-week funding often possible |
| Payroll gap | Short-term cover without long underwrite | Funds within days |
Pros and cons you should weigh before you apply
Weigh the upside and the trade-offs so you can tell when quick funding truly helps your business.
Benefits at a glance:
- Funds can arrive in as little as 24 hours, which helps with urgent inventory or payroll needs.
- Flexible remittance ties payments to daily sales, so deductions fall when revenue slows.
- Qualification is often looser than for a traditional loans product, which can help if you have a low credit score.
Key drawbacks to watch:
- Terms are usually short (3–15 months), so total payback can be high even if individual payments vary.
- Providers use factor rates rather than a simple interest rate, which can raise the effective cost and add fees.
- Frequent withdrawals can strain your cash flow and squeeze margins during slow periods.
Regulatory reality
These arrangements are often structured as purchases of future receivables, not a business loan. That means they may not carry the same consumer protections or disclosure rules as traditional loans.
“If speed fixes a real gap and you can absorb the total payback, the option may fit. If not, compare alternatives first.”
| Consideration | What to expect | How it affects your business |
| Speed | Funds in 24–48 hours possible | Good for urgent buys; less time to shop rates |
| Repayment method | Daily holdback or fixed withdrawals | Variable payments ease slow days; fixed pulls can strain bank balance |
| Total cost | Factor rates and fees vs APR | Often more expensive than a small business loan over time |
| Requirements | Revenue or deposit minimums; lenient credit checks | You may get approved with bad credit but still need steady deposits |
Understanding factor rates, fees, and the real cost of capital
Break down factor rates and fees now so you can spot the real cost behind headline offers.
Factor-rate basics and typical ranges
Providers often quote factor rates between 1.1 and 1.5. That number multiplies the amount you receive to show total payback.
How to calculate total payback
Use this simple formula: Total payback = advance amount × factor rate.
Example: $30,000 × 1.5 = $45,000. That is the cash you repay, before considering fees or timing.
APR comparisons and timing
Translating to an APR can make short-term products look extreme. Still, APR helps compare these options to a line of credit or term loan.
Remember: faster repayment often raises the effective interest you pay over a short period.
Fees and early-pay rules
Watch origination, underwriting, and admin fees — they reduce your net funded amount.
Some providers offer true early-pay discounts (Libertas advertises 10%–25%), while others use prepayment penalties. Read terms closely.
| Item | What to check | Why it matters |
|---|---|---|
| Factor rate | Range (1.1–1.5) | Determines total payback |
| Fees | Origination, admin, underwriting | Reduces net funds and raises cost |
| Early payoff | Discount vs penalty | Affects final cost if you repay early |
| Repayment speed | Days to months | Faster payoff can increase effective rate |
What merchant cash advance companies look for in your application
Lenders focus on a few concrete signals to decide if your business can handle short-term funding. They want to see steady deposits, enough time in business, and clear ID for owners.
Revenue, time in business, and deposits
Monthly revenue and average bank deposits matter most. Providers expect consistent cash flow so remittances won’t cripple operations.
Examples: Credibly often asks for 6+ months and about $15,000 monthly revenue. Lendio can work with three months and $10,000 monthly revenue. Libertas has stricter revenue thresholds.
Credit expectations and bad credit scenarios
Some lenders accept lower credit scores but will price risk higher. Lendio may accept a 500 score; Libertas typically wants ~630+ FICO.
Fora Financial considers overall business health and may delay a hard pull until funding.
Documents and how checks work
Prepare recent business bank statements (last 3 months), a lease or mortgage statement, and government IDs for all owners. Confirm your business bank account details to avoid delays.
| Underwriting item | Why it matters | Typical ask |
|---|---|---|
| Monthly revenue | Shows ability to repay | $10k–$150k+ depending on provider |
| Time in business | Signals stability | 3 months to 2 years |
| Bank statements & ID | Verify deposits and ownership | Last 3 months; photo ID for owners |
“Gathering three months of statements and confirming your bank account speeds the application to funding.”
Best merchant cash advance companies to consider in 2026
This shortlist highlights providers that suit different revenue patterns, funding sizes, and approval needs.
How to pick: the “best” provider depends on your monthly sales, how fast you need funds, and whether you want to compare multiple offers before signing.
How these picks map to common small business situations
Credibly fits businesses with fluctuating daily sales that need flexible remittance and fast deposits.
Libertas Funding is aimed at established firms that need larger funding and can meet higher revenue and score requirements.
Lendio works when you want to shop multiple financing options at once — one application opens many doors.
Fora Financial is a solid choice if your credit is weak but your operations and deposits look healthy.
- What we’ll compare: funding range, speed to funds, term length, eligibility requirements, required documents, repayment flexibility, and early-pay terms.
- Terms vary: treat advertised ranges as starting points and confirm factor rates and total payback before you sign.
- Cash flow first: frequent remittances can work in busy seasons and strain you during slow months — model worst-case months before borrowing.
“Confirm the total payback and how repayments track your sales before you accept any offer.”
Credibly review: best for flexible funding and fast deposits
Credibly targets small businesses that need quick working capital and a repayment plan that flexes with sales. If your card sales jump and drop, this option aims to ease pressure on slow days while letting you cover urgent needs.
Funding amounts, term length, and speed to receive funds
What you can expect: funding ranges from $5,000 to $400,000, with terms roughly 3–15 months. Applications are reviewed within one business day, and you may receive funds in as little as 24 hours after approval.
Eligibility and documentation you should plan to provide
Baseline requirements include 6+ months in business and about $15,000 in average monthly revenue. Ask to confirm any score expectations before applying.
Prepare these documents to avoid delays:
- Signed receivables purchase agreement
- Business mortgage statement or lease
- Government photo ID for all owners
- Last three months of business bank statements
Why flexibility matters if your sales volume swings
Flexible remittance links payments to real revenue so deductions fall when you have quieter days. That helps protect your day-to-day cash flow compared with fixed pulls from your bank account.
Tip: ask how the early repayment discount works and whether it reduces the total payback or only cuts fees.
| Item | Detail | Why it matters |
|---|---|---|
| Amount | $5,000–$400,000 | Matches small needs to larger inventory buys |
| Terms | 3–15 months | Short horizon; model total payback |
| Speed | Review in 1 day; funds in 24 hours | Good for urgent timing |
Libertas Funding review: best for established businesses needing large amounts
When your business needs a large infusion fast, Libertas positions itself for big, revenue-driven financing.
Big-picture fit: Libertas works as a “big swing” option when you already generate strong deposits and want one large sum to fund inventory, expansion, or a major project.
High maximum funding and same-day financing potential
Libertas offers up to $5 million via revenue-based funding and can sometimes deliver same-day funds. Terms range from 3 to 24 months, so the amount and timing suit larger, time-sensitive buys.
Revenue and credit score requirements you’ll need to meet
Expect stricter requirements: roughly $150,000 in monthly revenue and about a 630+ FICO score. These thresholds keep approvals focused on established operations that can handle higher payments.
Remittance frequency options and early repayment discounts
You can choose remittance schedules (daily, weekly, or other options) to ease bank strain during slow spells. There are no prepayment penalties and you may get a 10%–25% early-pay discount — confirm the exact discount in writing.
“If you need a large amount and meet the revenue and score thresholds, compare the total payback and term length to term loans before you commit.”
Lendio review: best for comparing financing options across a lender network
If you want to shop many lenders at once without filling out multiple forms, Lendio uses one online application to match you with offers from 75+ lenders.
How it works: you submit a single profile and the platform returns competing proposals so you can compare funding speed, total payback, and repayment method.
What the matching process asks for
The application asks for business basics: months in business, average monthly revenue, and ID. That keeps offers comparable and speeds approvals.
Baseline eligibility to expect
For a business cash advance, Lendio commonly lists a 500 credit score minimum, about $10,000 monthly revenue, and 3 months in business. Use this as a practical starting gate.
Questions to ask a funding manager
- What is the total payback and the effective fees?
- Is repayment a percentage holdback or fixed bank withdrawals?
- What’s the term length and expected funding speed to get funds?
- Are any fees taken from the funded amount upfront?
“Request at least two offers and compare how each one affects weekly cash flow, not just the headline amount.”
Fora Financial review: best for bad credit and overall business health underwriting
If your personal credit has rough spots but your business deposits are steady, Fora Financial is worth a close look.
Why it fits: Fora leans on business strength more than a pristine score. You can qualify with a 500 credit score if other requirements line up.
Minimum score and revenue requirements
Key minimums: at least a 500 credit score, 6+ months in business, roughly $15,000 per month in revenue, and no open bankruptcies.
Funding amounts, timing, and credit checks
You can request amounts up to $1.5 million. Approval and funding often occur in 24–48 hours depending on your file.
The company typically avoids a hard pull during the application. Expect a hard inquiry when documents are verified at funding.
Increasing your advance and prepay discounts
After you repay about 60% of the original amount, you may be eligible to increase your next advance. That helps with repeat funding needs.
Fora offers a prepayment discount. Ask whether the discount reduces the total payback or only certain fees before you sign.
| Item | What to expect | Why it matters |
|---|---|---|
| Minimum credit score | ≈500 | Accessible if your score is low but revenue is steady |
| Revenue & time | 6+ months; ~$15,000/month | Shows consistent deposits for remittance |
| Funding amount | Up to $1.5M | Works for larger inventory or short-term projects |
| Timing & credit check | 24–48 hours; soft pull at app, hard pull at funding | Plan around the hard inquiry and timing |
| Step-up & prepay | Increase after 60% repaid; prepay discount available | Rewards repayment and supports repeat use |
Alternatives to merchant cash advances you should compare first
Before you accept a speedy funding offer, weigh common alternatives that may cost less over time. Fast access can solve a gap, but total cost and payment cadence matter more for long-term health.
Business line of credit vs a term loan (OnDeck example)
Lines of credit give revolving access for ongoing needs; you draw, repay, and draw again. That helps if you need flexible working capital and prefer monthly interest-only charges.
A term loan gives a lump sum for a defined project and fixed payments over a set term. OnDeck offers both, so use it as a benchmark for rates and terms when you compare offers.
SBA loans, invoice factoring, equipment financing, and credit cards
SBA loans and traditional loans usually offer lower interest and longer terms, but take longer to fund. Invoice factoring converts receivables to quick funds at a fee. Equipment financing attaches the rate to the asset you buy. A business credit card works for short, small purchases and rewards, but watch high interest.
How to choose: repayment terms, rates, and cash flow impact
Compare net funds received after fees, payment cadence (daily/weekly/monthly), and total cost. Model worst-case months so payments don’t drain your bank account.
“Speed helps, but compare total payback, payment timing, and how each option affects daily cash flow.”
| Option | Best for | Typical cadence |
|---|---|---|
| Line of credit | Ongoing working capital | Monthly |
| Term loan | Lump-sum projects | Monthly |
| Invoice factoring | Fast receivables conversion | Daily/weekly |
Conclusion
strong, keep one clear rule: match the repayment pattern and total payback to your cash flow, not just the speed of funding. A merchant cash advance is a purchase of future receivables, so note whether payments come as a holdback on card sales or as fixed withdrawals.
Factor rates commonly sit between 1.1 and 1.5. Use the simple formula: total payback = advance amount × factor rate. That number tells you the real cost, plus any fees or prepay rules.
Pick Credibly for flexible remittance, Libertas for large funding when you have strong revenue, Lendio to compare offers, and Fora Financial if your credit score is low but deposits are steady. Before you apply, confirm requirements and documents, compute total payback, and stress-test payments against slow months.
Finally, compare at least one offer to a line of credit or term loan so you choose the right balance of speed, cost, and cash flow impact.