What is the lowest credit score for a merchant cash advance?

Merchant Fund Express considers scores from 500. A lower score usually means a smaller amount or a higher factor rate. Deposits, balances, and existing payments carry a lot of weight in the decision.

Will a merchant cash advance help rebuild my credit?

Usually not directly, because most advances are not reported like loans. What helps is using the cash to stabilize the business, paying personal accounts on time, and keeping balances healthy in the business account.

Is an advance with bad credit more expensive?

Generally yes. Lower scores signal more risk, so factor rates tend to be higher and amounts smaller. Ask for the total repayment in dollars and compare it to the net cash you receive.

Can I get approved with a past bankruptcy?

It depends on how recent it is and what your deposits look like now. A discharged bankruptcy is not an automatic decline at many funders, but expect closer review and possibly a smaller first advance.

Merchant Cash Advance With Bad Credit: How It Works

The short answer

A merchant cash advance can work with bad credit because the review focuses mainly on card sales and bank deposits rather than your score alone. Merchant Fund Express considers scores from 500, and its guidelines commonly look for about $7,500 a month in revenue and 3+ months in business. Expect higher costs than with good credit, and compare total repayment carefully.

Why credit matters less here

An advance is the purchase of a share of future sales. Repayment comes from those sales, so the reviewer cares most about whether they keep arriving.

Credit still gets looked at. A low score tells the reviewer to price for more risk, and it can shrink the amount. But a 540 score with consistent deposits often gets further than a 700 score with a nearly empty account.

The MFE bad-credit merchant cash advance page lays out the funding side of this review.

Who it fits, and who it does not

Fits: a business with steady card or bank deposits, at least a few months of history, and a score damaged by past personal debt, medical bills, or a rough year.
Fits: a short-term need that pays itself back, such as stocking up before a busy month.
Does not fit: a business whose deposits are falling month after month. An advance makes a shrinking business shrink faster.
Does not fit: covering ongoing losses. If the business loses money every month, a payment on top of that makes the hole deeper.

Check what your business qualifies for

Merchant Fund Express reviews merchant cash advance with bad credit requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.

Check funding options with Merchant Fund Express

How the review and repayment work

The reviewer reads your recent statements for average monthly deposits, average daily balance, negative days, and other payments already coming out.

If approved, you receive a lump sum. In return you repay a fixed total, set by a factor rate, through a holdback on card sales or a fixed daily or weekly debit from your bank account.

With a percentage holdback, slower days mean smaller payments. With a fixed debit, the payment stays the same no matter how the day went, which is why the payment needs to fit your slowest weeks.

Illustrative example: a salon with a 540 score

The figures below are illustrations built on stated assumptions, not offers or quotes. Real pricing depends on the full file.

Assumptions: about $50,000 a month in total revenue, of which $45,000 is card sales. Advance of $35,000 (0.7x revenue), factor 1.42, 3% fee, 12% holdback on card sales.

Item	Amount
Advance amount	$35,000
Fee (3%)	$1,050
Net cash received	$33,950
Total repayment ($35,000 x 1.42)	$49,700
Monthly holdback (12% of $45,000)	$5,400
Approximate payoff time ($49,700 / $5,400)	About 9.2 months

The cost here is $15,750 over the net cash received. With a stronger score, the same file might get a lower factor, so the score is worth working on even after you fund.

Funding brings customers. Is your website ready for them?

When an advance costs more because of a low score, every dollar of it has to bring in sales, and a weak website wastes the customers your restock or promotion attracts. Cheap Cheap Websites builds professional sites from $399, with Website Care at $30/month to keep prices, services, and booking links current while you pay the advance down.

See website plans See example websites

Websites from$399one-time, plus Website Care $30/month. Built for you, words included, se habla español.

What to prepare

3 to 4 months of business bank statements, plus card processing statements if you take cards.
Photo ID for each owner and a voided check for the deposit account.
A list of any current advances or loans with their payment amounts. Hiding them causes declines later in the file.
A short explanation for any big dip or unusual deposit, written in two or three lines.

Better options to check first

If your deposits are strong but your score sits just under 600, ask whether a small working capital loan is possible after a few months of on-time payments elsewhere.

If your customers are businesses that pay on invoice, factoring may cost less and rely on their credit, not yours.

If you already have an advance, a refinance may make more sense than a second position. And if the need is not urgent, waiting a month or two of clean statements can improve the offer.

Related funding guides

Business funding with bad credit Merchant cash advance Revenue-based financing with bad credit "No credit check" business funding: what it really means Merchant cash advance with bad credit at Merchant Fund Express

Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 15, 2026.

A merchant cash advance with bad credit leans on your deposits