# Merchant cash advance cheat sheet: factor rates, holdbacks and sizing

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Updated October 16, 2026. Funding offered by Merchant Fund Express (https://merchantfundexpress.com/merchant-cash-advance/); Cheap Cheap Websites builds websites and does not lend.

## The short answer
A merchant cash advance (MCA) gives a business a lump sum in exchange for a share of future sales. The cost is set by a factor rate, such as 1.30, multiplied by the amount funded, and repayment comes through daily or weekly debits or a holdback on card sales. Many funders size an MCA at roughly 0.5x to 1.5x monthly revenue. It is fast and flexible on credit, but usually costs more than a bank loan.

## At a glance
- Typical amounts: Often 0.5x to 1.5x monthly revenue (illustrative); MFE reviews $5,000 to $5,000,000
- Revenue guideline: Commonly from about $7,500 a month at MFE
- Time in business: Often 3+ months
- Credit: Flexible; scores from 500 considered, stronger credit usually means better offers
- Speed: Same-day decisions common on complete files; funding often the next business day, never promised
- Cost structure: Factor rate x amount funded = total payback
- Repayment: Fixed daily or weekly debit, or a percentage holdback of card sales
- Documents: 3 to 4 months of bank statements, ID, voided check, short application
- Best for: Short-term needs with a clear payback, steady deposits
- Avoid if: You need long-term money or already carry several advances

## Before you apply: checklist
- Know your average monthly deposits for the last 3 to 4 months
- Decide the exact amount you need and what it pays for
- Ask for the factor rate and total payback in writing
- Ask whether payments are daily, weekly or a card holdback
- Check the payment against a slow week, not an average week
- List any advances you already have open
- Ask about early payoff terms
- Have your ID, voided check and statements ready

## How an MCA works
An MCA is a purchase of future receivables, not a traditional loan. You receive a lump sum. The funder collects a fixed total, called the total payback , through one of two methods: Fixed debits. A set amount is pulled from your bank account each business day or each week. Holdback. A percentage of each card sale, such as 10 percent, goes to the funder until the total is paid. The factor rate sets the cost. A $30,000 advance at 1.30 means $39,000 to repay. Unlike interest, the cost is fixed up front, so paying early may not save money unless the contract offers a discount. Read more in our merchant cash advance guide .

## Sizing: how much can you get?
A common planning guideline is 0.5x to 1.5x monthly revenue . A business depositing $40,000 a month might see offers between $20,000 and $60,000. Where you land depends on deposit consistency, NSFs or negative days, existing positions, industry and credit. Asking for the top of the range is not always smart. The bigger the advance, the bigger the payment. Size it to the job you need done. If credit is your worry, see our guide to MCAs with bad credit .

## Illustrative example: one advance, start to finish
Illustrative example Item Amount Monthly revenue $40,000 Guideline range (0.5x to 1.5x) $20,000 to $60,000 Amount funded $30,000 Factor rate 1.30 Total payback ($30,000 x 1.30) $39,000 Cost of funds ($39,000 minus $30,000) $9,000 Weekly payment over 26 weeks ($39,000 / 26) $1,500 Daily payment over 126 business days ($39,000 / 126) $309.52 Assumptions: no fees deducted, no early payoff discount, a six-month term. The weekly payment of $1,500 is about 16 percent of an average week's revenue ($40,000 x 12 / 52 = $9,230.77). These figures are illustrations, not offers. Real pricing and terms depend on your file.

## Same-day MCA and common mistakes
MCAs are popular because they can move fast. Same-day decisions are common when the file is complete, and funding often follows the next business day. It is never promised, and an incomplete file is the most common delay. Common mistakes: Comparing a factor rate to an APR as if they were the same thing. Taking a second advance a few weeks after the first. Ignoring how a daily debit lands in slow weeks. Not asking for total payback in writing. Using short-term money for a long-term project.

## How Merchant Fund Express handles this
Merchant Fund Express reviews MCA requests from $5,000 to $5,000,000. MFE's published guidelines commonly start at about $7,500 a month in revenue and 3+ months in business, with flexible credit. These are guidelines, not approval rules. Read the MFE merchant cash advance page , then apply with Merchant Fund Express with 3 to 4 months of statements. English and Spanish service is available.

## Frequently asked questions
**Is a merchant cash advance a loan?** Generally no. An MCA is structured as a purchase of future receivables. You repay a fixed total through debits or a holdback on sales. State rules on disclosures vary, so read every contract carefully.

**What is a typical factor rate?** It varies by funder, file and term. The factor rate is multiplied by the amount funded to get total payback. A 1.30 factor on $30,000 means $39,000 back. Ask for the factor rate and total payback in writing.

**Daily or weekly payments: which is better?** Weekly payments are easier to plan around for many owners, while daily debits match businesses with steady daily sales. What matters most is whether the payment still fits in your slowest week.

**Can I get an MCA with bad credit?** MCA reviews lean heavily on deposits, so credit is usually flexible. MFE considers scores from 500. Stronger credit usually means better offers, and steady deposits with few negative days help most.

**Does paying an MCA off early save money?** Only if the contract includes an early payoff discount. Because the cost is a fixed factor rate, the total payback often stays the same no matter how fast you pay. Ask before you sign.

Apply with Merchant Fund Express: https://merchantfundexpress.com/current-application.html?utm_source=cheat-sheet&utm_campaign=merchant-cash-advance