TurboFunding is a lending broker, not a direct lender. Rates and terms vary based on borrower profile and lender approval. This is not financial advice.
Compare rates, terms, and eligibility across our full suite of financing options.
Revenue-based funding that flexes with your sales
Provide immediate funding in exchange for a percentage of your future receivables. Perfect for businesses with recurring revenue.
Monthly Card Sales
$10,000+ monthly
Time in Business
6+ months
Credit Score
500+
A merchant cash advance (MCA) is not technically a loan — it is a purchase of your future receivables at a discount. A funding provider advances you a lump sum of capital, and in return, you agree to remit a fixed percentage of your daily or weekly sales until the total amount (the advance plus a fee, expressed as a factor rate) is repaid. Because repayment is tied to your actual revenue, payments are higher when sales are strong and lower during slow periods.
MCAs are one of the fastest forms of business funding available, with approvals often happening within hours and funds hitting your account in 24 to 48 hours. They also have the most accessible qualification requirements — credit scores as low as 500, businesses as young as 6 months, and minimal paperwork. The tradeoff is cost: MCAs carry higher effective rates than term loans or SBA loans, so they are best suited for businesses that need speed, have limited credit options, or plan to repay quickly to take advantage of prepayment discounts.
MCA pricing is expressed as a factor rate (e.g., 1.2 to 1.5) rather than an APR. This means for every $1 advanced, you repay $1.20 to $1.50. The factor rate depends on your average monthly revenue, deposit consistency, time in business, industry risk, and credit score. Businesses with higher daily deposits and longer operating history receive lower factor rates. The holdback percentage (the share of daily sales withheld for repayment) is typically 10% to 20%.
A restaurant receives a $50,000 advance with a 1.3 factor rate, meaning the total repayment is $65,000. With a 15% daily holdback and average daily sales of $3,000, the daily remittance is $450. At that pace, the advance is fully repaid in roughly 145 business days (about 7 months). If the restaurant has a strong summer and daily sales increase to $4,000, daily payments rise to $600, and the advance is repaid faster. Many providers also offer prepayment discounts that reduce the total cost if you repay early.
Apply online in minutes — you will need basic business information and your last 3 months of bank statements.
TurboFunding reviews your cash flow and daily deposit patterns to determine your advance amount and factor rate.
Receive offers — often within hours. Your advisor explains the factor rate, holdback percentage, and total repayment amount in plain terms.
Accept and fund — most MCAs deposit funds within 24 to 48 hours of acceptance.
No. Legally, an MCA is a purchase of future receivables, not a loan. This distinction means MCAs are not subject to the same interest rate regulations as loans. However, it also means there is no fixed monthly payment — repayment flexes with your daily sales.
A factor rate is a multiplier applied to your advance amount to determine total repayment. For example, a factor rate of 1.25 on a $40,000 advance means you repay $50,000 total ($40,000 x 1.25). Unlike interest rates, factor rates do not decrease as you repay — the total cost is fixed upfront.
Yes. MCAs have some of the most accessible credit requirements in business funding — many providers approve applicants with credit scores of 500 or even lower. Approval is based primarily on your business revenue and deposit history rather than personal credit.
Our funding experts will match you with the product that fits your unique business needs.
