Financing program
Merchant Cash Advance
A merchant cash advance purchases a portion of future card receivables. Repayment scales with sales, which suits businesses with heavy seasonal swings, and it costs more than term debt.
What is merchant cash advance for a food business?
A merchant cash advance purchases a portion of future card sales, and repayment is a percentage of daily or weekly card volume rather than a fixed payment. It funds fast and costs more than term debt, so compare the total dollars repaid, not the factor rate.
Estimates, not offers: Amounts, terms, and funding times are estimates based on programs commonly available in food service. Actual terms vary by program, lender underwriting, time in business, revenue, and credit profile. Nothing here is an offer of credit or a guarantee of approval. See source and method.
| Detail | |
|---|---|
| Typical amount | 5,000 to 250,000 |
| Term | Repaid as card volume arrives |
| Time to funding | 1 to 3 business days |
| Documents | Application, bank and processing statements |
| Cost structure | Factor rate, highest total cost |
Estimates, not offers: Amounts, terms, and funding times are estimates based on programs commonly available in food service. Actual terms vary by program, lender underwriting, time in business, revenue, and credit profile. Nothing here is an offer of credit or a guarantee of approval. See source and method.
Where it fits
- /Fast access
- /Seasonal revenue
- /Credit profiles that do not fit bank criteria
How the program works
- /Remittance is a percentage of daily or weekly card volume.
- /Funding can move quickly because underwriting centers on processing history.
- /Cost is expressed as a factor rate, not an interest rate. Compare total dollars, not percentages.
What it looks like in practice
A beachfront bar funds a summer staffing ramp and repays faster during peak weeks.
A food truck covers an emergency engine rebuild during festival season.
Merchant Cash Advance questions
How does repayment work?
A fixed percentage of daily or weekly card sales is remitted automatically until the purchased amount is delivered. Slow weeks remit less, busy weeks remit more.
What is a factor rate?
A factor rate is a multiplier on the advance amount. A 30,000 advance at 1.30 means 39,000 total repaid. Compare total dollars against other options, not the rate itself.
How fast can it fund?
Usually 1 to 3 business days, which is why it is common for emergency repairs and equipment failures.
Who should consider an advance?
Operators with strong card volume, heavy seasonality, or a credit profile that does not fit bank criteria, and who understand the higher total cost.
Can an advance be refinanced later?
Yes. Operators frequently refinance advances into SBA or term debt once they qualify, which lowers the payment substantially.