Merchant cash advance requirements: what you actually need

The four requirements that decide most files

Every funder writes its own box, but the boxes look alike. Four things decide whether a file is worth sending anywhere. This is the box we work to.

• 6+ months in business. Between six and twelve months still works, with smaller, shorter offers.
• $10K+ monthly revenue, deposited into a business bank account in the company's name.
• FICO from 450. The score is self-reported.
• A US business with an open checking account the funder can debit on business days.

Deposits are the real requirement

The revenue minimum is a floor, not the test. Underwriters read four months of statements and ask one question: do deposits show up on a schedule? Steady card batches and ACH payments read better than a few large wires. Transfers between your own accounts get backed out of the count.

Deposits also set the size of the offer. Advances typically run between 0.5x and 1.4x of average monthly deposits. A hypothetical shop depositing $40,000 a month might see offers from $20,000 to about $56,000, depending on how clean the statements read. Our How much can I get calculator runs this for your own numbers.

The documents to have ready

A complete file can move the same day. A file missing one statement waits. Have these ready before you apply.

• The last four months of business bank statements, downloaded as PDFs from your bank portal. Screenshots and scans slow everything down.
• The current month to date. Many funders ask for it.
• A photo of your driver's license or other government ID.
• A voided business check or a bank letter, so the funder can set up the debit.
• Larger requests sometimes need more, such as a recent tax return or a profit and loss statement. We tell you up front if yours does.

What actually gets a file declined

Credit scores decline fewer files than the patterns below. Some of them improve in a month, because the newest statement carries the most weight. Falling deposits and too many advances take longer. Our guide to what funders look for in bank statements lists the moves that help most.

• A run of negative days, especially in the most recent month. One is a conversation. A pattern is a decline.
• Recent bounced payments. An NSF last week hurts more than three from four months ago.
• Deposits falling month over month with no seasonal reason.
• Too many existing advances. Each one is a daily debit against the same deposits.
• Deposits that are mostly transfers from your own other accounts.
• An application that does not match the statements. Guessing at your own revenue kills trust fast.

Six months in business, or less

Six months is where most funders start. Between six and twelve months you could still qualify, but expect smaller amounts and shorter terms, because the funder has less history to read.

Under six months, most advance funders will not look at the file, and we would rather tell you that than waste your time. The options that tend to work are equipment financing against what you are buying, a microloan from a community lender, or two or three more months of clean statements. Call us anyway and we will tell you what fits.

Common questions