What is a merchant cash advance (MCA)?

A merchant cash advance is a lump sum of capital your business receives in exchange for a share of future sales. You repay a fixed amount (the lump sum multiplied by a factor rate, typically 1.15 to 1.50) over a set term, usually 3-18 months, through daily or weekly ACH withdrawals from your business bank account.

How long does it take to get funded?

MCA and short-term alternative loans: 24-72 hours. Term loans: 3-10 business days. Equipment financing: 3-7 days. SBA 7(a) loans: 45-120 days. Same-day funding is possible on clean MCA files with bank statements ready.

What documents do I need to apply?

For initial offers: the last 3 months of business bank statements in PDF format. Some lenders may later request tax returns, profit & loss statements, or a voided check. For SBA loans, expect to provide 2-3 years of business tax returns.

What is the minimum revenue to qualify?

Most lenders in our network require at least $10,000 per month in revenue for alternative products. For term loans and SBA, minimums typically start at $25,000-$30,000 per month. Established 5+ year businesses often qualify for larger loan amounts at better rates.

How many lenders will see my application?

Your application is matched to the 10-25 lenders in our 100+ network most likely to fund your specific profile. Most applicants receive 3-8 real offers within 24-48 hours.

Is FynFund free to use?

Yes, completely. FynFund is free for borrowers. We are compensated by our lender partners if and when a loan is successfully originated. There are no application fees, no subscription costs, and no hidden charges.

What credit score do I need for a business loan?

Most alternative funders in our network accept personal FICO scores as low as 500-550. SBA loans typically require 620+. Best-rate term loans require 680+. For MCAs, business revenue and time in business matter more than personal credit.

What is a factor rate?

A factor rate is a multiplier used in merchant cash advances to calculate total repayment. A $50,000 advance at a 1.25 factor rate means you repay $62,500. Factor rates typically range from 1.15 (best) to 1.50 (higher risk). Established businesses get better factor rates.

Does applying hurt my credit?

No. FynFund uses a soft credit pull to match you with lenders. Your personal credit score is not affected. The lender you ultimately choose may do a hard pull at contract stage, but only with your explicit approval.

Can my established business get a lower MCA rate?

Yes. Businesses with 5+ years of operating history and stable revenue consistently receive factor rates 10-20% lower than newer businesses. Lenders price risk, and established operators are materially lower risk.

What is the difference between an MCA and a term loan?

MCA: fastest funding (24-72 hours), highest cost (factor rates 1.15-1.50), flexible daily/weekly repayment, no collateral. Term loan: slower funding (3-10 days), lower cost (APRs 9-18%), fixed monthly payments, may require collateral or personal guarantee.

Do you fund veteran-owned businesses?

Yes. Several lenders in our network offer preferred rates for military veteran-owned businesses. The SBA Veterans Advantage program also waives the upfront guaranty fee on SBA 7(a) loans up to $350,000 for veteran-owned businesses.

Can I get a business loan with bad credit?

Yes. Many alternative lenders in our network specifically underwrite businesses with FICO scores in the 500-600 range based on revenue strength rather than credit history. MCAs and revenue-based financing are typically the most accessible products for lower-credit applicants.

What is SBA 7(a) and should I apply for one?

SBA 7(a) is the most common SBA loan program, with amounts up to $5 million and rates of 8-12% APR. It's the cheapest long-term business financing available. Downside: it takes 45-120 days to close. Best for expansion, equipment, working capital, or partner buyouts where speed isn't critical.

Can I pay off a merchant cash advance early?

Yes. Most MCA funders in our network offer early-payoff discounts. The exact discount varies by funder. We negotiate early-payoff terms upfront if that's important to your cash flow strategy.

Does FynFund work with trucking companies?

Yes. FynFund specializes in trucking business funding — owner-operators, small fleets, and larger trucking companies. We route trucking deals to industry-specialized funders for better rates and faster approvals.

Can I get restaurant financing?

Yes. Restaurants, bars, cafes, food trucks, and catering companies routinely qualify. Established 5+ year restaurants get the best rates. Available products include working capital MCAs, equipment financing for kitchen gear, and SBA 7(a) for expansion.

Do you offer invoice factoring?

Yes. For businesses with B2B invoices (trucking, construction, staffing, manufacturing), invoice factoring converts unpaid invoices to immediate cash at 85-97% advance rates. Funds typically arrive within 24-48 hours of invoice submission.

What if I've already taken an MCA?

Prior MCAs don't disqualify you. Many funders offer reverse consolidation to pay off existing positions at better rates, or second-position advances alongside your current stack. Disclose any open positions upfront so we match you accurately.

How much can my business borrow?

Most established 5+ year businesses qualify for $50,000 to $500,000 on their first product. Businesses with $500K+ monthly revenue can access $1M-$2M in MCAs. SBA 7(a) goes up to $5M. The specific amount depends on revenue, product type, and credit profile.

What's the cheapest business loan for an established business?

SBA 7(a) is almost always the cheapest option — 8-12% APR, up to $5M, 10-25 year terms. The catch is the 45-120 day close timeline and the documentation requirements.

How much can a 5-year-old business borrow?

Depends on revenue and credit. Typical 5+ year businesses qualify for $100K-$500K in MCAs, $250K-$1M in alternative term loans, and up to $5M in SBA 7(a). High-revenue operators ($500K+/month) can access $1M-$2M in MCA.

Will comparing offers hurt my credit?

No, if you use a soft-pull broker like FynFund. We match you to lenders using a soft inquiry that doesn't affect your credit. Hard pulls only happen at the final contract stage with your approval.

What's the fastest business funding option?

Merchant cash advances are the fastest — 24-72 hours for clean files, sometimes same-day. Next fastest: invoice factoring (48 hours) and alternative short-term loans (3-7 days). SBA takes 45-120 days.

Do I need collateral to borrow?

Depends on the product. MCAs and most alternative term loans are unsecured (no collateral). Equipment financing uses the equipment itself. SBA 504 requires real estate. SBA 7(a) may require collateral if you have it. Personal guarantee is standard on nearly all business loans.

Best Business Funding Options for Established Merchants (5+ Years)

If you've been running your business for 5+ years, your funding options are dramatically better than they were when you were 1 or 2 years in. The hard part is that nobody explains which product fits which situation — you get sold whatever the broker on the phone happens to sell.

Here's the real rundown. Seven funding products, what each one costs, when each one wins, and how seasoned operators consistently get better rates than the marketing brochures suggest.

Quick ranking by cost (cheapest to most expensive)

SBA 7(a) loan — 8-12% APR, up to $5M, 45-120 days to close
SBA 504 loan — 6-9% APR for real estate only, 60-120 days
Bank term loan — 9-15% APR if you qualify, 30-60 days
Business line of credit — 8-18% APR on draw, 10-30 days to open
Equipment financing — 7-15% APR, 3-7 days, secured by the equipment
Alternative term loan — 15-30% APR, 3-10 days
Merchant cash advance (MCA) — 30-80%+ effective APR, 24-72 hours
Invoice factoring — effective 20-40% APR, 48 hours to set up

Speed and cost run in opposite directions. The cheapest money takes longest. The fastest money is the priciest. Pick based on what the money is for.

SBA 7(a) — the cheapest money on the market

If you're an established business and you have 90 days, SBA 7(a) is almost always the right answer. Here's why:

Amounts up to $5 million
Rates of 8-12% APR — real APR, not factor rates
Terms of 10-25 years (7-10 for working capital, 25 for real estate)
Government guarantee keeps lender risk low, which keeps rates low
SBA Veterans Advantage waives the upfront guaranty fee on loans up to $350K for veteran-owned businesses

The trade-off is the paperwork and timeline. You'll need 3 years of business tax returns, 3 years of personal tax returns, a business plan or use-of-funds memo, financial projections, and usually a lot of back-and-forth with the lender's underwriter. Expect 45-120 days from application to funds in account.

Best uses: Expansion, acquisitions, real estate purchase, working capital for businesses planning 12+ months ahead, equipment purchases where speed isn't critical, partner buyouts.

Bank term loans (and alternative term loans)

A term loan is a fixed lump sum with fixed monthly payments over a set term. Banks offer term loans to established businesses with strong credit at 9-15% APR. If you qualify, these are the second-cheapest option after SBA.

The reality for 5+ year businesses: banks approve maybe 30-40% of applications. If your bank said no, alternative term loan providers in our network pick up the slack. Expect 15-30% APR, amounts up to $500K-$1M, 1-5 year terms, 3-10 day close.

Best uses: One-time expenses with a predictable return — equipment, renovations, marketing campaigns, inventory buys. You know exactly what you need, you know roughly when you'll pay it back.

Business line of credit

A LOC is a revolving facility. The lender approves you up to a maximum amount (usually $25K-$500K), and you draw on it as needed. You only pay interest on what you've actually drawn, not the full facility.

For established businesses with seasonal cash flow, a LOC is often the single most useful product. You can bridge a slow January at a restaurant, cover a retention hold on a construction pay-app, or front an inventory buy before Q4 — and pay it back as soon as the incoming cash arrives. You stop paying interest immediately when you pay down.

Rates are typically 8-18% APR. Approval typically takes 10-30 days. Once open, draws happen same-day.

Equipment financing

If the money is for a specific piece of equipment — a truck, a walk-in cooler, a CNC machine, a skid steer — equipment financing is almost always the right product. The equipment itself serves as collateral, which keeps rates low.

Typical terms: 7-15% APR, 3-10 year amortization, 85-100% LTV (how much of the invoice is financed vs. how much you put down). For trucking operators, you can finance a tractor at 90-100% of dealer invoice with zero-to-minimal down payment if you have strong credit and 5+ years of MC authority.

Funding typically closes in 3-7 days. Paperwork is straightforward: dealer invoice, specifications, 3 months of bank statements, and credit application.

Merchant cash advance (MCA)

We wrote a full guide to MCAs here, but the short version: MCAs are fast (24-72 hours), expensive (30-80%+ effective APR), and repaid via daily or weekly ACH from your business account.

For established businesses, MCA pricing is dramatically better than for newer businesses. Factor rates of 1.18-1.32 are realistic for 5+ year operators with clean bank statements. Advance amounts of $100K-$500K are routine; businesses with $500K+ monthly revenue can access $1M-$2M.

Best uses: Emergencies (equipment failure, surprise tax bill, unexpected payroll shortfall), time-sensitive opportunities (inventory for a specific event, a PO you need to fund immediately), and bridge capital when slower products are also in motion.

Invoice factoring

If you invoice B2B clients and wait 30-60+ days for payment, factoring can be the most efficient product. The factor pays you 85-97% of the invoice immediately. When your client pays (to the factor, not you), you get the remainder minus the factor's fee.

Effective cost usually runs 1-5% per 30 days — so 12-60% annualized depending on how fast your clients actually pay. For industries where you can't control collection speed (trucking, staffing, construction subcontractors), factoring is often the most sustainable working capital tool.

How seasoned operators unlock better rates

Three concrete things:

Use your history. 5+ years of clean bank statements is the single strongest signal to a funder. Don't just attach the last 3 months — when possible, provide 12 months so they see the full revenue picture.
Get competing offers. The biggest rate reductions we see come from simply putting 3-5 funders in competition. A broker that sends your file to one funder is leaving money on the table. A broker that sends to 20 funders and negotiates is doing the job right.
Choose the right product for the use case. Don't pay MCA rates for a renovation project that has 90 days of lead time. Don't wait 90 days for SBA when you need capital Friday. Matching product to need is the biggest cost decision most business owners make without realizing it.

Your next step

FynFund works with 100+ lenders across every product mentioned here. One application, soft credit pull, real competing offers within 24-72 hours, and we never push a product that isn't the right fit.

Get pre-qualified or learn more about business loan options for established businesses.