How do I qualify for a merchant cash advance?

Reviewed by Turan Zeynal, Managing Partner, Outset Funding Partners · Last reviewed July 17, 2026

TL;DR

To qualify for a merchant cash advance in the US, you generally need a business that has been operating for at least 6 months, a US business bank account, $10,000+ in average monthly revenue, and a personal credit score of 500 or higher. Underwriting is anchored to your last 3–4 months of business bank statements — daily deposit consistency matters far more than your FICO.

Quick facts

Time in business: 6+ months
Monthly revenue: $10,000+ average
Personal credit: 500+ FICO
Bank statements: Last 3 – 4 months
Negative days: Under 5 per month ideal
US business: Required
Industry: Most eligible; some restricted
Bankruptcy: Not active

The 60-second answer

MCA underwriting is a revenue story, not a credit story. Funders will pull a soft credit report, but the weight of the decision sits on your business bank statements: how much comes in, how often, and how thin your balances get. A 720 FICO with $6,000 in monthly deposits is usually a decline; a 540 FICO with $40,000 in clean daily deposits is usually an approval.

The fastest way to strengthen an MCA file is not to fix your credit — it's to reduce negative days and keep end-of-day balances positive for 60–90 days before applying. Funders count negative days directly; fewer negative days almost always means a better factor rate.

How it works, step by step

Gather the last 3–4 months of business bank statements
Complete PDF statements from your business checking account. Screenshots and partial exports usually get rejected.
Check that revenue clears the $10,000/month threshold
Look at total monthly deposits, not net. Consistent daily deposits beat one large deposit per month.
Count negative days
Any day your end-of-day balance is below zero is a 'negative day.' Under 5 per month is healthy; over 10 will hurt pricing or get you declined.
Confirm your entity and time in business
You'll need EIN, formation date, and business address. Sole proprietors qualify but often at higher factor rates.
Submit through a marketplace or direct funder
One application to a funding marketplace surfaces multiple offers; a direct application locks you to one funder's terms.

What underwriters actually look for in your bank statements

MCA underwriters read bank statements the same way a doctor reads bloodwork — they don't care about any single number, they care about the pattern. Four signals dominate the decision. First is average daily balance: an account that ends most days at $8,000+ tells a very different story than one that ends most days at $200, even if both do $30,000 in monthly deposits. Second is deposit frequency: 15–20 deposit days per month reads as a real operating business; three big deposits per month reads as a project-based business that could go dark next month.

Third is negative days and NSF fees. Two negative days in a month is a rounding error; eight negative days is a red flag that lowers your advance and raises your factor. Four or more NSF fees on a single statement will get most files declined outright, regardless of revenue. Fourth is existing MCA activity: any daily debit from another funder shows up immediately, and stacking a second position on top of an active first is the single most common reason a file that "should" approve gets declined.

The practical takeaway: if you're 60–90 days from applying, focus on keeping end-of-day balances positive and paying down or paying off any existing daily-debit position. Those two moves change pricing more than any credit score improvement you could realistically pull off in the same window.

Who qualifies

•US-based business entity (LLC, corp, sole proprietor)
•6+ months in operation (12+ months for best terms)
•$10,000+ average monthly gross revenue
•Active US business checking account
•500+ personal credit score
•Fewer than 5 negative bank days per month (typical)
•Not in active bankruptcy
•Industry not on the funder's restricted list

Frequently asked questions

What credit score do I need for an MCA?

Most MCA funders will consider applicants with a personal credit score of 500 or higher. Above 600, factor rates usually improve noticeably. Below 500, options are limited but not zero.

How much revenue do I need to qualify?

The baseline is around $10,000 in average monthly gross revenue for at least 3 consecutive months. Higher revenue and more consistent daily deposits unlock better terms.

Can a new business qualify for an MCA?

Most funders require at least 6 months of operating history and 3 months of bank statements. Under 6 months, options narrow sharply — a small starter position (often called a 'starter MCA') may still be available at higher cost.

What industries can't get an MCA?

Restricted industries typically include adult entertainment, firearms manufacturing, gambling, marijuana (still restricted at most funders), payday lending, and some crypto businesses. Restaurants, retail, medical, auto, salons, and most service businesses are broadly accepted.

Will applying hurt my credit?

Most MCA funders start with a soft credit pull that does not affect your score. A hard pull may happen at final underwriting with some funders — always confirm before accepting an offer.

How can I improve my chances of approval?

Reduce negative bank days, keep end-of-day balances positive, avoid opening multiple MCAs at once (stacking), and apply with 3–4 months of clean statements. These moves matter more than a modest credit score bump.

Sources

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