If your business takes card payments, your best options are the ones that use those sales as the foundation: sales-based financing like Merchant Fund Express, our recommended funder, which reviews your deposits and offers $5,000 to $5,000,000; the advance your own processor offers, convenient for small amounts; and, if you have good credit and years in business, a line of credit, a term loan or an SBA loan, which usually cost less.
Card sales leave a clear, daily paper trail, and that opens a repayment method other businesses do not get: a percentage of your sales. Below we explain how it works, give you the ranked list and a comparison table, and show you how to choose. Leer en español.
Key takeaways
- Card sales leave a daily record that sales-based funders read very well.
- Some advances are repaid with a percentage of your card sales (holdback or split), which drops when you sell less.
- The advance from your processor is convenient but usually limited to small amounts: compare its cost.
- With good credit and years in business, a line of credit or an SBA loan usually costs less.
- Switching processors with an active advance may be restricted by your contract: read it first.
- Always get the total cost in writing and compare it with at least one other offer.
The best options for businesses that take cards, ranked
- Merchant Fund Express (recommended funder). Best for businesses with steady card sales that need capital fast and larger amounts than their processor offers. It reviews your sales and deposits, not just your credit; it accepts scores from FICO 500, often decides in 2 to 4 hours and, in most cases, does not require collateral. Offers improve with stronger credit and cash flow. It also offers Spanish-speaking support and accepts applicants with an ITIN (no SSN needed).
- Advance offered by your payment processor. Best if you already see an offer inside your processor account and need a small amount. It is convenient because the payment comes out of your sales automatically. It is usually capped by what the processor sees of your business, and it is not always the cheapest: compare it.
- Business line of credit. Best if your needs change through the year. You draw what you need and pay interest only on that.
- Term loan. Best for a one-time investment, like a remodel or a piece of equipment, with a fixed payment and a set term.
- SBA 7(a) or SBA Express loan. Best if your taxes are current, you have financial statements and you have time. The SBA caps the maximum rate its lenders can charge; 7(a) goes up to $5 million and SBA Express up to $500,000. Since March 2026, every owner must be a U.S. citizen or U.S. national.
- Business credit card. Best for small purchases you pay in full each month.
Comparison table
| Option | Speed | How you repay | What matters most | Amounts |
|---|---|---|---|---|
| Merchant Fund Express | Decision often in 2 to 4 hours | Depends on the offer | Sales and deposits; from FICO 500 | $5,000 to $5,000,000 |
| Processor advance | Very fast if you already have an offer | Percentage of your card sales | Your history with the processor | Based on what you process with them |
| Line of credit | Days to weeks | Payments on what you draw | Credit and history | Set by the lender |
| Term loan | Days to weeks | Fixed payments | Credit, time and sales | Set by the lender |
| SBA 7(a) / Express | Weeks or more | Monthly payments | Credit, cash flow and paperwork | Up to $5 million / $500,000 |
| Business card | Days | Monthly payment | Your credit | Limit based on your profile |
How we rank: no ratings or scores. We sort by speed, time in business, minimum credit, ITIN acceptance, documents, amounts and collateral. Details in how we rank business funding options.
Why taking cards gives you an edge
When a customer pays by card, the sale is recorded: date, amount and frequency. For a funder, that is far easier to read than a drawer full of cash. The concrete advantages:
- A clear history. Your bank statements and processor reports show real daily sales, which makes a quick decision easier.
- A payment that flexes. Some advances are repaid with a fixed percentage of your card sales. If you sell less one day, you pay less that day.
- Less reliance on your score. A business with strong card sales can qualify even if the owner has average credit.
The downside: that convenience can lead you to take more expensive capital than you need without shopping around. Easy does not mean best.
This applies to almost any counter-service business: restaurants, coffee shops, bakeries, clothing stores, salons, auto shops and clinics. The more even your card volume, the faster a funder can understand your business.
What funders look at in your card sales
Every funder has its own process, but for a business that takes cards they usually check the same things:
- Monthly card volume. How much you process on average and whether it is rising, falling or holding steady.
- Number of transactions. Many small sales, as at a coffee shop or taqueria, usually read as stable revenue. A few large sales, as at an auto shop or furniture store, get a closer look.
- Chargebacks and refunds. A lot of chargebacks can be a concern, because they cut into sales and can signal customer problems.
- Negative days in your account. Even if you sell well, frequent overdrafts weigh against you.
- Other active advances. If there is already a holdback or a daily debit on your statements, the funder will see it.
- Seasonality. If your sales drop in certain months, say so; it is better for the funder to understand that from the start.
A practical tip: if you use two processors, say one at the counter and another for online orders, send reports from both. That way your real volume shows in full and the offer can be better.
Holdback, split and fixed debit: how the payment is collected
If you choose a merchant cash advance, the payment can be collected three ways. Understand them before you sign:
| Payment method | How it works | Who it suits |
|---|---|---|
| Holdback | A fixed percentage of your card sales goes to the funder | Businesses whose sales swing a lot from day to day |
| Split with the processor | The processor sets the percentage aside before depositing your funds | Businesses that do not want to think about the payment |
| Fixed debit (ACH) | A fixed amount leaves your account every day or week | Businesses with very even sales |
With a holdback or split, the payment drops when your sales drop, but the term stretches. With a fixed debit, you know exactly what you pay, but a slow week can squeeze you. We explain it in detail in what split funding is and what an MCA holdback is.
One important detail: if your advance is collected by split, your contract may limit switching processors while you are still repaying. Read it before you sign, especially if you are thinking about moving for better rates.
How to choose, and mistakes to avoid
| Your situation | Where to start |
|---|---|
| You need a little and already have an offer from your processor | Compare it with at least one other offer before accepting |
| You need more than your processor offers | Sales-based financing |
| Your sales swing a lot between weekdays and weekends | Advance with holdback or split |
| Even sales, and you want to know the exact payment | Term loan or fixed debit |
| Good credit, years in business, no rush | SBA or line of credit |
| Seasonal expenses that repeat every year | Line of credit |
For example, a restaurant that sells double on weekends is usually more comfortable with a percentage-based payment than with a fixed Monday-to-Friday debit. A store with very steady sales may prefer to know exactly what it pays.
Mistakes to avoid:
- Accepting the processor offer without comparing. It is convenient, but not always the cheapest.
- Taking two holdback advances at once. Two percentages of your sales can leave you without cash to operate.
- Confusing percentage with cost. A low holdback percentage does not mean a low total cost; it just means you repay more slowly.
- Switching processors without checking your contract. There may be clauses while you have a balance outstanding.
- Leaving cash out. If you also take cash, deposit it; it adds to your visible sales.
How to apply
- Download three to six months of business bank statements and, if you can, your processor's monthly reports.
- Write down your average monthly card sales and your slow months.
- Define what the money is for and the exact amount.
- Get offers in writing: total cost, repayment method (holdback, split or fixed debit) and what happens if you pay early.
If your business has steady card sales and you need capital, you can apply with Merchant Fund Express. Applying is free and does not affect your credit. To understand the product step by step, read what a merchant cash advance is.
Frequently asked questions
What is a loan based on card sales?
It is financing approved by looking at your sales and deposits, and often repaid with a percentage of your card sales or a fixed debit from your account. Technically, many are merchant cash advances rather than traditional loans. Always ask how the payment is collected and what the total cost is.
Should I accept the advance my payment processor offers?
It can make sense if you need a small amount right away, because the process is simple. But compare it with at least one other offer: cost and amount vary. Also check whether it requires you to stay with that processor while you repay.
Can I switch processors if I have an active advance?
It depends on your contract. If the payment is collected by split or holdback through your processor, the contract may restrict or set conditions on switching while you have a balance. Read it and, if you plan to switch, talk to your funder first to agree on how the payment will be collected.
Can I get business funding if most of my sales are on cards?
Yes, and it is usually an advantage. Sales-based funders read card sales very well because they leave a clear record. With our recommended funder, decisions often come in 2 to 4 hours and profiles from FICO 500 are considered.
Which is better: a percentage-based payment or a fixed payment?
If your sales swing a lot between days or seasons, a percentage-based payment adjusts better. If your sales are even and you want to know exactly what you pay, a fixed payment can be easier to plan around. Either way, compare the total cost, not just the percentage or the payment amount.
Do my cash sales count too?
Only if you deposit them into the business account. Funders usually look at your full bank statements, so deposited cash adds up. Cash you do not deposit does not exist as far as they can see, and it makes your sales look lower than they are.