The best merchant cash advance for a new business is one that accepts your short time in operation and reads your recent deposits. Merchant Fund Express is our recommended funder because it reviews sales and deposits, considers credit from FICO 500+ and often decides in 2 to 4 hours. Credibly asks for at least 6 months in business, and if you take cards through Square or sell on Shopify, your own platform may offer financing based on your sales there.
A merchant cash advance (MCA) isn't a loan: the funder buys a share of your future sales and collects it from your deposits or card sales. That's why it can approve young businesses a bank would turn down, but it generally costs more than a loan. Below is the ranked list and a straight way to decide whether it makes sense now or whether waiting a few months is the smarter move.
Key takeaways
- A cash advance buys part of your future sales; it approves young businesses but usually costs more than a loan.
- Merchant Fund Express reviews sales and deposits, works with FICO 500+, and decisions often come in 2 to 4 hours.
- Credibly asks for 6 months in business, $20,000 in monthly revenue and 550+ credit.
- Square and Shopify Capital collect a percentage of your daily sales if you already sell on their platforms.
- If you can wait until month 6, or you qualify for a microloan, you may save a lot.
How we ranked these options
We don't give ratings or invented scores. We compare each option on the same criteria: decision speed, minimum time in business, minimum credit, whether it accepts an ITIN or owners without an SSN, documents required, amounts and collateral. We only include details each company publishes on its official site (checked October 20, 2026); if we couldn't confirm something, we left it out. For new businesses, the criterion that weighed most was the minimum time in business each company publishes. The full method is in how we rank business funding options.
The best cash advances for new businesses, ranked
- Merchant Fund Express (recommended funder). For a business that's only a few months old, what counts is what hits the bank. Approval is based on sales and deposits, not just credit, and it considers profiles from FICO 500+. It handles $5,000 to $5,000,000, doesn't require collateral in most cases, and applying is free with no impact to your credit. It also accepts ITIN applicants (no SSN needed) and offers Spanish-speaking support. Apply here with your bank statements since you opened.
- Credibly. It publishes clear requirements for its advance: at least 6 months in business, an average of $20,000 or more in monthly revenue, 550+ credit, U.S. operations and revenue deposited into a bank account. Amounts run from $5,000 to $600,000, and it advertises approvals in as little as 2 hours. If you've already hit 6 months with solid sales, it's a strong option.
- Square financing. If you take payments with Square, you may receive loan offers from Square Financial Services. Per its website, you repay with a fixed percentage of your daily card sales: sell more one day and you pay more; sell less and you pay less, with minimum payments spelled out in your offer. The cost depends on your processing history.
- Shopify Capital. For online stores on Shopify. It publishes financing up to $2 million with no credit check and no impact to your personal score, repaid with a percentage of daily sales over a maximum of 18 months. Offers only go to eligible merchants based on their sales on the platform.
- SBA microloan. Not an advance, but worth comparing. Community nonprofits lend up to $50,000 with SBA funds to start or grow a business, with a maximum term of 7 years. It's slower, but much cheaper than an advance.
Comparison table
| Option | Published minimum time | Credit | Amounts | How you repay |
|---|---|---|---|---|
| Merchant Fund Express | Based on sales and deposits | FICO 500+ | $5,000 to $5,000,000 | Per the offer |
| Credibly | 6 months | 550+ | $5,000 to $600,000 | Daily or weekly |
| Square | Based on your Square history | Subject to approval | Per your offer | % of daily card sales |
| Shopify Capital | Based on your Shopify sales | No credit check | Up to $2 million | % of daily sales, 18 months max |
| SBA microloan | Can be used to start | Set by the lender | Up to $50,000 | Installments, up to 7 years |
For the wider picture beyond cash advances, see the best business funding for startups.
Should you take an advance with only a few months in business?
Before you accept an advance this early, ask yourself these honest questions:
- Will the money produce sales soon? Inventory that already has a buyer, or equipment that lets you serve more customers, can pay for itself. Covering losses for a business that isn't self-sustaining yet generally won't.
- Are your sales stable? In the first months, sales swing a lot. A fixed daily debit can choke you in a slow week. If that's you, prefer repayment that's a percentage of sales.
- Can you wait until month 6? Six months of deposits gets you more options and better offers. If it isn't urgent, waiting is sometimes the best financial decision you can make.
- Have you tried cheaper options? A microloan, a business credit card or a small line of credit may cost less.
How to set up a new business to qualify
A new business has little history, so every deposit counts. To improve your odds from month one:
- Open a business account on day one and deposit all your sales there: card, cash, Zelle and delivery apps.
- Avoid overdrafts and negative days. To a funder, an account that hits zero every week is a red flag.
- Get your EIN and register the business properly with your state, with licenses current.
- Keep your contracts and invoices. If you have a signed contract with a big client, show it: it explains why you need the money now.
- Know your personal credit before applying. In a new business, personal credit carries more weight because the business has no history of its own yet.
To see what funders look at in your file, read about approval by bank deposits vs. credit score.
How to read a cash advance offer
When an offer arrives, don't stop at the headline amount. Go through these parts of the contract one by one:
- Amount you actually receive. Some funders deduct origination or closing fees from the approved amount. Ask how much really lands in your account.
- Total amount to be repaid. In an advance it's often called the "purchased amount." It's what the funder will collect from your sales in total.
- Factor rate. The number that turns what you receive into what you repay. It isn't an annual rate, so don't compare it directly with a loan's APR.
- Holdback percentage or fixed payment. If collection is a percentage of sales, it drops when you sell less. If it's a fixed payment, it won't drop on its own; ask whether there's a reconciliation process when sales fall.
- Collection frequency. Daily or weekly. For a new business with uneven sales, weekly can be easier to plan around.
- Personal guarantee and other clauses. Read what happens if you close, switch banks or take other financing.
If an offer doesn't let you see these points clearly, ask for them in writing before signing. A serious funder will explain them without rushing you. And if the debit would leave you without room for rent and payroll, ask for a smaller amount or wait until you have more history. Our guide to merchant cash advance costs explains pricing in plain words.
Common mistakes new businesses make
- Taking the maximum you're offered. Take what you need. A smaller amount means a smaller cut of your sales.
- Stacking advances. A second advance on top of the first is one of the most expensive mistakes we see in young businesses.
- Not asking how collection works. Daily or weekly? Fixed amount or percentage of sales? What happens if sales drop?
- Confusing a factor rate with an interest rate. An advance uses a factor, not an annual rate. Get the total cost in writing and compare it with other offers.
- Believing anyone who promises the money no matter what. No serious funder approves without reviewing your numbers.
Frequently asked questions
How many months in business do I need for a merchant cash advance?
Each funder decides. Credibly publishes a 6-month minimum. Merchant Fund Express reviews your current sales and deposits, so it's worth applying to see your options; applying is free and doesn't affect your credit. With fewer than 3 months of deposits, options are very limited.
Can I get a cash advance if my business is 3 months old?
It's hard, but it depends on your sales. If you process cards through Square or sell on Shopify, the platform may make you an offer based on your sales there. If not, consider an SBA microloan, which can be used to start a business, or wait until you have more months of deposits.
Does a startup cash advance check my personal credit?
Most do, though it weighs less than at a bank. Credibly asks for 550 or higher; Merchant Fund Express considers profiles from FICO 500+. Shopify Capital says it doesn't check credit. In a new business, your personal credit matters more because the business has no history of its own yet.
What happens if my sales drop after I take an advance?
It depends on the contract. If repayment is a percentage of your sales, as with Square or Shopify Capital, you pay less on slow days. If it's a fixed daily or weekly amount, ask before signing whether it can be adjusted and how you request that.
Is a cash advance or a business credit card better when starting out?
For small amounts and expenses you pay off quickly, a business card usually costs less. An advance makes sense when you need a larger sum at once and your sales can support the collections. Compare the total cost in writing before you decide.