What is a merchant cash advance?
A merchant cash advance (MCA) is upfront capital, $5K to $500K, that you repay by giving the funder a fixed percentage of your daily or weekly revenue until a set total is paid back. Technically it's not a loan at all: it's a purchase of your future receivables. MCAs are among the fastest and most accessible funding products in existence, and also among the most expensive, which is exactly why you should understand the math before a salesperson does it for you. Quordx Capital brokers MCAs but treats them as a tool for specific situations, never a default, and always shows the true cost first.
One option in our guide to Alternative Financing.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
How an MCA Works, Including the Real Cost
Instead of an interest rate, an MCA uses a factor rate, typically 1.15 to 1.50. Two features make MCAs different from loans. First, repayment flexes with revenue: the funder takes an agreed percentage of daily or weekly sales, so payments shrink in slow weeks and grow in busy ones. Second, the cost is fixed at signing: paying early does not reduce what you owe, unlike a loan where early payoff saves interest.
Because repayment can compress into months, the effective annualized cost often far exceeds what the factor rate suggests. The accessibility is real, though: 3-6 months in business, roughly $10K+ monthly revenue, and credit scores from around 500-550 can qualify, with funding in as little as 1-3 business days.
Before You Take an MCA, Compare These
Working capital loans: ($5K-$500K): Best first alternative; similar speed and accessibility, conventional loan structure, often cheaper.
Business lines of credit: ($10K-$250K+): Best for recurring gaps; interest only on what you draw, at 10%-35%+ APR online.
A/R financing / invoice factoring: (70-90% advanced): Best for B2B businesses; unlocks cash you've already earned at a typically lower cost.
Equipment financing: ($5K-$5M+): Best if the cash need is equipment; collateralized rates commonly run 7%-20%.
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How Quordx Capital Works
One five-minute application lets Quordx Capital's matching process scan a 50+ lender network and return 3-7 best-fit options ranked by approval probability, including cheaper alternatives to an MCA whenever your profile supports them. Decisions usually arrive in 24-48 hours; funding in 3-7 business days, faster for some products.
What to Expect
Expect the full math, in writing, before anything moves: total payback, the revenue percentage, and what that implies if sales dip. If an MCA is genuinely your best available option, sometimes it is, Quordx Capital will say so; if it isn't, Quordx Capital will decline to push it. Borrowers pay nothing for the matching, and looking obligates you to nothing.
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Written by
Cody Dreis
Founder, Quordx Capital
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Quordx Capital is a business funding broker, not a lender. Lenders make every credit decision and set the rate, fees and terms, and not every business qualifies. Quordx may be paid by a lender when a deal funds. Full disclosures