The Bottom Line
Variable Revenue Needs Variable Repayment.
Restaurants, retail operators, and seasonal businesses face variable monthly revenue. A fixed monthly loan payment during your slow season is a cash flow liability. An MCA repays proportionally — slowing when you slow, accelerating when you grow.
1.1×–1.5×
Factor Rate Range
$2k+
Minimum Advance
48h
Avg. Approval
Best Fit Industries
MCAs are purpose-built for businesses with variable or seasonal revenue:
- Restaurants & cafes — Variable daily and weekly revenue fluctuates with traffic
- Retail and eCommerce — Holiday peaks, slow seasons, and inventory cycles
- Service businesses — HVAC, landscaping, and other seasonal service operators
- Contractors — Project-based revenue that arrives in irregular intervals
MCA vs. Revenue-Based Loan
| Factor | Merchant Cash Advance | Revenue-Based Loan |
|---|---|---|
| Repayment frequency | Daily or weekly | Monthly |
| Repayment basis | % of daily deposits | % of monthly revenue |
| Approval speed | 24–48 hours | 24–72 hours |
| Minimum revenue | $5,000/month | $10,000/month |
| Best for | Variable/daily revenue | Recurring/monthly revenue |
| Equity impact | None | None |
FAQs
An MCA is an advance against future revenue repaid as a daily or weekly percentage of business receipts. Repayment flexes with your actual revenue. Not technically a loan — it is a purchase of future receivables.
MCAs repay daily or weekly from card sales or bank deposits. Revenue-based loans repay monthly. MCAs are faster to access. Both are non-dilutive. MCAs work better for daily-revenue businesses like restaurants.
MCA factor rates typically range from 1.1 to 1.5. A $50,000 advance costs $55,000–$75,000 to repay. Factor rates depend on revenue consistency, time in business, and industry profile.