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MCA & Alternatives · 2026

Merchant Cash Advance for Contractors — How It Works & Smarter Alternatives

An MCA is fast and credit-flexible, but factor rates can bite. Here's how it works for contractors and the lower-cost options worth comparing first.

Short answer: A merchant cash advance (MCA) gives contractors fast cash repaid as a fixed daily or weekly amount, or a share of deposits. It's quick and credit-flexible (FICO 500+), but MCAs use factor rates (e.g. 1.2–1.5) that can be expensive. For most contractors, revenue-based funding or a line of credit delivers similar speed at a lower effective cost — all available through Contractor Capital Advance.

MCA vs. the smarter alternatives

How a merchant cash advance compares to the options contractors more often choose. All offered through Contractor Capital Advance.

OptionCost basisRepaymentBest for
Merchant Cash AdvanceFactor rate ~1.2–1.5Fixed daily/weeklyFastest cash, weakest credit
Revenue-Based FundingLower factor / % of revenueFlexes with depositsSeasonal / uneven cash flow
Business Line of CreditInterest on what you drawRevolving, reusableOngoing needs between jobs
Term LoanFixed interest rateFixed monthlyPredictable, larger projects

How we do it differently

  • We compare MCA against lower-cost options before you sign
  • Revenue-based structures flex with your deposits
  • Lines of credit you can reuse job after job
  • FICO 500+ accepted; approval on revenue
  • Funds in as little as 24 hours
  • Help refinancing out of an expensive existing MCA

What you need to apply

  • US-based contracting business
  • 6+ months in business
  • ~$30,000+ in monthly revenue
  • Last 3 months of bank statements
  • Valid EIN and business bank account

Frequently asked questions

What is a merchant cash advance for contractors?
A merchant cash advance is a lump sum of capital repaid as a fixed daily or weekly debit, or a percentage of your deposits. It funds fast and accepts weaker credit, but is priced with a factor rate rather than an interest rate.
Is an MCA a good idea for a contractor?
An MCA can make sense for a fast, short-term need when other options aren't available. But because factor rates can be costly, most contractors should first compare revenue-based funding or a line of credit, which often deliver similar speed at a lower effective cost.
What is a factor rate?
A factor rate (for example 1.3) is multiplied by the advance amount to set total payback — so a $50,000 advance at 1.3 repays $65,000. Unlike interest, it doesn't reduce as you pay down, which is why the effective cost can be high.
How do I get out of an expensive MCA?
Refinancing or consolidating an existing advance into a lower-cost revenue-based facility or line of credit can cut your daily payments. We can review your current advance and structure a payoff.
How fast can I get funded?
Most contractors fund within 24 hours of approval. The application takes about 5 minutes with a soft credit pull that doesn't affect your score.

Get funded the smart way

Apply in 5 minutes with a soft credit pull. We'll show you the lowest-cost option you qualify for.

Apply Now →

Factor rates and figures shown are illustrative 2026 industry examples and vary by underwriting; actual terms are set at application. A merchant cash advance is a commercial financing product, not a loan in all states. Product and company names referenced are the property of their respective owners.