What Merchant Cash Advances Really Care About

Your sales history trumps your business plan. Unlike traditional bank loans that scrutinize your five-year projections, MCA providers focus on one thing: your daily credit card and debit card sales. They want to see consistent revenue flowing through your payment processing system because that's how they'll collect their money.

Cash flow is king. MCA lenders often want three to six months of bank and credit card processing bills. They're looking for steady revenue patterns, not elaborate growth strategies. A restaurant doing $10,000 in weekly card sales will likely get approved faster than a tech startup with a brilliant 50-page business plan but inconsistent revenue.

Speed over strategy. The whole appeal of merchant cash advances is speed—often funding within 24-48 hours. Requiring detailed business plans would slow down this process significantly, which defeats the purpose for both lenders and borrowers who need quick capital.

When a Business Plan Might Help

Larger advance amounts. If you're seeking a substantial MCA (typically over $100,000), some providers may want to understand your business model and growth plans. A simple one-page summary of your business, market, and how you'll use the funds can strengthen your application.

Seasonal businesses. If your revenue fluctuates dramatically throughout the year, a brief explanation of your seasonal patterns and how you manage cash flow during slow periods can help lenders understand your business better.

New business relationships. First-time applicants with a particular MCA company might benefit from providing context about their business, especially if their industry or revenue patterns are unusual.

What to Prepare Instead

Financial documentation. Focus on gathering your bank statements, merchant processing statements, and tax returns. These documents tell your revenue story better than any business plan.

Simple business summary. A one-page overview including your business type, how long you've been operating, average monthly revenue, and intended use of funds is usually sufficient.

Personal and business credit reports. While MCAs are less credit-dependent than traditional loans, your credit history still matters for approval and terms.

The Real Requirements

Minimum monthly revenue. Most MCA providers require at least $10,000-$15,000 in monthly credit card sales, though some will work with lower volumes.

Time in business. Typically 6-12 months of operating history, though some providers work with newer businesses that show strong sales.

No recent bankruptcies. Personal and business bankruptcy history will usually disqualify you or significantly impact terms.

Smart Strategy: Keep It Simple

Don't overthink it. The beauty of MCAs is their simplicity. Spending weeks crafting a detailed business plan for an MCA application is usually overkill and won't significantly improve your chances or terms.

Focus on what matters. Strong, consistent sales history and clean financial records will serve you better than the most polished business plan.

Be ready to explain your business. While you don't need a formal plan, be prepared to clearly explain what your business does, your typical customer, and how you plan to use the advance funds.

Before You Apply

Compare options. MCA rates and terms vary significantly.Shop around and understand the overall cost of your advance, including interest rates and costs.

Consider alternatives. MCAs are expensive financing. If you have time, explore business lines of credit, SBA loans, or equipment financing, which typically offer better rates for qualified businesses.

Plan your repayment. MCAs collect payments daily from your credit card sales. Make sure you can maintain operations while servicing the advance.

What Lenders Actually Look for Instead of a Formal Plan

When applying for a business loan, many people think they need a detailed, formal business plan. While a plan can help, lenders often focus on other important factors. Here’s what lenders really look for:

Your Credit Score  

A good credit score indicates that you are responsible with money. Lenders see this as a sign you'll repay your loan on time.

Cash Flow and Revenue  

Lenders want to know that your company generates enough revenue to pay back the loan. They assess your ability to repay by looking at your income and expenses.

Personal and Business Finances  

They review your personal finances and business financial statements. This helps them understand your financial health and stability.

Collateral  

Collateral is assets like property or equipment that can secure the loan. If you can offer collateral, lenders may feel more confident approving your loan.

Your Experience  

Lenders favor borrowers with experience in your industry. It shows you’re knowledgeable and more likely to succeed.

Loan Purpose  

Be clear about why you need the money—whether for equipment, expansion, or working capital. A clear purpose helps lenders trust your plan.

The Bottom Line

You don't need a business plan to get a merchant cash advance, but you do need strong sales data and clean financial records. Focus your energy on organizing your financial documentation rather than writing elaborate projections. The best "business plan" for an MCA application is a history of consistent, healthy revenue that shows you can handle daily payments while keeping your business profitable.

Remember: MCAs are a tool for established businesses with steady cash flow needs, not a solution for businesses still figuring out their revenue model. If you're still in the planning stages, consider whether you're ready for this type of financing.