What Types of Businesses are Eligible for a Merchant Cash Advance?

Imagine this: you operate a busy cafe, and the espresso machine, the beating heart of your operation, breaks down. You need a replacement now, not six weeks later, after some bank loan committee decides to grant approval. Alternatively, you operate a retail store and find a compelling wholesale opportunity, but it requires cash now. That's where merchant cash advances, or MCAs, are a good fit and can provide rapid capital when timing is tight.

But the big question remains: is your business eligible? The good news is that MCAs are surprisingly accessible for a wide range of enterprises. Let's look at who typically qualifies and why.

The Credit Card Connection

Understanding MCAs starts with how they're built: they revolve around credit card sales. Providers advance your money based on your future credit and debit card transactions and recover their investment by taking a percentage of your daily card sales. That means businesses with substantial card transactions are ideal candidates. If your customers mostly pay with plastic-whether by tap, swipe, or insert-you're already in the running.

Restaurants and Cafes The Sweet Spot

Among the most common recipients of MCAs are food-service venues, and for very good reason. The restaurants, cafes, food trucks, and bars usually process large volumes of card transactions every day. Whether you are serving up a fine, rich coffee or a hearty meal, a constantly busy point-of-sale system makes you an attractive candidate in the eyes of the MCA providers. With the tight margins and seasonal swings in the restaurant business, many food-service owners continue to seek alternative financing in MCAs when traditional bank loans may be out of reach.

Retail Businesses: Boutiques to Big Boxes

Merchant cash advances are available for retail stores of all sizes. Whether you operate a fashion-forward clothing store, a hardware store, a gift shop, or a specialty electronics retailer, consistent credit card processing keeps you eligible. Even seasonally driven businesses think holiday shops or beachwear outfits-can access MCAs, though the advance amount usually reflects your average monthly processing volume rather than just peak-season figures.

Service-Based Businesses: More Than You'd Expect

You could be thinking MCAs apply to product-based businesses only, but service-based companies are not an exception. Salons, spas, auto shops, dental offices, gyms, and cleaning services process card payments regularly. If your clients pay for your services with plastic, you may be potentially qualified. The key is in providing consistent transaction volume to show you can pay back the advance through ordinary operations.

E-commerce and online business:

With an increasingly digital world, online businesses are at a great advantage with MCAs. As an owner of an e-commerce store, a subscription service, or any online operation accepting payments using platforms such as Shopify, WooCommerce, or processors like Stripe and Square, you are in luck. In fact, some MCA providers specialize in working with online businesses, knowing the specific rhythms of digital commerce.

Professional Services: Yes, Even You

Any professional services-based business, such as a lawyer, consultant, accountant, marketing agency, or any other professional service-based business, probably doesn't think of themselves as an MCA candidate. If you accept credit cards from clients-even if that isn't your primary method-you could qualify. If card processing is not your main source of revenue, an advance amount may be smaller; however, for businesses with a relatively modest volume of processing, the option does exist.

The Basic Eligibility Requirements

While specifics vary depending on the provider, MCAs share several elements. Typically, you’ll need: 

• The lowest monthly credit card processing volume normally ranges between $5,000 and $10,000. 
• At least six months to a year in business 
• Stable income showing ability to repay 
• No active bankruptcies

What's not required? Perfect credit. Though some providers check credit scores, MCAs are typically more forgiving than traditional loans because they're secured by your future sales.

Who May Be Affected?

For businesses that are mainly cash- or check-based, such as certain contractors, cash-heavy service providers, and B2B firms that invoice on net-30 terms, traditional MCAs may be more difficult to secure. Many providers still offer other vehicles, such as invoice factoring or alternative financing structures, that can help. 

The Bottom Line 

If your business accepts credit cards with any regularity, you're likely eligible for a merchant cash advance. The beauty of MCAs lies in their accessibility-designed for real businesses facing real cash-flow challenges, not just those with pristine financials. The question isn't only "Am I eligible?" but "Is this the right solution for my specific situation?" That's a conversation worth having with potential providers.