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Working Capital & Revenue-Based Financing (MCA)

When you need cash quickly for short-term needs or to seize an opportunity, working capital and revenue-based financing can provide fast access to funds based on your business’s sales—not just your credit score.

What Is Working Capital / MCA Financing?

Working capital and merchant cash advance (MCA) style products provide a lump sum of cash today in exchange for a portion of your future revenue. Instead of a traditional fixed loan with a long term, these facilities are designed to be paid back over a shorter period using a share of daily or weekly sales or fixed periodic payments.

When This Type of Funding Makes Sense

  • You need capital quickly and can’t wait for a lengthy underwriting process.
  • You’re covering a short-term gap or funding a project you expect to pay off soon.
  • Your revenue is strong, but traditional options are limited or slower.
  • You want simple documentation and speed more than the lowest possible long-term cost.

Common Uses for Working Capital Funding

Inventory & Supplies

Buying extra inventory ahead of busy seasons or to capture bulk pricing from suppliers.

Marketing & Advertising

Launching campaigns that you expect to generate near-term revenue and repeat customers.

Payroll & Staffing

Bridging short payroll gaps during growth, seasonality, or delays in accounts receivable.

Short-Term Projects

Funding quick improvements, repairs, or opportunities with a clear short payoff timeline.

How Revenue-Based / MCA Structures Work

The exact structure varies by provider, but generally:

  1. You receive a lump sum advance based on your recent monthly revenue.
  2. You agree to repay a predetermined total amount (the advance plus fees).
  3. Repayments are made either as:
    • A fixed daily or weekly payment drafted from your bank account, or
    • A percentage of your card/bank deposits until the balance is repaid.
  4. As revenue fluctuates, your repayment speed may adjust (depending on structure).

Example Scenarios

Scenario 1 – Restaurant Expanding Catering

A restaurant wants to launch a catering line before the holiday season. A working capital advance funds marketing, additional staff, and supplies. The extra revenue generated over the next few months helps pay off the advance.

Scenario 2 – E-Commerce Brand Scaling Ad Spend

An online brand has a profitable ad campaign but limited cash to scale it. A revenue-based facility provides capital tied to sales, allowing them to increase ad spend and repay the advance as revenue flows in.

Scenario 3 – Service Company with Slow-Paying Clients

A service business has strong contracts but waits 30–60 days for payment. A working capital advance covers payroll and operations while invoices are outstanding.

What Providers Look At

Working capital and MCA providers focus heavily on your **recent revenue** and **cash flow**, often more than on traditional collateral. They typically review:

  • Average monthly revenue (often based on the last 3–6 months of bank statements).
  • Daily balances and cash-flow patterns.
  • Number and frequency of deposits.
  • Existing daily/weekly payment obligations.
  • Time in business and industry type.

What You May Need to Provide

  • Recent business bank statements (commonly 3–6 months).
  • Basic business information and ownership details.
  • Voided check and ID for funding and repayments.
  • Sometimes recent tax returns or financials for larger amounts.

Pros & Things to Watch For

These products can be very useful tools when used intentionally. It’s important to understand both the benefits and the tradeoffs:

Advantages

  • Fast approvals and funding.
  • Revenue-focused underwriting (helpful when collateral is limited).
  • Simple documentation compared to bank loans.
  • Can unlock growth opportunities that have a quick payback.

Considerations

  • Typically higher overall cost vs. traditional term loans or SBA.
  • Frequent payments (daily/weekly) can strain cash flow if not planned well.
  • Best used for short-term needs and clear ROI—not long-term projects.

Working Capital vs. Term Loans vs. Lines of Credit

Think of working capital / MCA products as **speed and flexibility tools**:

  • Working Capital / MCA: Fast, short-term, revenue-based. Best when you expect a quick return.
  • Term Loans: Structured, longer-term, better for larger projects and consolidation.
  • Lines of Credit: Revolving and flexible, ideal for repeat cash-flow gaps and smaller, ongoing needs.

How Fast Finance Helps

Fast Finance helps you use working capital financing strategically—not just as a last resort. We work with you to:

  • Estimate a comfortable daily or weekly payment range based on your cash flow.
  • Compare offers and structures from multiple working capital providers.
  • Decide whether working capital, a line of credit, or a term loan (or a mix) makes the most sense.
  • Plan how to use the funds so they pay for themselves as quickly as possible.

Need capital fast for a short-term gap or opportunity? Check my working capital options