Your driver’s license or passport to verify identity
Three or more months of credit card processing statements
One or two years of business tax returns
Recent business bank account statements
A voided business check
Merchant cash advances are among the more expensive business funding options because providers often approve businesses with less-than-perfect credit or shorter operating histories, which increases the risk of default.
Another reason MCA costs are higher is that most small business cash advance providers, including WelendLoans, don’t require personal guarantees or collateral. Without collateral, if your business closes before the advance is repaid, the provider cannot claim company equipment, inventory, or personal assets.
Unlike traditional loans, MCAs don’t charge interest. Instead, fees are based on a factor rate, typically ranging from 1.1 to 1.48. To calculate the total cost, multiply the advance amount by the factor rate. For example, a $10,000 advance at a 1.15 factor rate results in a repayment of $11,500 — the $10,000 advance plus a $1,500 fee.
Some providers may also charge an origination or closing fee of 1–2% of the borrowed amount, adding $100–$200 to a $10,000 advance.
The holdback percentage of daily sales also affects the total cost. This percentage is set based on:
The advance amount
Average monthly credit card sales
Repayment timeframe
Holdback percentages typically range from 10–20% of daily card processing volume. Higher percentages pay off the advance faster but increase overall costs and can strain cash flow for payroll, utilities, taxes, and other expenses.
To understand the real cost, you can use an MCA calculator to convert the factor rate into an interest rate over different repayment periods. For a $10,000 advance at 1.15 factor rate:
12-month repayment: 15% interest
6-month repayment: 30.42% interest
For a 1.48 factor rate:
12 months: 48% interest
6 months: 97.33% interest
Some WelendLoans agreements include early repayment discounts, which can reduce the total cost if you pay off the advance before it’s due.
| General Industry Requirements | National Funding | Reliant Funding | OnDeck | |
|---|---|---|---|---|
| Amount Available | $5,000 - $500,000 | $5,000 - $300,000 | $5,000 - $500,000 | $5,000 - $100,000 |
| Speed of Funding | As little as 2 days | Within 2 hours of accepting the terms | Next day after offer accepted | As soon as 24 hours after approval |
| Required Documents |
|
|
|
|
| Personal Credit Score | 550 | 525 | N/A | 600 |
| Time in Business | Over 2 years | 1 year | N/A | 1 year |
| Cash Flow Required | Over $180,000 | $150,000 | $10,000/month | $100,000 |
| Cost of Funding | 1.14 - 1.18 factor rate |
|
N/A |
|
| Payback Terms | Paid daily via your merchant account | 6 - 15 months | N/A | 6 - 12 months |
| Personal Guarantee? | n/a | Yes | n/a | n/a |
| Pros |
|
|
|
|
| Cons |
|
|
|
|
| Best For | Businesses that need cash fast and can't offer collateral | Businesses needing quick, accessible financing | Businesses with no other loan options | Borrowers needing fast access to funding |
