Questions, answered plainly

A merchant cash advance is a purchase of a fixed amount of a business’s future revenue in exchange for upfront capital, repaid as a percentage of daily or weekly sales rather than fixed loan installments.

No — a merchant cash advance is not a loan. It’s a commercial transaction in which a funder purchases a portion of future receivables, which is why repayment scales with sales instead of following a fixed installment schedule.

Cost is expressed as a factor rate rather than an interest rate or APR: the advance amount multiplied by the factor equals the total payback. The factor depends on the business’s revenue stability, time in business, and existing obligations — and the exact total payback, payment amount, and term are disclosed in writing before you accept an offer.

A completed application and your most recent business bank statements cover most requests. Larger amounts may also call for a copy of your ID, a voided check, or a recent processing statement.

Businesses working with Vertex Capital typically receive a funding decision within hours and can receive funds the same day they accept an offer, once bank statements and a completed application are submitted.

Not necessarily. Vertex Capital evaluates monthly revenue and cash flow trends from bank statements as the primary underwriting factors, so credit score alone does not determine approval.

Both tie repayment to a percentage of revenue, but revenue-based financing is typically structured for higher-growth or subscription businesses with longer terms, while merchant cash advances are typically shorter-term and used for immediate working capital needs.

Most legitimate business purposes — inventory, payroll, equipment, expansion, or covering a seasonal cash flow gap.

Submit a completed application with recent business bank statements to our partner desk. Most submissions get an underwriting decision within hours, and partners can track status in the broker portal.