Eligibility
Merchant Cash Advance Requirements
Twelve months of deposits, a 500 score and three months of bank statements is the short version. Here is what each requirement actually means, what an underwriter reads in your statements, what disqualifies a file, and what you are entitled to see before you sign.
What Are the Requirements for a Merchant Cash Advance?
Through RAN Funding: at least twelve months of revenue deposited into a business bank account, consistent monthly deposits, a credit score from 500, the last three months of business bank statements (four in some states), a one-page application, a voided business check and ID, and a minimum advance of $10,000. No collateral, tax returns or business plan are required. Card sales help but are no longer essential, because most advances are now repaid by a fixed ACH debit rather than a card split.
The Short List
A merchant cash advance has the shortest requirements list of any product in the network, which is why it is the one most owners with a thin or bruised file start with. Through RAN Funding, the practical requirements are:
- 12 or more months in business (6 months is sometimes possible), measured as months of revenue deposited into a business bank account.
- Consistent business deposits. The advance is sized on them, so they are the whole underwriting story.
- A credit score from 500. Credit is read, not gating.
- The last three months of business bank statements. Some states require four.
- A one-page application, a voided business check and a government ID.
- A minimum advance of $10,000.
What is not on the list is telling: no collateral, no tax returns, no business plan, no minimum credit score in the bank sense. The advance is a purchase of future receivables, not a loan, and the funder’s question is simply whether the receivables will show up.
What “Consistent Deposits” Means in Practice
An underwriter opens your statements and reads four things before anything else:
| What they read | Why it matters | Helps | Hurts |
|---|---|---|---|
| Deposit count | Frequency shows a trading business | Many ordinary deposits | Two large ones a month |
| Average daily balance | Shows room for the daily or weekly debit | A steady cushion | Balance that hits zero mid-month |
| Negative and NSF days | The single biggest narrowing factor | Zero in the last 30 days | A run of returned items |
| Existing positions | Share of deposits already committed | None, or one disclosed and current | Two or more open advances |
Do You Need Card Sales?
Traditionally an advance was repaid as a percentage of daily card settlements, so card volume was the requirement. Today most advances in the network are repaid by a fixed daily or weekly ACH debit from the business account, so any business with steady deposits can qualify — not just restaurants and retailers. Strong card volume still helps, because it is the most verifiable kind of revenue there is.
How the Amount Is Decided
Advances are commonly sized around a multiple of one month of business deposits, with the multiple set by everything in the table above. The figure is set on your file rather than published as a rule, and a request far above what your deposits support is the most common reason an approval comes back smaller than the amount asked for. Our guide to how much business funding you can qualify for explains what moves the multiple.
What Disqualifies a File
- Revenue through a personal account. It cannot be read as business deposits. Open a business account and route everything through it.
- A recent run of NSF days. Thirty clean days usually reopens the menu.
- Stacked positions. Two or more open advances points to consolidation, not a third.
- An undisclosed position. Found in the statements at funding, it collapses the approval.
- Restricted industries. A short list varies by funder; a specialist will tell you immediately if yours is on it.
What You Are Entitled to Before You Sign
An advance is the product most often sold without a clear statement of cost, which is why the FTC has taken enforcement action against operators who misrepresented terms and why a growing number of states now require written disclosure of total cost. Whatever state you are in, get three figures in writing: the total amount you will repay, the payment amount and frequency, and the factor rate. If any of the three is missing, do not sign. Our guide to disclosure laws by state lists which states require what.
Ready? Check your options — three months of statements, about five minutes, and a soft inquiry only.
October 2026 Update: Rates, Approval Odds and Costs
Three things changed since this guide was last reviewed, and all three affect the numbers above.
- Prime is 7.00%, up from 6.75% on September 17, 2026, after the Federal Reserve’s first hike since 2023. Variable products (bank lines, SBA 7(a) loans, HELOCs) repriced a quarter point; fixed-rate and factor-rate products you already hold did not. The next Fed decision is October 28. See prime rate is 7%: what it means for business loan rates.
- New approval data: the Federal Reserve’s 2026 Small Business Credit Survey found 81% of applicants approved for at least part of their request and 42% in full; equipment loans (71%), merchant cash advances (48%) and lines of credit (45%) were approved in full most often, SBA (37%) and term loans (35%) least. See business loan approval rates in 2026 and easiest business loans to get.
- Cost pressure: 77% of small employers report rising costs and 47% cite tariffs; NFIB puts the average short-term loan rate at 8.2% (September 2026). The cheapest-tool-first playbook is in tariffs and small business working capital.
Common Questions
Can I get a merchant cash advance with bad credit?
Yes. Advances are underwritten on business bank deposits, and the practical floor through RAN Funding is a 500 score. Credit is read, mainly for open positions and recent judgments, but it is rarely the deciding factor.
Do I need to accept credit cards?
No longer. Most advances are repaid by a fixed daily or weekly ACH debit from your business account, so any business with consistent deposits can qualify. Strong card volume still strengthens a file.
How many months of bank statements do I need?
The last three months of business bank statements. Some states require four. Personal account statements do not count as business deposits.
What is the minimum amount?
Every product RAN Funding places starts at $10,000. The maximum is set by your deposits and the rest of your file.
Can I get an advance if I already have one?
Sometimes, if the existing position is disclosed, current, and the combined repayment stays a manageable share of deposits. Two or more open advances usually points to consolidation rather than a new position.
How fast can I be funded?
The same business day is common once statements are in and the offer is signed; 24 to 48 hours is typical for funds to land.
Sources
- 2026 Report on Employer Firms: Findings from the 2025 Small Business Credit Survey — Federal Reserve Banks, 3 March 2026
- State Commercial Financing Disclosure Laws — Venable LLP, March 2026
- Court Enters $20.3 Million Judgment in FTC Case Against Merchant Cash Advance Operator Jonathan Braun — Federal Trade Commission, 14 February 2024
See What You Qualify For
One application, about five minutes, soft pull only. A funding specialist comes back with the offers you qualify for — and explains every term before you sign.
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