Merchant Cash Advances
Financing based on business performance and eligible future receivables.
Understanding merchant cash advances
A merchant cash advance (MCA) is not a traditional loan. A funding provider purchases a portion of a business's eligible future receivables, such as card or bank deposits, in exchange for an upfront sum. The business then remits an agreed percentage or fixed amount over time until the purchased amount is delivered.
Because MCAs are typically evaluated on business revenue and deposit history rather than collateral alone, they can be an option for businesses that need flexible access to capital. APX Funding helps you understand how MCAs work and connects you with funding partners who may offer them.
Common use cases
- Bridging seasonal cash-flow gaps
- Purchasing inventory ahead of busy periods
- Covering unexpected repairs or expenses
- Funding marketing or growth initiatives
- Managing payroll during slower months
- Taking advantage of supplier discounts
Potential benefits
Revenue-based review
Funding partners typically focus on business performance and deposit history.
Flexible remittance structures
Some providers offer remittances tied to a percentage of sales, which can move with your revenue.
Unrestricted use
Funds can generally be used for a wide range of legitimate business purposes.
Streamlined process
Applications are usually simpler than traditional bank financing.
Benefits depend on the specific product, provider and terms offered.
General eligibility considerations
Each funding partner sets its own criteria. Common considerations include:
- An operating business registered in Canada
- Consistent monthly revenue and business bank deposits
- Time in business, which varies by funding partner
- Recent business bank statements
- Existing financing obligations are considered case by case
Frequently asked questions
No. An MCA is generally structured as a purchase of future receivables rather than a loan. The specific structure, cost and remittance terms are set by the funding provider and outlined in their agreement, which you should review carefully before signing.
APX Funding is an independent commercial financing brokerage and is not a bank or direct lender. We work with third-party funding partners. All financing is subject to eligibility, underwriting, funding partner terms and final approval by the funding provider. Submitting an application does not guarantee approval, a specific amount, rate, term or funding timeline.
Ready to explore your funding options?
Complete our secure online application and our team will review your financing needs.
Applying does not guarantee approval. Financing is subject to eligibility and funding partner terms.