Do You Need a Business Plan to Get a Merchant Cash Advance?

If you’re thinking about using a merchant cash advance (MCA) to fund your business, you might wonder if you need a formal business plan. The short answer: not usually. But understanding what MCA lenders actually care about can help you secure funding faster—and potentially on better terms.

What MCA Lenders Really Care About

• Sales history: Unlike banks that scrutinize multi-year projections, MCA providers focus on your daily credit and debit card sales.
• Cash flow: Most lenders want to see 3–6 months of business bank and processing statements to confirm consistent revenue.
• Speed over strategy: MCAs are built for speed—funding can happen within 24–48 hours. Business plans slow things down.

When a Business Plan Might Be Helpful

• Large advance amounts: For MCAs over $100,000, lenders may ask for a brief summary of your business and plans.
• Seasonal revenue: If your income fluctuates throughout the year, explaining your seasonal trends can help lenders understand your business.
• New lender relationships: First-time borrowers may benefit from providing simple business context, especially in niche industries.

What to Prepare Instead

• Financial documentation: Bank statements, credit card processing history, and tax returns matter more than projections.
• Business summary: A one-pager with your business type, how long you’ve been operating, average monthly revenue, and how you’ll use the funds.
• Credit history: While not the top factor, your personal and business credit scores can still affect approval and terms.

Basic Eligibility Requirements

• Minimum revenue: Most MCA providers want to see at least $10K–$15K in monthly credit card sales.
• Time in business: At least 6–12 months of operating history is typical.
• No recent bankruptcies: Bankruptcy history can hurt or disqualify your application.

Smart Strategy: Keep It Simple

The appeal of MCAs is speed and simplicity. Don’t waste time drafting a detailed business plan—focus instead on organizing financials and being ready to explain your business model clearly. Strong sales data speaks louder than polished presentations.

Before You Apply

• Compare options: Rates and terms vary widely between MCA providers.
• Consider alternatives: If you have time, SBA loans or business credit lines might offer better terms.
• Plan for repayment: MCA repayments come daily from your credit card revenue. Make sure your cash flow can support it.

The Bottom Line

You don’t need a business plan to apply for a merchant cash advance—but you do need strong, consistent sales and clean financial records. If you’re still in the planning phase or don’t have steady revenue, an MCA may not be the right option just yet.