What's the true cost of a merchant cash advance?

With factor rates of 1.2-1.5, a $100K advance costs $120K-$150K to repay. The effective APR ranges from 20-50% depending on how quickly your sales volume repays the advance. MCAs are expensive — use them only when speed is critical.

How does MCA repayment work for restaurants?

A fixed percentage (10-20%) of your daily credit card sales is automatically remitted to the MCA provider. On busy days you repay more; on slow days you repay less. This protects cash flow during seasonal dips.

Can I get an MCA if I already have one?

Stacking MCAs (taking a second while the first is active) is possible but risky and expensive. Most reputable providers will offer a renewal or consolidation once you've repaid 50-60% of the first advance rather than stacking.

Are merchant cash advances regulated like loans?

MCAs are technically purchases of future receivables, not loans, so they're not subject to Truth in Lending Act disclosures in most states. However, several states (including CA, NY, and VA) now require APR-equivalent disclosures.

Published: March 31, 2026·Last updated: May 16, 2026·By Ed Freeman, Capital Advisor — PeerSense

What is the best financing for restaurant / food service at N/A — based on monthly card sales LTV?

A merchant cash advance provides restaurants $10K-$500K within 24-48 hours based on monthly credit card and debit card sales volume. Repayment is automatic — a fixed percentage (typically 10-20%) of daily card sales is remitted until the advance is repaid. Factor rates range from 1.2-1.5, meaning you repay $1.20-$1.50 for every $1 advanced. No collateral required beyond your future receivables.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder

Prime: 6.75% 10-Yr Treasury: 4.25% Est. Merchant Cash Advance Range: Factor rate 1.2 - 1.5 (effective 20-50% APR)as of Mar 19, 2026

Restaurant / Food Service

Merchant Cash Advance for Restaurants

Restaurant owners: get $10K-$500K in 24-48 hours based on your credit card sales. No collateral, no fixed payments — repay as a percentage of daily sales.

Minimum 30-35% equity required. Restaurant owners doing $10K+ monthly in credit card sales who need fast capital for equipment repairs, renovations, inventory, or cash flow bridges.

Discuss Your Restaurant / Food Service Deal Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

N/A — based on monthly card sales

Est. Rate Range

Factor rate 1.2 - 1.5 (effective 20-50% APR)

Term

3-18 months (based on sales volume)

Recourse

No personal guarantee in many cases

DSCR

N/A — repayment adjusts with daily sales

Closing Speed

24-48 hours — same-day approval

Min Loan Size

$10K

Loan Products

Merchant Cash Advance, Revenue-Based Financing

FIT ASSESSMENT

When Is This the Right Fit?

MCAs are best for urgent restaurant capital needs: a broken walk-in cooler, a lease renewal requiring improvements, seasonal inventory stocking, or bridging a cash flow gap during slow months. The higher cost (factor rates of 1.2-1.5) makes MCAs unsuitable for long-term financing — use them for short-term needs where speed matters more than rate. If you can wait 30-60 days, SBA or traditional financing will be significantly cheaper.

Want the full program overview, current rate sheet, and underwriting matrix? See the Lending Solutions guide →

ADVANTAGES

Key Benefits

Funded in 24-48 hours — fastest capital available for restaurants

No fixed monthly payments — repayment flexes with your daily sales volume

No collateral required beyond your future card receivables

Minimal paperwork — 3 months of bank statements and processing statements

Bad credit OK — approval based on revenue, not credit score

ALTERNATIVES

Strategic Alternatives

SBA 504 Restaurant Acquisition

If you can wait 60-90 days and want low-cost, long-term restaurant financing

Learn more

Equipment Financing — Medical/Dental

If you specifically need commercial kitchen equipment financed over 5-10 years

Learn more

Working Capital Line of Credit

If you have 2+ years of financials and want a cheaper revolving credit option

Learn more

Frequently Asked Questions

Most MCA providers can approve and fund within 24-48 hours. The application requires only 3-4 months of bank statements and credit card processing statements — no tax returns, no business plans, no collateral appraisals.

See Related Rates by Program

PeerSense covers the full commercial capital stack. Rates and structures across our money pages — updated weekly.

SBA 7(a) & 504

5.50–11.75%

Up to $5M acquisition / real estate / equipment, 10% down

See current rates

CMBS Conduit

5.60–7.10%

10-yr non-recourse fixed, $5M–$500M+, fully assumable

See current rates

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive — Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Mezzanine Debt

11.00–18.00%

Subordinate to senior, $1M–$50M, capital stack fill

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

Connect with PeerSense — Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your restaurant / food service deal with the right capital source — right now.

Scan Your Deal (30 sec)Tell Us About Your Deal Call (317) 452-6990

No upfront retainer · Fee at closing only · Complimentary initial consultation

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated March 2026.

Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.