Key Takeaways
- MCAs are accessible to E-3 holders — no citizenship requirement
- MCA costs are often very high (effective APRs of 40–200%+)
- Daily ACH repayments create cash flow pressure
- Bankable's revenue-based funding is structurally similar but better-priced and more transparent
- MCAs should be a last resort, not a primary funding source
Merchant cash advances (MCAs) are one of the most common funding products E-3 holders encounter — because they have no citizenship requirement and can fund very quickly. They're also one of the most expensive and potentially problematic funding structures in the business lending market.
Bankable's revenue-based funding is structurally similar to an MCA (both advance capital repaid from revenue) but is structured more transparently, priced more fairly, and managed with E-3 holder businesses in mind. This guide explains the full picture.
The E-3 Funding Barrier
The SBA's 100% citizen/national ownership rule disqualifies every E-3 holder from government-backed loans — regardless of how long you've been in the US, how profitable your business is, or how strong your credit score is. Banks that primarily originate SBA loans have no viable product to offer you. That's not a reflection of your business quality; it's a policy gap that Bankable was built to bridge.
Revenue-based funding through Bankable requires no green card, no citizenship, and no SBA involvement. What matters: your business generates consistent revenue, has been operating for at least 6 months, and has a US business bank account. That's the core of what we evaluate. Check your Bankability Score to see your options in minutes.
Challenges in This Sector
- MCA factor rates are often 1.2x–1.6x or higher — effectively very high APR
- Daily ACH repayments (not weekly or monthly) create constant cash pressure
- MCA stacking (multiple MCAs simultaneously) creates dangerous debt spirals
- Some MCA providers use confusing term structures that obscure true cost
- Renewal pressure from MCA providers often encourages rolling advances before they're paid off
- MCA providers are not federally regulated the same way banks are
Funding Solutions for E-3 Holders
- Understand Total Cost: Advance × factor rate = total repayment. $100K × 1.4x = $140K total.
- Compare with Bankable: Bankable's factor rates (1.15–1.45x) are competitive with the better end of the MCA market.
- Avoid Stacking: Multiple simultaneous MCAs compound costs and create default risk.
- Choose Transparent Lenders: Bankable provides clear total repayment figures before you sign.
- Use for the Right Purpose: If you need an MCA, use it for working capital, not for operational losses.
MCA vs. Bankable Comparison
| Factor | Typical MCA | Bankable RBF |
|---|---|---|
| Factor Rate | 1.2–1.6x | 1.15–1.45x |
| Repayment Frequency | Daily ACH | Daily % of revenue |
| Transparency | Variable — often confusing | Clear total repayment upfront |
| E-3 Eligible | Yes | Yes |
| Maximum Amount | $500K typical | $5M |
| Regulatory Oversight | Limited | Structured private lending |
| Stacking Risk | Common issue | Disclosed and assessed upfront |
Signs of a Predatory MCA
- Pressure to sign within 24 hours
- Factor rate not clearly stated upfront
- Renewal offer before current advance is paid off
- Confession of judgment language (waiving your right to dispute)
- No physical address or hard-to-find contact information
- Broker who shops your application to 10+ lenders without disclosure
Capital Products Available
Revenue-Based Funding
Up to $5M based on your monthly revenue. No green card, no SBA. 48-hour decisions.
Apply Now →Equipment Financing
Asset-backed funding for equipment — available to non-citizen business owners.
Check Eligibility →Frequently Asked Questions
Yes. MCAs have no citizenship requirement — they evaluate business revenue, not visa status.
They're accessible but often expensive. Use them carefully and only with transparent providers.
Advance × factor rate. A $100K advance at 1.35x = $135K total repayment. Effective APR depends on how fast you repay.
Bankable's revenue-based funding is structurally similar but typically better-priced and more transparent than typical MCA products.
Daily ACH pulls from your business bank account — a fixed dollar amount or percentage of daily credit card settlements.
Technically yes, but stacking MCAs is dangerous — costs compound and cash flow can collapse.
MCA agreements often include personal guarantees and potential legal action. Understand the terms before signing.
For genuine short-term working capital needs where you have confidence in near-term revenue and can handle daily repayments.
Bankable is a direct lender — we evaluate, approve, and fund your business ourselves. We don't broker your application to other lenders.
Yes. Bankable regularly helps businesses refinance high-cost MCAs with better-structured revenue-based funding.