Merchant cash advances (MCAs) have historically been the default emergency capital source for H-1B business owners when banks decline and the SBA is unavailable. They are fast (24 to 48 hours), do not require citizenship, and are available to virtually any business with credit card revenue. But they come with costs that are genuinely dangerous for businesses operating on thin margins.
How Merchant Cash Advances Work
An MCA provider advances a lump sum against your future credit card or bank deposit revenue. Repayment is structured as a daily percentage of your credit card sales or bank deposits — typically 10 to 20% of daily revenue. The "factor rate" (instead of an interest rate) converts to an APR equivalent of 40 to 80% for most MCA products. A $100,000 MCA with a factor rate of 1.35 requires repayment of $135,000 — a $35,000 cost on a 1-year payback, equivalent to 35% APR in the best case.
MCA vs. Bankable: H-1B Specific Comparison
| Factor | Merchant Cash Advance | Bankable |
|---|---|---|
| H-1B Eligible? | Yes | Yes |
| Effective APR | 40–80% | Significantly lower (varies) |
| Max Amount | $500K | $5M |
| Decision Speed | 24–48 hours | 48 hours |
| Repayment Flexibility | Fixed % of daily revenue | Revenue-based, structured |
| Stacking Risk | High (multiple MCAs common) | Low (structured tranche) |
When MCAs Are Appropriate
True business emergencies where 24-hour access is critical and the business can comfortably service the repayment from revenue without jeopardizing operations. A restaurant with a failed walk-in cooler needing $15,000 immediately — and generating $80,000/month in revenue — is a reasonable MCA candidate if Bankable's 48-hour timeline is insufficient.
For everything else, start with the Bankability Assessment. Bankable's 48-hour decision is nearly as fast as an MCA, with significantly better terms and amounts up to $5M that MCAs cannot match.
Frequently Asked Questions
Only for true emergencies where 24-hour capital access is critical and the business can service the cost. Bankable's 48-hour timeline and better terms make MCAs unnecessary for most situations.
Factor rates of 1.20 to 1.50 translate to effective APRs of 40 to 80% or higher, depending on repayment speed. MCAs do not disclose APRs by law in most states.
Bankable offers larger amounts (up to $5M vs. $500K for most MCAs), better terms, a structured tranche system, and 48-hour decisions. MCA products typically have higher effective costs.
MCA stacking occurs when a business takes multiple simultaneous MCAs from different providers. Combined repayment as a percentage of daily revenue can reach 40 to 60% of daily deposits, making it impossible to cover operating expenses.
Yes. Refinancing high-cost MCAs with Bankable's lower-cost revenue-based funding is a common use case. Contact our team for analysis of your specific MCA situation.
No. Bankable has zero residency requirements. H-1B, L-1, O-1, and other work visa holders all qualify for funding assessment based on business revenue alone.
Effective March 1, 2026, the SBA requires 100% US citizen or national ownership for all 7(a) and 504 programs. H-1B holders are completely excluded regardless of revenue or credit history.
48 hours from completed application. The Bankability Assessment at /bankability-score/ takes 30 seconds and gives a preliminary range immediately.