Key Takeaways
- Merchant cash advances (MCAs) are expensive but fast — often the first funding H-2B entrepreneurs access
- Bankable's revenue-based funding is a better-priced alternative to high-cost MCAs
- Both require no green card — but Bankable's terms are significantly more favorable
- High-cost MCAs can trap growing businesses in expensive debt cycles
- Bankable is designed to be the MCA alternative for H-2B entrepreneur businesses
Merchant Cash Advances: The First Option, Not the Best Option
Merchant cash advances (MCAs) from online lenders are often the first funding that H-2B and former H-2B business owners access — because they are fast, require no green card, and have high approval rates. An MCA lender doesn't care about immigration status: they care about daily credit card sales volume, and they fund quickly based on that.
The problem with MCAs is cost. Effective annual rates on merchant cash advances often exceed 50–150%. A $50,000 advance might require $75,000–$85,000 in total repayment over 6–9 months. For a business in a cash crunch, this cost might be worth it. For a growing business that has options, it is expensive capital that should be replaced with better-priced alternatives as soon as possible.
Bankable's revenue-based funding is the direct alternative to high-cost MCAs. Same structure (advance repaid from daily revenue). Better pricing. Better terms. And because Bankable serves H-2B entrepreneurs specifically, we understand your business and your situation.
MCA vs. Bankable Revenue-Based Funding
| Factor | Typical High-Cost MCA | Bankable Revenue-Based |
|---|---|---|
| Effective Annual Rate | 50–150%+ | Lower — depends on term and amount |
| Transparency | Often opaque — factor rates, not APR | Clear terms presented upfront |
| Green Card Required | No | No |
| Decision Speed | Same day to 24 hours | 48 hours |
| Stacking (multiple advances) | Common and encouraged | Not required or encouraged |
| Maximum Amount | Typically $250K | Up to $5M |
| Purpose | Primarily short-term cash flow | Growth, equipment, working capital |
If You Already Have an MCA
If you are currently servicing a high-cost MCA and want to refinance into better terms, Bankable can evaluate your situation. The key factors are: how much of your existing advance is remaining, what your current holdback rate is, and what your business revenue looks like with the existing advance obligations. In many cases, Bankable can provide a facility that pays off an existing MCA at better terms.
Replace Your MCA
Already have a high-cost advance? Check if Bankable can refinance it at better terms.
Apply Now →Revenue-Based Funding Explained
Understand exactly how Bankable's revenue-based funding works and how it compares.
Learn More →Best Funding Options
All funding options for H-2B entrepreneurs — from MCAs to banks to Bankable.
Compare Options →Frequently Asked Questions
A merchant cash advance (MCA) is a lump-sum advance repaid as a percentage of daily credit card or bank deposits. It is technically not a loan — it is a purchase of future receivables. MCAs are fast and require no green card, but they are typically much more expensive than bank loans or Bankable's revenue-based products.
MCAs can be appropriate for short-term cash emergencies when no better option is available. For ongoing capital needs, Bankable's revenue-based funding is a better-priced alternative with higher maximum amounts and better terms.
Bankable's revenue-based products are priced below high-cost MCAs. While we cannot provide a specific rate comparison without evaluating your situation, Bankable is specifically designed to serve as a better-priced alternative to the high-cost MCA market for H-2B entrepreneurs.
Yes. Bankable can evaluate refinancing an existing MCA. The viability depends on how much of your existing advance remains, your current holdback rate, and your business revenue. Contact us to discuss your specific situation.
MCA stacking is taking multiple cash advances simultaneously from different lenders. Stacked MCAs can consume 40–60% of daily revenue in combined holdbacks, which severely constrains business cash flow. Bankable does not encourage or facilitate MCA stacking.
Bankable's revenue-based funding is structurally similar to an MCA — it is a lump-sum advance repaid as a percentage of daily bank deposits. The differences are in pricing, transparency, maximum amounts ($5M vs. typical MCA maximum of $250K), and our specific focus on serving H-2B entrepreneur businesses.
Ask for the factor rate (e.g., 1.30 means you repay $1.30 for every $1 advanced) and calculate the effective APR. Effective APR above 50% is expensive. Above 100% is very expensive. Bankable's factor rates are disclosed clearly upfront.
Most MCA lenders require only 3 months of bank statements and a government ID. No immigration documents required. Bankable requires 6 months of bank statements, which allows us to better evaluate your business and offer better terms.