Key Takeaways
- Merchant cash advances (MCAs) and revenue-based funding both provide capital without citizenship requirements
- MCAs advance capital against future credit card receipts; Bankable's model advances against total revenue
- MCAs typically charge factor rates of 1.2-1.5x (20-50% effective APR)—higher than SBA but faster to fund
- Bankable's revenue-based model has better structure than traditional MCAs with transparent repayment terms
- For non-citizens blocked from SBA, Bankable offers the best balance of cost, speed, and approval rate
When non-citizens search for SBA alternatives, two products dominate the conversation: merchant cash advances (MCAs) and revenue-based funding. While both provide capital without citizenship requirements, they have significant differences in cost, structure, and suitability for different business types.
Understanding these differences helps you choose the right capital solution for your specific situation—and avoid the most expensive option when a better alternative exists.
SBA vs. Alternatives: 2026 Comparison
| Option | Citizenship | Max | Decision | Availability |
|---|---|---|---|---|
| SBA 7(a) | 100% required | $5M | 30-90 days | Blocked for non-citizens |
| Traditional Bank | Often required | Varies | 2-8 weeks | Limited for non-citizens |
| CDFIs | No | $250K | 2-4 weeks | Open, limited capacity |
| Bankable | No requirement | $5M | 48 hours | Fully open, 92% approval |
MCA vs. Revenue-Based Funding vs. SBA: Full Comparison
| Feature | SBA 7(a) (Blocked) | Merchant Cash Advance | Bankable Revenue-Based |
|---|---|---|---|
| Citizenship Requirement | 100% US required | None | None |
| Decision Time | 30-90 days | 24-48 hours | 48 hours |
| Maximum | $5M | $500K typical | $5M |
| Cost | 7-12% APR | 40-150% effective APR | Market-rate, transparent |
| Repayment | Fixed monthly | Daily % of card receipts | Monthly % of total revenue |
| Qualification | Credit + collateral | Credit card volume | Total revenue |
| Business Age | 2 years | 6+ months | 12 months |
When Merchant Cash Advances Are Appropriate
MCAs work best when:
- Your business processes high credit card volume (retail, restaurants, salons)
- You need capital in under 24 hours and can tolerate higher cost
- You need smaller amounts ($10K-$100K) for immediate needs
- You have been declined by other lenders due to credit issues
When Bankable Revenue-Based Funding Is Better
Bankable is the superior choice when:
- You need $150K+ in capital (larger than most MCAs provide)
- Your business doesn't process primarily credit cards (B2B services, wholesale, professional services)
- You want transparent monthly repayment instead of daily card withdrawals
- You want to build toward multiple funding rounds up to $5M
- You need 48-hour decisions without the 40-150% effective APR of MCAs
Warning Signs of Predatory MCA Providers
- Factor rates above 1.5x (50% total cost)
- Confessions of judgment clauses
- Daily ACH withdrawals that disrupt cash flow
- Stacking (multiple MCAs simultaneously)
- Renewal fees and hidden origination charges
Bankable is a transparent alternative to both SBA and predatory MCAs. Check your approval odds here.
Don't let the SBA closure push you toward expensive MCAs. Bankable provides competitive, transparent capital for non-citizens. Apply in 5 minutes.
Frequently Asked Questions
A merchant cash advance (MCA) is a funding product where a company advances capital to a business in exchange for a percentage of future credit card or debit card receipts. The advance is repaid through daily automatic deductions from card processing.
Yes. MCAs have no citizenship requirement because they're not loans—they're purchases of future receivables. However, their cost is significantly higher than other alternatives.
Bankable provides comparable speed (48 hours) at significantly lower cost than MCAs, with monthly rather than daily repayment, access to up to $5M versus MCAs' $500K typical max, and a transparent structure designed for long-term partnership.
A factor rate is a multiplier applied to the advance amount. A 1.3x factor rate means a $100K advance requires $130K in total repayment. This equates to 30% total cost, which on a 6-month term equals approximately 60% APR.
Multiple simultaneous advances (MCA stacking) is generally prohibited by most funders and can damage your business. Bankable evaluates your existing obligations as part of underwriting.
Most MCA providers require 500+ FICO and 4+ months in business with minimum $10K/month in card volume. Credit requirements are typically lower than traditional lenders.
Businesses with less than 12 months of history or less than $150K in annual revenue may qualify for smaller MCAs ($10K-$75K) but not Bankable's program. For these businesses, CDFIs and microloans are alternative options.
Bankable's pricing is transparent and market-rate—significantly lower than typical MCAs. Contact Bankable for specific pricing based on your revenue and business profile.
Yes. Most MCAs repay through daily ACH withdrawals from your business bank account, typically 10-25% of daily card receipts. This daily cadence can disrupt cash flow management. Bankable's monthly repayment is less disruptive.
Yes, MCA and revenue-based funding can both be used for equipment. However, if you specifically need equipment financing, dedicated equipment loans often have better terms than MCAs or even revenue-based funding for large purchases.