Key Takeaways
- A merchant cash advance (MCA) is revenue-based funding — the same structure Bankable uses
- MCAs have no immigration requirement — TN holders can access them directly
- Bankable's revenue-based capital is a premium MCA with better terms and up to $5M
- Avoid low-quality MCA providers with hidden fees and daily ACH debits you can't control
- 48-hour Bankable decision is comparable in speed to most MCA providers
A merchant cash advance (MCA) is the colloquial name for the same revenue-based funding structure that Bankable uses. Understanding what an MCA is — and how Bankable's version differs from lower-quality providers — is essential for TN visa holders making informed capital decisions in 2026.
What Is a Merchant Cash Advance?
A merchant cash advance is a lump-sum advance of capital in exchange for a percentage of your future daily business revenue. The lender advances you $X, and you repay $X times a factor rate (e.g., 1.25) through a daily percentage of your bank deposits or credit card sales. There are no fixed monthly payments — you pay more in strong months and less in slow months.
The MCA structure was originally designed for retail businesses with high credit card sales volume. It has since expanded to any business with verifiable bank deposit revenue. For TN holders, the key feature: MCA providers evaluate your revenue, not your immigration status. No visa check occurs in the MCA underwriting process.
How Bankable's Revenue-Based Capital Differs from Low-Quality MCAs
The MCA industry has a spectrum of providers. At the lower end: aggressive brokers, daily ACH debits with confusing fee structures, stacking (multiple advances from different providers simultaneously), and predatory collection practices. At the higher end: transparent lenders like Bankable with clear pricing, no hidden fees, professional underwriting, and long-term client relationships.
Specific Bankable differentiators: Transparent pricing: Bankable discloses the total cost of capital upfront. No hidden fees. Revenue-based vs. credit card-only: Bankable draws from total business deposits, not just credit card terminal batches — allowing TN holders in any industry to qualify. Single-lender discipline: Bankable does not participate in MCA stacking. Professional underwriting: Bankable underwrites to ensure your advance is serviceable without creating hardship. Scale: Bankable funds up to $5M — far above the typical MCA provider's $500K maximum.
Check your Bankability Score to qualify for Bankable's premium revenue-based capital.
MCA Costs: How to Evaluate Factor Rates
A factor rate of 1.20 on a $100K advance means you repay $120K — a $20K cost. An annualized effective rate depends on how fast you repay. If you repay in 6 months, your effective rate is approximately 40% APR. If you repay in 18 months, it's approximately 13% APR. The faster you repay (driven by high revenue), the lower your effective annualized cost. For TN holders with growing businesses, Bankable's revenue-based advances often have effective APRs competitive with conventional alternatives.
When to Use Bankable vs. Other MCA Providers
Use Bankable when: you need $50K-$5M, you want transparent pricing from a reputable provider, and you want a long-term capital relationship that grows with your business. Consider other MCA providers only if: you need a smaller amount ($10K-$50K) quickly and Bankable's minimum facility size is too large, or if Bankable's application is in progress and you need a bridge. Never stack multiple MCAs simultaneously — this creates a debt spiral that is very difficult to escape.
Learn more about how Bankable's revenue-based capital is structured and priced.