Key Takeaways
- MCA repays as a percentage of daily card sales — payments flex with revenue
- No fixed payment schedule — works with the natural cycle of your business
- TPS business owners qualify based on card processing volume
- No green card, no SBA eligibility, no collateral required
- Bankable offers MCA to TPS holders with 48-hour decisions
A merchant cash advance (MCA) is one of the most accessible forms of business capital for TPS entrepreneurs because it requires no collateral, no real estate, and no immigration status beyond valid work authorization. The only qualification that matters is your card processing volume — and for restaurants, retail stores, salons, and other consumer-facing businesses, that volume tells the whole story of the business's health.
How Merchant Cash Advances Work
An MCA provides a lump sum advance. In exchange, Bankable purchases a percentage of your future card sales at a slight discount. Each day, a fixed percentage (the "holdback rate") of your card processing deposits is automatically collected. Because repayment is tied to daily sales, there is no fixed due date — the advance repays as your business generates revenue.
MCA vs. Business Loan
| Factor | MCA | Traditional Loan |
|---|---|---|
| Repayment | % of daily card sales | Fixed monthly payment |
| Rate Structure | Factor rate (1.15-1.45x) | Annual interest rate |
| Collateral | Not required | Often required |
| Fixed Term | No — depends on revenue | Yes — 1-5 years typically |
| Speed | 48-hour approval | Weeks |
For TPS businesses in consumer-facing industries, see also our revenue-based funding explainer.
Frequently Asked Questions
An MCA provides a lump sum in exchange for a percentage of future card sales. Repayment is collected daily as a fixed percentage of card processing deposits.
Yes. Bankable provides MCAs to TPS business owners based on card processing volume. No green card required.
Typically $10,000-$15,000/month in card processing volume minimum. Higher volume qualifies for larger advances.
A factor rate multiplies your advance to determine total repayment. A 1.30 factor on $50,000 means total repayment of $65,000 regardless of how long repayment takes.
Typically 8-18% of daily card sales. A holdback of 12% means 12 cents of every dollar in card sales goes toward repaying your advance.
Essentially yes. The terms are used interchangeably. Both are advances repaid from a percentage of daily revenue.
Yes. Early payoff reduces total cost if there is an early payoff discount. Ask your Bankable advisor about early payoff terms before signing.
Restaurants, retail stores, salons, auto repair shops, and any business with significant daily card processing volume. Businesses with low card volumes are better served by invoice factoring or term loans.