Key Takeaways
- Merchant cash advances (MCAs) are the most common form of private business funding available to U visa holders
- MCAs are approved based on business revenue, not immigration status — no green card required
- Bankable provides MCAs from $10K to $750K with decisions in 48 hours
- Repayment is a percentage of daily revenue — payments flex with your business performance
- MCAs are more expensive than bank loans but are actually available to U visa holders
A merchant cash advance (MCA) is technically not a loan — it is a purchase of a portion of your future business revenue at a discount. You receive cash today; the MCA company (Bankable) collects a percentage of your daily revenue until the total agreed repayment amount is reached. Because it is structured as a purchase rather than a loan, MCA providers are not subject to the same lending regulations as banks — and are not bound by the SBA's citizenship and residency requirements.
For U visa business owners, MCAs are often the most practical and accessible form of business capital available. Bankable's MCA structure is designed specifically for immigrant business owners, with a streamlined process that evaluates business revenue rather than immigration status.
How Bankable's MCA Works
- Apply: Submit 3 months of bank statements, your EAD, and EIN at bankablefunds.com/bankability-score
- Receive offer: Within 24-48 hours, you receive an offer specifying the advance amount, factor rate, and daily retrieval rate
- Review and sign: Review the offer (ask about anything you do not understand) and sign the merchant agreement
- Receive funds: ACH deposit to your business account within 1-2 business days of signing
- Repay from revenue: Bankable automatically deducts the agreed retrieval rate from your daily ACH and credit card deposits
- Full repayment: When total repayment equals the agreed payback amount, the advance is complete
MCA Terminology Explained
| Term | Plain English |
|---|---|
| Advance Amount | The cash you receive |
| Payback Amount | Total cash you repay (advance × factor rate) |
| Factor Rate | Multiplier determining total repayment (e.g., 1.30 = repay $1.30 per $1.00 received) |
| Retrieval Rate / Holdback | The daily % of revenue applied to repayment (e.g., 12%) |
| Estimated Term | Approximate days to full repayment — NOT a fixed deadline |
See our full explanation of revenue-based funding for a deeper dive into MCA mechanics.
Frequently Asked Questions
Technically no — it is a purchase of future revenue. This distinction matters legally, but for practical purposes it functions like a short-term loan with variable repayment.
Most MCA companies do not have explicit permanent residency requirements because their model is based on purchasing future revenue, not traditional lending. However, many general MCA companies have not developed expertise in U visa holder businesses. Bankable specializes in this market.
Payday loans are consumer products aimed at individuals. MCAs are business products based on business revenue. The legal framework, purpose, and repayment mechanism are entirely different. MCAs are a legitimate business financing tool; payday loans are not.
Factor rates range from 1.15 to 1.45 depending on advance size, revenue history, and business stability. Larger advances and longer-established businesses tend to receive lower factor rates.
Cash-only businesses can qualify if they deposit cash into a business bank account. We underwrite based on bank deposits, not POS data. However, accepting card payments increases your documentable revenue.
Bankable integrates with your business bank account to monitor daily ACH deposits. The retrieval rate is applied automatically each business day.
Your daily payment drops proportionally. On a day with $0 in revenue, your payment is $0. The total payback amount does not change, but it takes longer to reach.
Technically yes, but multiple simultaneous MCAs create "stacking" — multiple retrieval rates competing for the same daily revenue. Bankable evaluates existing advance obligations in your bank statements. If stacking is excessive, it can reduce your qualifying amount or result in decline.