Key Takeaways
- Both Bankable and MCAs provide fast capital (24–72 hours) without SBA or citizenship requirements
- MCAs are primarily based on credit card processing volume; Bankable evaluates all business revenue
- MCA factor rates can reach 1.30–1.50+; Bankable's range is 1.15–1.45 with clearer disclosure
- MCAs are often sold by brokers with fees adding cost; Bankable is a direct lender with transparent terms
- Businesses without significant credit card volume are better served by Bankable than traditional MCAs
Merchant Cash Advances (MCAs) and Bankable Funds revenue-based advances are structurally similar products — both provide a lump sum repaid as a percentage of future revenue — but with important differences in underwriting criteria, pricing transparency, and suitability for non-citizen business owners.
How MCAs Work
A merchant cash advance is technically the purchase of a portion of future credit card receivables. MCA providers give you a lump sum today in exchange for a portion of your daily credit card sales until the advance plus fees are repaid. Key characteristics:
- Based primarily on credit card processing volume (typically $5,000+/month in card sales)
- Repaid as a percentage of daily credit card batches (typically 10–20%)
- Factor rates typically 1.20–1.50+ (can go higher with aggressive brokers)
- No formal term — paid when the factor amount is repaid
- Often sold through brokers who add fees and may stack multiple advances
How Bankable Funds Revenue-Based Advances Work
Bankable's revenue-based advances evaluate all business revenue — not just credit card volume. This is particularly important for non-citizen businesses where a significant portion of revenue may come from cash, ACH transfers, or bank wire payments rather than card processing. Key characteristics:
- Based on total business bank statement revenue (any payment method)
- Repaid as a percentage of weekly or daily revenue
- Factor rates 1.15–1.45 with transparent, disclosed terms
- Direct lender — no broker intermediary adding fees
- Non-citizen specific underwriting (EAD accepted, immigration-aware process)
Bankable vs. MCA: Detailed Comparison
| Factor | Merchant Cash Advance | Bankable Funds |
|---|---|---|
| Non-citizen access | Often yes — but varies by MCA provider | Yes — purpose-built for non-citizens |
| Revenue basis | Credit card processing volume | All business revenue (any payment type) |
| Factor rate range | 1.20–1.50+ (can be higher) | 1.15–1.45 |
| Transparency | Variable; broker involvement adds opacity | Direct lender; full disclosure required |
| Stacking risk | High — brokers may stack multiple MCAs | Low — Bankable monitors for stacking |
| Regulatory environment | Less regulated; varies by state | Revenue-based advance; standard commercial |
| Best for | Retail/restaurant with high card volume | Any business with documented bank revenue |
The MCA Stacking Problem
One of the biggest risks in the MCA market is "stacking" — where brokers arrange multiple simultaneous MCAs from different providers, each taking a daily percentage of revenue. A business with four MCAs stacked can find 40–60% of daily revenue going to repayments, creating severe cash flow problems. Bankable Funds does not participate in stacking and evaluates applicants for existing MCA obligations before advancing.
When to Choose Bankable Over MCA
- Your business has significant non-card revenue (cash, ACH, wire)
- You want transparent, direct-lender terms without broker intermediaries
- You want a lender that specifically serves non-citizen businesses
- You want lower factor rates at the same speed
- You want to avoid MCA stacking risk
Frequently Asked Questions
Yes. MCAs have no citizenship requirements — they are based on credit card processing volume, not immigration status. However, specific MCA providers may have their own underwriting policies that indirectly screen for citizenship. Bankable Funds explicitly welcomes non-citizens.
If you have an existing MCA, Bankable may be able to refinance it — consolidating the MCA obligation into a single Bankable advance at potentially better terms. Disclose all existing debt obligations when applying to Bankable.
Converting factor rates to APR is complex because both products don't have fixed terms. A 1.25 factor rate MCA that pays off in 6 months has a different APR than one that pays off in 12 months. Revenue-based products are typically more expensive on an APR basis than traditional loans but faster and more accessible than alternatives. Compare total cost (advance × factor rate = total repayment) rather than APR for these products.
MCA reporting practices vary by provider. Some report to business credit bureaus; others don't. This inconsistency is one of the disadvantages of MCAs — they often don't build your business credit profile even when repaid successfully.
Yes. If your business has documented total revenue (bank statements) beyond just credit card processing, Bankable may offer a better-matched product than a credit-card-volume-only MCA. Apply for a Bankability Score assessment to compare.
Some states (California, New York, Virginia, Utah, Florida, Georgia) have enacted commercial financing disclosure laws that require MCA providers to disclose costs. These laws improve transparency but don't prohibit MCAs. New York State's 'true lender' regulations have affected some MCA structures.
Bankable Funds is a direct lender — not a broker. Brokers make money by placing your application with multiple MCA providers and collecting commissions from each. This creates incentives for brokers to place you with whoever pays the highest commission, not whoever has the best terms for your business. As a direct lender, Bankable's incentives are aligned with your successful repayment.