Revenue-Based Capital
Merchant Cash Advance Funding for Growing Businesses
A merchant cash advance provides a lump sum of working capital in exchange for a fixed percentage of future card and bank deposits. Valhalla Business Funding is a direct funder, so approvals and disbursements happen in-house without third-party underwriting delays. Most qualified businesses receive funds within 24 hours of signing.
- $10,000 to $5,000,000 advanced
- Repayment tied to daily revenue
- Funding in 24 hours
- 500+ FICO considered
Risk-free, no-commitment application. No hard credit pull to check options.
How It Works
How a Merchant Cash Advance Works
A merchant cash advance is not a loan; it is a purchase of a portion of your future receivables. Valhalla advances a lump sum based on your average monthly deposits, and you repay through a fixed daily or weekly debit calculated as a percentage of revenue, or through a fixed ACH amount set from a trailing average. Because payments flex with cash flow on revenue-share structures, slower weeks reduce the debit automatically, which is why many seasonal and card-heavy businesses prefer this structure over a fixed-payment term loan when volume fluctuates.
Underwriting relies primarily on four months of business bank statements rather than personal collateral or a long financial history. Valhalla reviews average daily balance, deposit frequency, negative-day count, and existing debt positions to size an offer, typically 1x to 2x average monthly deposits. Because the advance is unsecured and funded from Valhalla's own capital, there is no waiting on a bank's credit committee. Businesses that need capital before a specific bill, payroll run, or inventory order arrives can move from application to funding the same day the paperwork clears.
- Repayment via fixed ACH or revenue-share holdback
- No collateral or real estate required
- Sized from trailing bank deposit history
- Early payoff discounts available on qualifying offers
Factor Rate vs. Interest Rate
Pricing on an advance is expressed as a factor rate, not an APR. A $50,000 advance at a 1.30 factor rate means $65,000 is owed in total, regardless of how quickly it is repaid, unless early payoff discounts are built into the offer. Comparing factor rates directly to a bank loan's interest rate understates the true cost, so businesses should compute the total dollar cost and the effective daily payment before signing.
Stacking and Debt Load
Taking a second or third advance on top of an existing one, known as stacking, compounds daily debits and is the leading cause of cash-flow strain in this product category. Before adding an advance, Valhalla reviews existing positions and, where appropriate, structures a consolidation instead of a stack so total daily outflow stays sustainable relative to revenue.
Who Should Use an MCA
An MCA fits businesses with strong, consistent deposit volume but limited time in business, credit blemishes, or an urgent funding window that rules out a bank timeline. Restaurants covering a slow season, retailers restocking before a peak, and contractors bridging the gap between a completed job and client payment all use advances for the same reason: speed and flexibility outweigh the higher cost of capital for a short-term need.
It is not the right tool for financing a long-term asset purchase or for a business already carrying multiple daily debits it cannot comfortably service. In those cases a term loan, equipment financing, or a consolidation product produces a lower total cost and a more predictable payment. Valhalla's underwriting team routinely recommends an alternative structure when the math favors it, because a sustainable repayment schedule protects both the business and the funding relationship going forward.
Requirements and Application
To qualify, a business generally needs at least six months of operating history, $15,000 or more in average monthly deposits, a 500 or higher personal credit score, and four months of business bank statements. Startups and businesses below these thresholds may still qualify for a smaller advance depending on deposit consistency and industry. Valhalla does not charge upfront fees to review an application or issue an offer.
The application itself takes minutes: submit basic business information and bank statements, and an underwriter reviews the file the same day. Approved businesses receive an offer outlining the advance amount, factor rate, payment frequency, and estimated payback term before signing anything, so there are no surprises once funds arrive. Because Valhalla funds directly, the business deals with one point of contact from application through payoff rather than being shopped to outside capital sources.
Minimum qualifications
- 6+ months in business
- $15,000+ monthly deposits
- 500+ FICO floor
- Active business bank account
The path to the hall
Funded in one working day.
Apply
One-page application. Entity details, monthly revenue, and what the capital is for.
Submit four statements
Your four most recent business bank statements. Underwriters return offers in 2–4 hours during business hours.
Choose your structure
Multiple offers side by side: factor or rate, term, daily vs weekly debit, holdback options.
Sign and fund
Sign before the 1 PM ET cutoff and funds wire the same day. After cutoff, next business morning.
FAQ
Merchant Cash Advance — questions worth answering.
How fast can I get a merchant cash advance?
Most approved businesses receive funds within 24 hours of submitting complete bank statements and signing the offer. Structured terms are typically presented within 48 hours of application, and funding follows quickly once documents are verified. Timing depends on how fast statements and signed paperwork are returned, since Valhalla funds directly and does not wait on outside approval.
Is a merchant cash advance a loan?
No. It is a purchase of a fixed percentage or dollar amount of future receivables in exchange for upfront capital, which is why pricing is expressed as a factor rate rather than an interest rate. This structure allows funding decisions to focus on cash flow and deposit history rather than collateral, credit history length, or a lengthy loan application process.
What credit score do I need?
Valhalla generally looks for a personal credit score of 500 or higher, though approval weighs bank deposit consistency and time in business as heavily as credit score. A lower score does not automatically disqualify an application; it may affect the advance amount or factor rate offered rather than the ability to qualify at all.
How is the advance repaid?
Repayment is collected as either a fixed daily or weekly ACH debit from the business bank account or as a percentage holdback of daily card sales. The structure is set at funding based on the business's deposit pattern, and the total amount owed does not change once the advance is funded, regardless of how quickly it is repaid.
Can I get a second advance while I still owe on one?
Sometimes, but Valhalla evaluates whether a second position is sustainable relative to current revenue before approving it, and often recommends a consolidation instead of a stack. Adding daily debits on top of an existing advance without reviewing total payment load is the most common cause of cash-flow trouble in this product, so responsible sizing matters.
Are there upfront fees to apply?
No. Valhalla does not charge application, underwriting, or commitment fees to review a file or present an offer. Any costs are built into the factor rate disclosed on the offer itself, and the business sees the full total payback amount before signing, with no hidden charges added after funding.
Related
Related funding options and reading
Take your seat
Earn your seat at the table.
Submit your file. Receive structured terms within 48 hours. Risk-free, no-commitment application.