Need quick funding for your eCommerce business? A Merchant Cash Advance (MCA) gives you upfront cash in exchange for a percentage of future sales. It’s fast (often within 24 hours), flexible, and doesn’t require strong credit. Here’s what you need to qualify:
- Monthly Sales: Minimum $3,000 revenue required (Amazon, Shopify, Walmart, etc.).
- Business Age: No minimum time-in-business for many providers like Onramp Funds.
- Payment Platforms: Must use supported platforms (e.g., Amazon, Shopify, TikTok Shop).
- Sales History: Steady sales for the past 3-6 months, at least 10 daily transactions.
- Debt Levels: Manageable obligations and a working capital ratio of 1.2+.
Required Documents:
- Payment processing reports (Amazon, Shopify dashboards, etc.).
- Business performance data (sales trends, cash flow, existing debts).
Why choose MCA? Payments adjust with your sales, making it easier to manage cash flow during slow periods. Providers like Onramp Funds specialize in eCommerce funding, allowing you to grow your business without giving up ownership.
Quick Comparison:
| Criteria | Traditional Loans | Merchant Cash Advances (MCA) |
|---|---|---|
| Payment Structure | Fixed monthly payments | Percentage of daily sales |
| Approval Basis | Credit score | Sales history |
| Funding Speed | Weeks | 24 hours |
| Flexibility | Strict repayment schedule | Adjusts with sales |
Ready to apply? Ensure you meet the requirements, connect your store, and prepare your documentation for a smooth application process.
Merchant Cash Advance Qualification Requirements for eCommerce Sellers
Basic Qualification Requirements
Make sure your eCommerce business meets the criteria for MCA (Merchant Cash Advance) eligibility. Here's what you need to know:
Sales Volume Requirements
Your business must generate at least $3,000 in average monthly revenue.
| Platform | Minimum Monthly Sales |
|---|---|
| Amazon | $3,000+ |
| Shopify | $3,000+ |
| Walmart | $3,000+ |
| Other Supported Platforms | $3,000+ |
Business Age Requirements
While some MCA providers focus on recent sales performance rather than how long your business has been operating, others - like Onramp Funds - don’t require a minimum time-in-business at all. This makes it easier for newer eCommerce businesses to access funding.
Payment Processing Systems
Your business must use one of the supported payment platforms to qualify. These include:
- Amazon Marketplace
- Shopify
- Walmart Marketplace
- BigCommerce
- WooCommerce
- Squarespace
- TikTok Shop
- Shopline
Financial Requirements
Here’s what MCA providers typically look at when assessing financial qualifications:
Sales History Review
Your recent sales performance plays a key role in eligibility. Here’s what providers usually examine:
| Metric | Standard Expectation |
|---|---|
| Monthly Revenue Consistency | Steady over the past 3-6 months |
| Daily Transaction Volume | At least 10 transactions/day |
| Sales Growth Trend | Stable or showing improvement |
| Seasonal Fluctuations | Clearly documented patterns |
These metrics help providers gauge the reliability of your business income.
Credit Score Information
While MCAs focus more on business performance than personal credit, there are still some important factors to keep in mind:
- Business revenue takes priority over personal credit scores.
- Maintain a solid bank account history with minimal overdrafts or NSF charges.
- A clean payment processing history is crucial.
- Personal credit issues are less critical but can impact your terms if severe.
Current Debt Levels
Your existing financial obligations are another key consideration. Here’s what providers typically review:
- Outstanding Debts: Loans, advances, or credit lines currently in place.
- Cash Flow: Ensure you have enough income to manage multiple payments.
- Debt Service Coverage: Monthly revenue should comfortably cover all obligations.
- Working Capital Ratio: A ratio of at least 1.2 (current assets vs. liabilities) is ideal.
Lastly, aim to keep your debt-to-income ratio below 50% for better approval chances.
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Required Documents
Getting the right documents ready can make your MCA application process smoother. Lenders typically focus on two main areas:
Payment Processing Reports
You'll need to provide sales reports from platforms like:
- Amazon Seller Central
- Shopify's payments dashboard
- Walmart Marketplace earnings
- TikTok Shop performance
Many providers can retrieve these reports automatically, making it easier to verify your sales history.
Business Performance Data
Some MCA providers, such as Onramp Funds, may request read-only access to your store's data. This allows them to check important metrics like sales trends, cash flow, and existing debt levels - reducing the need for additional paperwork.
Finding an MCA Provider
Look for an MCA provider that understands the unique cash flow challenges of eCommerce businesses.
Key Factors to Consider
When choosing an MCA provider, keep these important points in mind:
| Criteria | Why It Matters |
|---|---|
| Funding Speed | Choose providers that can deliver funds within 24 hours for urgent needs. |
| Platform Integration | Ensure they support your eCommerce platform, like Amazon or Shopify. |
| Repayment Structure | Opt for revenue-based payments that align with your sales volume. |
| Minimum Requirements | Check if your monthly sales meet their threshold (often $3,000 or more). |
| Support Quality | Look for dedicated support teams that understand eCommerce challenges. |
| Security Standards | Confirm their data protection measures for secure store connections. |
These factors will help you find providers that specialize in eCommerce, such as Onramp Funds.
Onramp Funds: eCommerce Funding Platform
Onramp Funds offers several advantages tailored to online sellers:
- Fast Funding: Receive funds within 24 hours of approval.
- Wide Integration: Compatible with platforms like Amazon, Shopify, BigCommerce, WooCommerce, Squarespace, Walmart Marketplace, and TikTok Shop.
- Flexible Repayment: Payments adjust based on your sales, making it easier to manage cash flow.
"Onramp offered the perfect solution with revenue-based financing to secure the capital we needed to invest in inventory and pay it back at a reasonable time frame once we made sales. The process was quick, easy, and the support was great." - Jeremy, Founder and Owner of Kindfolk Yoga
Onramp Funds is ideal for sellers generating at least $3,000 in monthly sales. Their equity-free funding ensures you retain full ownership of your business while accessing the capital you need.
Next Steps
Now that your eligibility is confirmed, here’s how to complete your merchant cash advance (MCA) application.
Application Checklist
Before you start, make sure you meet these requirements:
| Requirement | Details |
|---|---|
| Business Structure | Active LLC, Single-Member LLC, C-Corp, or S-Corp registered in the U.S. |
| Monthly Sales | At least $3,000 in average monthly revenue |
| Platform | Active seller account on platforms like Amazon, Shopify, Walmart, etc. |
| Bank Account | Business bank account with transaction history |
Getting Started
Here’s how to streamline your MCA application process:
- Prepare Your Documentation: Collect updated business records and store metrics. This will help speed up the approval process.
- Connect Your Store: Grant read-only access to your eCommerce platform. This lets the MCA provider analyze your sales history and create a funding offer tailored to your business performance.
- Link Your Bank Account: Connect your business bank account to verify cash flow and finalize your qualifications.
These steps ensure your application is complete and help secure the funding you need.
MCA providers focus on three main factors when evaluating applications:
- Your sales history
- Current cash flow
- Any existing debt obligations
