Best 5 No Doc Merchant Cash Advance Loans Los Angeles for Bad Credit for Small Businesses

For small business owners in Los Angeles with less-than-perfect credit or limited financial documentation, securing financing can be an uphill battle. Traditional bank loans typically require strong personal credit scores, tax returns, and collateral, which many newer or distressed businesses don't have.

Thankfully, alternative online lenders are changing the game regarding accessing capital. No doc merchant cash advance (MCA) loans allow businesses to get funding fast based primarily on their credit card sales history rather than credit scores or tax documents.

Best 5 Los Angeles Online & Fast Approval Merchant Cash Advance Services

• GreenDayOnline: Offers same day funding with an easy online application process, catering to small businesses.
• PaydayChampion: Specializes in fast approval and no credit check financing solutions for unsecured cash advances.
• RixLoans: Provides bad credit merchant cash advances with same-day approval and no doc requirements.
• PaydayDaze: Offers a streamlined online application for quick, easy approval of merchant cash advances, even for those with bad credit.
• GadCapital: Features low-interest, unsecured cash advances with fast, same-day funding for small businesses.

This comprehensive guide will explain everything Los Angeles business owners need about merchant cash advances and review the top 5 no-doc MCA lenders serving the LA area. Whether you need funds to cover payroll, inventory, equipment, renovations, or any other business need, read on to find the right financing option for your company.

What is a No Doc Merchant Cash Advance (MCA) Loan?

A merchant cash advance provides businesses with a lump sum of capital in exchange for a percentage of future credit card sales over a defined period. It is not technically structured as a loan but as a cash purchase agreement.

However, for the business owner, the effect is very similar to a term loan. You receive a large infusion of funds upfront and repay it over weekly or monthly installments.

Unlike a traditional small business loan:

• No collateral is required - any assets do not secure the MCA agreement.
• There are no fixed interest rates or APRs - the fee is specified as a factor rate based on the total repayment amount rather than an annual percentage rate.
• Repayment comes from a percentage of daily credit card sales - the lender collects a fixed percentage of your revenues each day or week until the agreed amount is repaid. There are no fixed monthly installment amounts.
• Underwriting focuses on credit card sales volume rather than personal credit scores or financials, which?allows many businesses that would not qualify for a bank loan to access capital.

The quick access to funds with minimal documentation requirements makes MCAs a popular financing choice for restaurants, retailers, professional service firms, and other merchant businesses in LA.

Top 5 No Doc MCA Lenders for Los Angeles Businesses

Lender Overview

Let's take a deeper look at each of these top no-doc MCA lenders:

GreenDayOnline

With over $3 billion in small business funding delivered since 2008, GreenDayOnline is one of the largest and most experienced MCA providers nationwide. Their team of experts makes securing financing for your Los Angeles business as smooth and efficient as possible.

Key stats:

• Funding Amounts: $5,000 - $250,000
• Term Length: 3 - 12 months
• Time to Funding: Can provide approved funds in as little as 1-3 business days

GreenDayOnline evaluates applicants based on their credit card sales history rather than credit score. As long as your business has at least $5,000 per month in credit card revenues, you may qualify for an MCA up to your average monthly processing volume.

They focus on restaurants, retailers, professional service providers, wholesalers, and other B2B/B2C merchant businesses.

PaydayChampion

PaydayChampion stands out for its laser focus on speed and simplicity. Its application takes just a few minutes and does not require financial statements or tax documents.

Key stats:

• Funding Amounts: $5,000 - $200,000
• Term Length: 3 - 9 months
• Time to Funding: Prequalified applicants can receive funds the same day

PaydayChampion evaluates eligibility based primarily on daily credit/debit card sales, merchant processing history, and time in business. There are no early repayment penalties. Their website features a simple MCA cost calculator to estimate potential rates.

The team at PaydayChampion takes pride in developing transparent, cooperative relationships with their clients. They are members of the American Fair Credit Council, afcc.org, which supports fair lending practices.

RixLoans

RixLoans offers highly customized MCA financing packages tailored to each client's unique situation. Their underwriters work one-on-one with applicants to create flexible terms that maximize affordability.

Key stats:

• Funding Amounts: $10,000 - $150,000
• Term Length: Flexible and customizable
• Time to Funding: Can deliver funds in 2-4 business days in most cases

RixLoans serves all small businesses but specializes in the restaurant, retail, salon, auto repair, medical, and professional services industries. They focus on supporting minority-owned, veteran-owned, and women-owned businesses.

RixLoans has funded over $200 million; if you want hands-on support and flexible financing, RixLoans delivers.

PaydayDaze

Since 2011, PaydayDaze?understands the challenges of financing businesses with less-than-perfect credit in LA. Their team looks at each applicant's full profile rather than just scores and reports.

Key stats:

• Funding Amounts: $7,500 - $125,000
• Term Length: 4 - 8 months
• Time to Funding: Can deliver funds within 2-5 days for approved borrowers

PaydayDaze serves all small businesses with at least three months of operations and $7,500+ monthly credit card revenues.

PaydayDaze combines experience, flexibility, and superior customer service when you need financing fast for your LA business.

GadCapital

GadCapital brings over ten years of experience providing merchant cash advances and alternative small business financing. Their easy online application and funding in as little as 24 hours makes the process quick and convenient.

Key stats:

• Funding Amounts: $10,000 - $200,000
• Term Length: 3 - 9 months
• Time to Funding: Can provide funds in 1-4 business days

GadCapital serves all industries, including retailers, restaurants, professional service firms, manufacturing, wholesalers, and B2B businesses. There are no prepayment penalties or hidden fees.

They have a reputation for being supportive funding partners to LA business owners from application to payoff.

Benefits of MCA Loans for LA Small Businesses

Beyond just getting access to capital quickly with minimal documentation, MCA loans offer many other advantages:

• Fast Funding—Because underwriting is based primarily on credit card revenues rather than deep financial reviews, no-doc MCA lenders can often provide funding in as little as 24-48 hours for approved borrowers. This enables you to access the capital needed for time-sensitive investments or expenses rapidly.
• Flexible Qualifying -?Since MCA lenders focus on your credit card processing volumes and sales history rather than tax returns or business valuations, more business owners qualify than traditional financing options. Startups and distressed businesses are often eligible.
• No Collateral Required - Since MCA agreements are unsecured, you?don't risk losing business or personal assets. This gives you more confidence to access funds for calculated risks and growth strategies.
• Convenient Payments—Repayment?automatically comes from a percentage of credit card sales each day or week rather than fixed monthly payments. This aligns payments with cash flow, and seasonal businesses can appreciate lower payments in slower months.
• Repeatable Financing—Once you establish a relationship with an MCA lender, you streamline the process of getting future funding as your business evolves and grows over time. The application and underwriting get easier with each round.
• Use Funds for Anything—MCA lenders do not restrict how you use the capital, unlike commercial loans, which stipulate specific uses. Feel free to use funds for payroll, inventory, renovations, marketing, or any business need.

What Information Do I Need to Apply?

The beauty of no-doc MCA loans is the extremely limited paperwork and information required:

• Contact/Business Information - your details and basic business identification info.
• Processing Statements - 90 days of merchant account statements to document credit/debit card sales history.
• Bank Statements - 30-90 days of business bank statements to corroborate sales activity.

That's typically it to prequalify and begin underwriting. The full application asks some additional basic questions but is still exponentially easier than a traditional loan application.

After approval, you'll go through more detailed onboarding, providing contact references and signing the MCA agreement contract before funds disburse. However, the initial qualification process is blessedly simple.

What are the Eligibility Requirements for Approval?

While underwriting requirements vary slightly between lenders, here are the typical eligibility criteria:

• Time in Business—Most require at least 9-12 months of operations. Some lenders accept startups on a case-by-case basis.
• Credit Card Volume—A minimum monthly credit card revenue of around $7,500. Some lenders go as low as $5k.
• Industry Type—Most MCA lenders accept all types of businesses, but some specialize in retailers, restaurants, professional services, etc.
• Consumer Credit Reports—Personal credit scores are considered but don't have an outsized impact on approval decisions. Many lenders work with less-than-perfect credit.
• Collateral - No assets are required for collateral. The MCA agreement is unsecured.

You have a strong chance of qualifying if you meet the baseline criteria above, have steady credit card volumes to support repayment, and have no current bankruptcies or tax liens. The underwriting emphasis is on your sales ability rather than your credit score.

What is the Approval Process Like?

The streamlined approval process is another major advantage of no-doc MCA loans. Here are the typical steps:

1) Initial Application - You complete a simple prequalification form with basic personal, business, and processing details. This allows the lender to review your eligibility.

2) Prequalification Notice - Within a few minutes to a few hours, the lender notifies you if you've prequalified and provides general terms.

3) Final Application - If interested, you complete the full application providing additional sales data, bank statements, and details. Underwriting begins.

4) Final Approval - Within 24-72 hours, the lender finishes underwriting and notifies you of the official approval terms.

5) Onboarding & Verification - You upload any other requested info, e-sign the MCA agreement, and the assistance is verified.

6) Funding—The lump sum is deposited directly into your business bank account. For prequalified borrowers, this can happen as fast as the same day.

The entire process often takes 1-4 business days from completed application to funding for eligible applicants.

How Much Can I Borrow with an MCA Loan?

Approved MCA amounts vary primarily based on your monthly credit card volume. Here are the general guidelines:

• Daily volume under $5,000 - Maximum MCA of 50%-150% of your average monthly volume.
• Daily volume $5,000 - $15,000 - Maximum of 100%-250% of average monthly volume.
• Daily volume above $15,000 - Maximum of 150%-300% of average monthly volume.

So, if your business processes $10,000 in credit cards per month, you might qualify for an MCA between $5,000 and $25,000. Processing $30,000 monthly could garner approval from $15,000 to $90,000.

Sometimes, lenders may consider other revenue streams beyond credit cards or give slightly higher multipliers for certain well-established businesses. But your credit card volumes are the primary factor.

What are the Repayment Terms Like?

Rather than fixed installments, MCA repayments automatically withdraw from your credit card settlements each day or week at a fixed percentage rate. Terms usually last 3-12 months until the predetermined amount is repaid.

Here is an example:

• MCA Amount: $50,000
• Term: 200 days
• Daily repayment rate: 10%

Each day, 10% of your credit card sales would be withdrawn and go to the lender. At $1,000 in daily volume, your payment would be $100. At $2,000 in sales, you would pay $200 that day.

This structure helps align payments with cash flow. Busy months generate more sales, which means higher payments. Slow months mean lower payments. At the end of the 200-day term, $50,000 will have been repaid.

How Much Does an MCA Loan Cost?

The cost of an MCA is expressed as a factor rate, similar to an APR. The factor rate encompasses the total amount repaid compared to the original cash advance.

For example:

• MCA Advance Amount: $40,000
• Total Repayment Amount: $52,000
• Factor Rate = Total Repaid / Advance AmountIn this case 52,000 / 40,000 = 1.3 or 130%

The effective rate is around 1.1% per day over the repayment term. Rates typically range from 1.1% to 2.0% based on specific terms.

Unlike loans, there is no fixed interest rate. The cost adjusts based on the lump sum advanced versus the total repayment amount. Ensure to get clear terms from lenders on the expected total repayment factor rates.

Pros & Cons of MCA Loans

Pros

• Extremely fast funding, often in 24-72 hours
• Minimal required documentation and simple approval
• Qualify based on credit card revenues, not personal credit or taxes
• No collateral required, unsecured agreements
• Payments adjust alongside credit card sales volumes
• Repeatable access to future funding as your business grows

Potential Cons

• Can have a higher effective APR than conventional loans
• Daily repayments fluctuate, making cash flow management more challenging
• Less predictable repayment amounts than fixed installments
• Total repayment amounts may exceed the original advance
• It is not ideal for very young or unstable businesses

What is the Impact on My Business Credit Score?

MCA repayments are not typically reported to major commercial credit bureaus like Experian Business or Dun & Bradstreet. So, merchant cash advances will not affect your business credit scores like a conventional loan.

However, some MCA lenders report to newer alternative commercial credit bureaus focused on small business lending, such as Nav or Lending Tree. On-time MCA payments may modestly increase your alternative commercial credit profile in those cases.

Either way, MCAs will never negatively impact your business credit report since they don't report delinquencies or late payments.

Can an MCA Affect My Credit Score?

No, MCA repayments are not reported to consumer credit bureaus. The agreements do not appear on your credit report, and your FICO credit score is unaffected.

That said, during underwriting, the lender may perform a soft credit check to view your consumer report to verify your identity. Soft checks have no consequences.

MCA agreements are structured to avoid influencing your credit standing or FICO rating.

Can I Get Multiple MCAs or an MCA With an Existing Loan?

One of the benefits of MCA loans is the ability to receive multiple cash advances over time as your business grows or faces new capital needs. Many owners take out their first MCA, repay it successfully, and return to take out larger second and third MCAs later as cash flow expands.

However, being approved for concurrent multiple MCA agreements is less common, as lenders want confidence their repayment remains the priority.

If you already have an existing term loan or line of credit, requesting an MCA is also often feasible. Just be transparent with the MCA lender and demonstrate sales levels are sufficient to support both obligations.

As long as you are not overextended, experienced MCA providers can often find ways to get you affordable financing even with existing debt.

The Pros & Cons of Payday Loans vs. MCA Loans in Los Angeles

Both payday loans and merchant cash advances can provide fast financing access for struggling LA business owners when traditional loans are out of reach. But they have very different structures.

Payday Loan Pros

• Fixed regular installment payments
• Lower rates than MCAs
• Can build credit if reported

Payday Loan Cons

• Full balance due by the due date
• Limited maximum amounts
• Higher rates than conventional loans

Disclaimer: The reviewed loan websites are loan-matching services, not direct lenders, with no direct involvement in loan acceptance or influence over APR and fund deposit speed. Requesting a loan does not guarantee approval, and some lenders may perform credit checks. Loans may not be available in all States. This article provides general information, and although we strive for accuracy, we are not liable for errors or omissions. Some links may be affiliate links; we may earn commissions if clicked. Verify information independently and seek professional advice before making decisions; use of this article implies acceptance of these terms.