Best Small Merchant Cash Advance Companies San Diego With Poor Credit and Easy Approval

As a small business owner in San Diego, finding fast funding when you have poor credit or inconsistent sales can feel impossible. Traditional bank loans are out of the question and predatory payday loans or selling equity in your business have too many risks.

Fortunately, merchant cash advance (MCA) companies provide an alternative financing solution for businesses turned down by banks. MCA providers offer quick access to lump-sum business financing in exchange for a percentage of future credit card sales.

Best 5 San Diego Online Merchant Cash Advances for Small Businesses

• GreendayOnline: Offering fast approval and no credit check financing options for entrepreneurs.
• PaydayChampion: Specializes in bad credit merchant cash advances with easy approval and same day funding.
• RixLoans: Provides small businesses with unsecured funding solutions and same-day approval.
• PaydayDaze: Offers online merchant cash advance applications with fast approval and no doc requirements.
• GadCapital: Features low-interest merchant cash advances with easy approval for small businesses.

While MCAs charge higher interest rates than bank loans, they are far more accessible for San Diego small businesses with poor credit or limited operating history. However, not all MCA companies are created equal when it comes to approval odds, funding amounts, transparency, and customer experience.

This comprehensive guide reviews the top five merchant cash advance companies serving small businesses in San Diego based on the following criteria:

• Accessible credit requirements and high approval odds
• Generous funding amounts based on monthly card sales
• Transparent terms, rates, and fees
• Fast application and funding turnaround
• Positive customer reviews and support

Whether you need emergency funding to cover expenses or affordable capital to invest in growth, finding the right MCA provider for your business is key. Read on for an in-depth look at the best merchant cash advance companies for small businesses in San Diego seeking accessible financing despite poor credit.

What is a Merchant Cash Advance?

Before reviewing top providers, let’s quickly recap what exactly a merchant cash advance is and how it works.

A merchant cash advance (MCA) offers a lump sum of financing in exchange for a fixed percentage of future credit card and debit card sales over a defined period of time. It is not a business loan but rather an advance on expected Visa, Mastercard, Discover, American Express, and debit card transactions.

Here’s a quick rundown of how merchant cash advances work:

• The MCA provider gives you an upfront sum of capital, often within days of applying.
• You pay back the advance through automatic deductions from daily card sales over an agreed period, usually 3-18 months.
• The lender takes a fixed percentage of daily credit/debit card receipts, typically 5-20%.
• When the advance is repaid in full from the percentage of sales, the payments stop.
• There are no fixed monthly repayment amounts. Daily payments fluctuate based on sales volume.
• There are no personal credit checks or business collateral required.
• Approval decisions are based primarily on average monthly card revenues.
• MCA rates are not interest rates but rather fixed fees, so they are exempt from state usury caps.

In summary, MCAs allow businesses to access capital quickly based primarily on card revenues rather than credit scores or assets. Payback amounts adjust with seasonal sales fluctuations.

Now that we’ve clarified what an MCA is, let’s review the top merchant cash advance companies serving small businesses in San Diego.

Top 5 Merchant Cash Advance Companies for San Diego Small Businesses

1. GreendayOnline

GreendayOnline is one of the largest merchant cash advance providers in the U.S., funding over $1 billion annually to small businesses. The company has built a reputation for accepting applicants with poor personal and business credit.

Accessible Requirements

For small businesses in San Diego, GreendayOnline offers high approval odds for merchants with:

• Personal credit scores as low as 500
• No late B2B payments in the last 6 months

They understand that many great businesses have poor credit. GreendayOnline focuses approval decisions primarily on average monthly card revenues rather than your personal credit reports.

Funding Amounts

GreendayOnline provides lump sum advances ranging from 50% to 250% of your average monthly credit card sales. For newer businesses, advances tend to be on the lower end of that range, while more established businesses qualify for maximum financing.

Rates & Terms

APRs with GreendayOnline can vary considerably depending on individual circumstances and state regulations, but generally fall within 18% to 40%. All fees are disclosed upfront.

Speed & Customer Service

Customers report that GreendayOnline's application process is simple and funding is fast. You can complete the application online in minutes. Funds are deposited in your business bank account within 3-4 business days on average after approval.

While not the cheapest financing option, reviewers say GreendayOnline has transparent policies, clearly explaining all repayment terms. Their customer service team is responsive in case any questions arise.

2. PaydayChampion

PaydayChampion is another major provider of merchant cash advances, funding over $200 million annually to small businesses across the U.S. Like GreendayOnline, PaydayChampion specializes in quick approvals for applicants with poor credit.

Accessible Requirements

PaydayChampion accepts applications from San Diego businesses with:

• Personal credit scores as low as 525
• No late B2B payments in the past 3 months

They offer a high approval rate for merchants; other lenders would automatically decline.

Funding Amounts

You can qualify for a lump sum advance from PaydayChampion equal to 50% to 150% of your average monthly credit card receipts. Capital is based primarily on card revenues rather than your credit profile.

Rates & Terms

PaydayChampion discloses that their rates typically range from 25% to 40%. However, APRs can exceed 50% depending on state regulations and individual applicant profiles. All fees are disclosed upfront before accepting the financing.

Speed & Customer Service

Reviewers praise PaydayChampion for fast application turnaround and funding. You can complete an application online in minutes and often receive approval and capital within 24-48 business hours.

While not as transparent about repayment terms compared to competitors, PaydayChampion earns high marks for responsive customer service able to answer any questions. The repayment setup is flexible.

3. RixLoans

RixLoans takes a different approach than direct MCA providers like GreendayOnline and PaydayChampion. Instead of directly issuing cash advances, RixLoans operates an online lending marketplace.

RixLoans allows you to compare offers from multiple accredited MCA companies through a single application, helping San Diego small businesses find the best rates.

Accessible Requirements

By completing one form on RixLoans’ website, you can receive personalized advance offers from multiple lenders willing to work with poor personal and business credit. Each lender sets their own requirements.

Funding Amounts

The individual MCA lenders on RixLoans’ marketplace generally provide lump sum advances ranging from 50% to 250% of average monthly credit card sales. Offers are customized based on revenues.

Rates & Terms

Interest rates and fees vary by lender. Comparison shopping allows you to select the most affordable MCA offer for your business. Approval rates near 90%.

Speed & Customer Service

The main drawback of marketplace platforms like RixLoans is funding tends to take a bit longer than working directly with a single MCA provider, averaging 3-7 days after approval. However, the ability to compare multiple offers makes it worthwhile.

4. PaydayDaze

PaydayDaze is a smaller MCA company focused on serving small businesses in San Diego, Los Angeles, and surrounding areas in need of quick financing for growth or expenses. They have built a reputation for easy approvals despite poor credit.

Accessible Requirements

PaydayDaze approves San Diego small business applications with:

• Personal credit scores starting at 500
• No late B2B payments within the last 6 months

The focus is on your future revenue potential rather than past credit history.

Funding Amounts

You can qualify for a lump sum advance from PaydayDaze ranging from 50% to 250% of your average monthly credit card sales volume. Newer businesses receive advances on the lower end of that spectrum.

Rates & Terms

PaydayDaze discloses that their effective APRs generally range from 25% to 40% based on individual applicant profiles and maximums allowed in California. All fees are clearly outlined before finalizing financing.

Speed & Customer Service

While not the fastest at funding after approval, typically 3-5 business days, PaydayDaze earns praise for transparent terms and flexibility. Their excellent customer service and educational resources have built trust in the San Diego small business community.

5. GadCapital

GadCapital is a newer MCA provider focused primarily on merchants in California, including San Diego. They have quickly built a reputation for easy approvals despite fair or poor credit.

Accessible Requirements

GadCapital approves applications from San Diego small businesses with personal credit scores as low as 500-600. They also accommodate recent late payments or collections.

Funding Amounts

You can qualify for lump sum advances from GadCapital, ranging from 50% to 150% of your average monthly credit/debit card sales. Maximum amounts depend on time in business.

Rates & Terms

Compared to other top providers in this guide, GadCapital tends to charge higher rates and fees. Their stated APR range is 30% to 49% for San Diego businesses. Be sure to read all disclosures to avoid surprises.

Speed & Customer Service

GadCapital offers a streamlined online application that is easy to complete. However, funding can take 1-2 weeks after approval. Their customer service team has limited availability.

In summary, GadCapital provides a viable quick funding option despite poor credit but may not be the most affordable or transparent.

How Much Can Your Business Qualify For?

Wondering how much capital your specific small business might qualify for with a merchant cash advance?

Approval amounts depend primarily on your average monthly credit card and debit card sales, rather than credit scores or financial history. Most providers will advance a lump sum equal to 50%-250% of your average Visa, Mastercard, American Express, and debit card revenues.

For example, if your cafe averages $20,000 per month in credit/debit card transactions, you might qualify for an advance of $10,000-$50,000 from an MCA company.

Here are some typical funding amounts available based on monthly card revenues:

• $5,000 in average card receipts = $2,500-$12,500 advance
• $15,000 in average card receipts = $7,500-$37,500 advance
• $30,000 in average card receipts = $15,000-$75,000 advance

Of course, experienced MCA providers like those profiled above will take a holistic look at your business’s finances to customize an offer, not just your latest monthly statement. Higher revenues, time in business, and growth trends can often support maximum advances.

What Do You Need to Qualify for a Merchant Cash Advance?

Given their accessibility for struggling businesses, what do merchant cash advance companies look for when reviewing applications?

Here is an overview of the core criteria MCA providers use to make quick approval decisions:

• A valid business. You must have an incorporated entity or LLC. Sole proprietors and independent contractors also sometimes qualify.
• Time in business. Most providers require at least 9-12 months of continuous operations. However, some specialize in financing startups.
• Business bank account. You need an account to transfer the lump sum advance into and take daily card payments from.
• Monthly card revenues. Your average monthly credit/debit card sales are the primary approval factor. Higher revenues can support bigger advances at better rates. Any type of card transaction qualifies - Visa, Mastercard, American Express, Discover, debit purchases, etc.
• Clean card processing history. No issues with card fraudulent disputes or chargebacks.
• Valid ID. Owner/applicant must have government-issued ID and Social Security number for identity verification.
• Recent personal credit history. While poor FICO scores are accepted, some late payments or collections issues raise concerns.
• Collateral not required. MCA does not require your personal or business assets to secure financing.

That's essentially it. MCA providers can make quick decisions with minimal documents and qualifications. Your future revenue potential matters far more than your credit score or ability to pledge collateral.

How Much Do Merchant Cash Advances Cost?

Merchant cash advances tend to be more expensive than traditional bank loans but offer quick access to capital that unsecured loans cannot provide. Here are the primary costs to understand when considering MCA offers:

Fixed Daily Repayment Rate

This is the fixed percentage or fee deducted from your daily credit card sales toward repaying the lump sum advance until it is satisfied. Typical rates range from 5% to 20% of gross card transactions.

For example, a 15% rate means 15 cents of every $1 in card payments gets deducted per day until the advance balance is repaid.

Daily rates depend on your risk level, requested advance amount, and financing term negotiated. Higher risk applicants pay higher repayment percentages.

Effective APR

While MCA providers do not charge interest, their fees essentially work out to an Annual Percentage Rate (APR) of cost. According to the Small Business Administration, MCA APRs often equate to 36% - 60% when fees are converted to an annual interest rate for comparison purposes.

However, APR disclosures can be misleading. What matters most is the fixed daily repayment rate negotiated, since that dictates your out-of-pocket costs. The effective APR just puts it in annual interest terms.

Initial Origination or Underwriting Fees

Some MCA companies charge 1% to 5% of the total advanced amount upfront at closing. However, others do not. Be sure to clarify if any origination fees apply.

Late Payment Penalties

Many providers will add a late fee or increase your daily repayment rate if card processing is interrupted or payments fall behind schedule. Check policies.

Prepayment Penalties

If you pay off the MCA early, some charge an additional 1% to 5% termination fee while others allow prepayment without penalty. Ask before signing.

To recap, you want to negotiate the lowest daily repayment percentage possible. Effective APR is just an annual way to consider the total cost. Confirm any added origination, late, or prepayment penalties.

How Long Does It Take to Get Funded by an MCA Company?

A major benefit of merchant cash advances is quick access to capital. Here are the typical funding timelines to expect with top MCA providers:

Online Application – 5 to 15 minutes

Approval Decision – Within 1 business day

Funding – 2 to 7 business days after approval

The fastest providers can underwrite and transfer an advance to your business bank account in under 48 hours, while marketplace platforms tend to take a bit longer processing through multiple lenders.

Either way, MCA funding can be completed in days, unlike traditional lender approvals which often take weeks or months. When you need immediate working capital, merchant cash advance companies offer the quickest solution.

What are the Repayment Terms of Merchant Cash Advances?

Rather than fixed monthly payments like a term loan, MCA repayments fluctuate daily based on your credit card sales volume. Here are the typical repayment terms and structures to expect:

• Daily Repayment – A fixed percentage of each day's Visa/MC/AMEX/debit card sales is deducted until the full lump sum advance amount has been repaid.
• Flexible Payments – Repayments go up and down based on your transaction volume. Seasonal businesses often favor this model.
• Standard Term Length – Most MCA agreements last 6 to 12 months until the advance is fully paid back from card receipts.
• Early Repayment - Some providers allow you to pay the remaining balance early without penalty. Others charge a prepayment fee.
• Repayment Method – Payments are made automatically through PCI-compliant ACH debits from your business checking account based on daily card batches.
• Liability – MCA repayments are tied to card processing, not personally guaranteed. However, your business remains liable until repaid.

Prioritizing a low repayment rate helps reduce the total cost of capital accessed through a merchant cash advance.

Benefits of Merchant Cash Advances for Small Businesses

Beyond just being more accessible for poor credit applicants, merchant cash advances offer other unique benefits compared to traditional financing options:

• Fast funding – Receive capital in your account within days or weeks rather than months
• Flexible terms – Repayments adjust based on seasonal sales swings
• Credit score not important – Funding based on card revenues, not personal creditworthiness
• Unsecured – No need to pledge business or personal assets as collateral
• Convenient – Easy online applications and automated repayments
• retain full business ownership – Sell no equity in your company

For San Diego small businesses that tend to experience volatility or seasonal slow periods, the adjustable nature of MCA repayment amounts provides needed flexibility compared to rigid loan terms that increase hardship during slow sales months.

Just be sure to partner with an established MCA provider offering competitive rates and transparent processes.

What are the Risks of Merchant Cash Advances?

While providing many advantages, merchant cash advances also come with some risks to consider:

• Higher cost – Effective interest rates are typically 36% - 60%, much pricier than secured financing
• Variable repayments – Makes cash flow management challenging as daily debits fluctuate
• Short terms – Most MCAs must be repaid within 6-12 months
• Potential prepayment penalties – If you repay early, some providers charge expensive termination fees
• Personal credit damage – Defaulting on an MCA agreement can hurt your personal credit reports and FICO scores
• Business failure – If card revenues drop too far, repaying the advance may become impossible
• Debt cycles – Relying on MCAs long-term can trap companies in an expensive debt cycle reminiscent of payday loans.

To minimize risks when using merchant cash advances, be conservative with advance amounts and repayment term lengths. Have a plan to repay in full within 12 months or less.

Expert Tips for Finding the Best Merchant Cash Advance Company

If you have decided a merchant cash advance is the best financing option for your San Diego small business' current situation, here are expert tips for finding the right provider:

Disclaimer: The reviewed loan websites are loan-matching services, not direct lenders, and have 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, and 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.