California Merchant Cash Advance With Easy Approval For No Credit Check

Quick access to capital frequently challenges California’s 2.5 million small businesses. When cash flow takes a hit, owners without pristine personal credit may struggle to secure a traditional bank loan or SBA financing fast enough to address the crunch.

Merchant cash advances (MCAs) have emerged as an alternative financing option for merchants needing urgent funding but not meeting requirements for standard loans. Instead of relying on FICO scores, MCA providers use business financial data to make offers. This allows them to extend capital to businesses turned down elsewhere.

Best 5 California Online Lenders for Small Businesses

• GreendayOnline: Offers no doc, fast approval loans tailored for small businesses seeking same-day funding.
• Paydaychampion: Specializes in bad credit merchant cash advances with an easy approval process and online application.
• Rixloans: Provides unsecured lending options for businesses with no credit check and same-day approval.
• PaydayDaze: Features low interest, fast approval cash advances, making them a great option for small businesses.
• GadCapital: Offers a streamlined online application for merchant cash advances with easy approval and same-day funding for businesses.

However, accelerated approval comes at a literal cost in terms of high-interest rates and set daily repayment regardless of revenue fluctuations after securing the advance. This guide examines the MCA alternative landscape for California merchants needing quick money who may lack stellar credit.

What is a Merchant Cash Advance?

A merchant cash advance provides a lump sum of capital to a business in exchange for a fixed percentage of future credit/debit card sales over a defined period until the full "purchased amount" plus fees is repaid.

With an MCA, a company called a funder provides a merchant with an upfront sum based on average monthly card revenues. The merchant receives this lump payment upfront, but the funder takes a fixed percentage of daily card receipts via ACH until the total amount is paid back.

This differs from a term loan in that the funder can access the merchant's card processing account and withdraw payments daily based on sales. There's no fixed monthly repayment schedule. The percent taken per day or week depends on individual terms but averages 1-4% of volume.

How Do Merchant Cash Advances Work?

The basic process involves:

• A merchant applies with business financial details
• The funder reviews average monthly card revenues
• If approved, the lump sum is deposited into the business bank account, usually within 1-2 days
• The funder takes a fixed percentage of daily card sales until the full amount is repaid
• Repayments happen automatically via ACH withdrawals
• The term lasts until the total advanced amount plus fees is repaid in full

Key Characteristics of Merchant Cash Advances

Merchant cash advances have unique features that differentiate them from standard small business loan products:

• No credit check - Since repayments come from card receipts, personal credit scores aren't considered
• Very fast funding - Approvals often happen in 1-2 days, and funding in as little as 24 hours after acceptance
• Fixed daily repayment - A set percent of each day's card revenues is withdrawn until the balance is zero
• Costs based on future sales - Total fees relate to the term length and card volume during the payback period
• Short duration - Advances are quickly repaid over weeks or months as payments are taken daily
• Potentially high effective APRs - Due to fees and accelerated repayment, APR equivalent costs are higher than conventional loans
• Risks - The ability to repay is paramount as payments are forced daily from card receipts

Top 5 Merchant Cash Advance Companies in California

California companies needing quick capital but lacking strong credit have options like merchant cash advances available. These top five providers offer easy applications and funding for those who may not qualify through typical lenders:

1. GreendayOnline

GreendayOnline provides rapid funding for California merchants through a streamlined application focused on business financial data rather than consumer credit reports. Its automated system provides approval decisions instantly without a formal credit check.

Once approved, GreendayOnline sends capital within one business day. Funding amounts range from $5,000 to $250,000 based on average monthly credit card volume. The exact amounts depend on individual qualifications.

Repayment occurs at a fixed percentage or 1-4% of daily credit/debit card sales until the full amount is repaid. Payments happen automatically via ACH withdrawals from the business checking account.

GreendayOnline has delivered over $1 billion in MCA funding to merchants nationwide since 2006. It touts its smooth application and rapid capital delivery within 24 hours.

2. PaydayChampion

PaydayChampion allows California merchants to get offers and funding urgently without standard credit examinations. Instead of FICO scores, it analyzes business financial documents like bank statements and card processor reports to make approval decisions quickly.

Once approved, PaydayChampion sends capital to the business checking account by the next business day. MCA amounts range from $5,000 to $250,000, depending on average monthly revenues. Exact sums are determined individually.

Repayment occurs at a fixed rate of 1-4% of daily credit card volume. These payments are withdrawn automatically via ACH each day until the full purchased amount is repaid. PaydayChampion has served over 50,000 small businesses across the U.S.

3. RixLoans

RixLoans focuses on streamlining the MCA application process for California merchants needing urgent working capital. Its website promises approvals in minutes with no credit check required.

Instead of FICO scores, RixLoans evaluates business financial documents like prior months' card receipts and bank statements. Based on average monthly sales, approved loans feature next-business-day funding of $5,000 to $250,000.

The merchant repays the advance at a 1-4% daily credit/debit volume rate. RixLoans withdraws this percentage automatically until the full purchased amount plus fees is paid off. Repayment terms often last 3-12 months.

RixLoans positions itself as a fast and frustration-free way for merchants to access capital when traditional lending takes too long or ends in denial. Easy applications and rapid funding are its hallmarks.

4. PaydayDaze

PaydayDaze specializes in quick capital for merchants unable to qualify for standard credit products. It makes instant MCA decisions based on business financial data instead of consumer credit reports.

PaydayDaze funds approved advances of $5,000 to $250,000 into merchant accounts within one business day. Exact amounts depend on average monthly card revenues and other qualifications.

Borrowers repay the lump sum at a fixed rate of 1-4% of daily credit/debit card volume via automatic ACH withdrawals from their business checking account. The agreement ends when the full purchased amount is repaid through the stacked daily payments. This typically takes 3-12 months.

PaydayDaze advertises fast applications, approvals, and funding for merchants needing capital through non-traditional means. No lengthy paperwork or credit checks slow down the process.

5. GadCapital

GadCapital allows California merchants to access capital through an expedited application focused on business financials rather than consumer credit profiles. Approvals are instant based on income statements, processing histories, and bank data.

Once approved, GadCapital sends lump sum advances of $5,000 to $250,000 within one business day. Exact amounts depend on the average monthly card volume and other qualifications.

Recipients repay the money at a fixed rate of 1-4% of daily credit/debit card sales. GadCapital withdraws this percentage each day via ACH until the full purchased amount is collected. Terms range from a few weeks to several months, depending on the total sum.

GadCapital advertises quick capital for California merchants who may not qualify instantly elsewhere. Same-day funding and credit check-free approvals differentiate its MCA product.

What are the Pros and Cons of Merchant Cash Advances?

Merchant cash advances provide easy access to capital but also feature unique risks and costs merchants should weigh:

Pros

• Very fast funding, often in 1-2 days
• Approval based on business finances rather than personal credit
• Few documents or minimal paperwork required
• Fixed daily repayment helps match cash flow timing
• No collateral or personal guarantee is needed

Cons

• Very high effective interest rates due to fees
• Daily repayments are required regardless of sales fluctuations
• Revenues are unavailable until the advance is fully repaid
• More expensive overall than conventional loans
• Risk of overextension if payments exceed affordability

The flexibility and speed of MCA products trade-off against high costs and repayment risk factors merchants must consider before accepting offers.

What are Merchant Cash Advance Rates and Fees?

Instead of interest rates, MCA providers charge fees equating to very high APRs:

• Advance Amount - Lump sum payment deposited upfront
• Fixed Percent Fee - Daily rate withdrawn from credit card sales
• Effective APR - Annualized rate costs range from 60% - 240%

While not technically interest, the fees involved make the APRs on MCAs considerably higher than those on most conventional small business loan products. Merchants repay 1.5 to 2.5 times the advanced amount.

What are the Requirements to Qualify for a Merchant Cash Advance?

MCA providers evaluate applications based on business financial qualifications rather than consumer credit factors. Typical requirements include:

• Time in business - Often 6+ months of operations
• Monthly credit card revenues - Minimum needed to repay the advance. Often at least $5,000-$7,500+
• Financial documents - Recent statements showing card sales and deposits
• Valid business license/EIN
• Active credit card processing account
• No history of recent bankruptcies/foreclosure

As MCA approval relies on sales rather than FICO scores, they accommodate new businesses and ones with average credit but consistent cash flow. Qualifying involves demonstrating adequate monthly volume.

What is the Merchant Cash Advance Application Process?

The application process for MCA products involves:

• Initial inquiry - Merchant completes informational request form with business details
• Document request - The provider asks for financial statements showing recent card revenues
• Proposed terms - If qualified based on sales, the provider emails the proposed agreement with fees and amounts
• Acceptance - The merchant accepts terms electronically and submits required verification docs
• Funding - Provider deposits lump sum payment within 1-2 business days
• Repayment - Daily percentage of card sales withdrawn until the total amount is satisfied

Approval requires submitting statements and accepting electronically. Once approved, funding happens almost immediately. The streamlined process provides urgent access to capital.

How Long Does It Take to Get Approved and Funded?

A primary advantage of MCA products is the speed of approval and funding:

• Applications take less than 10 minutes to complete
• Approval decisions are made instantly
• If approved, contracts are signed and returned same-day
• Funding often occurs within 24 business hours of finalizing terms

The entire process, from application through funding, frequently happens within two business days, sometimes even faster for qualified applicants. Traditional loan approvals often take weeks or months rather than days.

What Happens if I Can't Repay My Merchant Cash Advance?

With MCA products, fixed daily payments get deducted regardless of actual revenues. Not meeting obligations can create issues:

• Missed payments accrue additional fees and compound costs
• Providers may be able to freeze merchant processing accounts
• Legal action is possible in severe cases of non-payment
• Future eligibility for financing can be damaged

MCAs carry repayment risks if sales volumes are inconsistent or dip too low. Merchants must ensure they can accommodate payments even through revenue declines. Failing to repay incurs additional fees and adverse actions.

Best Practices When Using MCA Financing

Merchants can manage MCA products responsibly by:

• Accurately calculating affordable payment amounts before accepting
• Maintaining sales levels high enough to cover daily withdrawals
• Having a plan if revenues dip to meet fixed payments
• Avoiding taking multiple advances and overextending
• Using MCAs for temporary needs and transitioning to lower-cost products

Planning cash flow prudently allows merchants to leverage MCA benefits without taking on unmanageable repayment obligations. These advances best serve as short-term solutions while seeking additional working capital through cheaper sources.

Key Takeaways

• Merchant cash advances provide fast lump-sum financing based on future card sales rather than credit scores.
• Approvals happen in minutes, and funding in as little as one business day
• High fees mean equivalent APRs are very expensive, often exceeding 100%
• Daily repayments happen regardless of actual sales, creating cash flow risks
• MCAs best serve as short-term solutions for immediate capital needs
• Careful qualification considerations and calculations help merchants avoid repayment pitfalls

Frequently Asked Questions

What credit score is needed to qualify for a merchant cash advance?

MCA providers do not check personal credit reports or rely on credit scores for approval. Qualification is based on business financial data instead. Those with low credit scores can secure MCAs by demonstrating adequate revenues.

How quickly can I get money from a merchant cash advance?

One of the primary appeals of MCA products is rapid funding. Approvals often come instantly, and funding hits accounts before the next business day. The entire process may take only 1-3 days.

Where does the money from a merchant cash advance come from?

MCA companies provide the capital from their funds or relationships with institutional investors. The lump sum payments advanced to merchants come directly from the MCA provider in exchange for repayment via future card sales deductions.

Are MCA payments fixed or variable?

Unlike conventional loans, MCA products do not have set installment payments each month. Rather, they deduct a fixed percentage of daily credit card volumes. If sales decline, so do the daily repayment amounts since they fluctuate based on actual receipts.

Can an MCA garnish my wages if I default?

No, because MCA repayments come from future credit card revenues rather than wages or assets. However, providers can place holds on merchant processing accounts for non-payment. MCA defaults primarily damage eligibility for future financing rather than resulting in wage garnishments.

What are alternatives to merchant cash advances?

Conventional term loans, lines of credit, and SBA loans often cost less than MCA products. However, they feature lengthier approval processes and stringent credit requirements merchants may not satisfy. Additional options like credit cards or PO financing may better suit some small business needs.

Conclusion

For merchants requiring quick access to capital but lacking pristine credit, California MCA providers represent a short-term financing alternative to bridge urgent funding gaps. Their approval flexibility and rapid deployment of lump sums account for their growing popularity.

However, the high costs and fixed daily repayment structures pose cash flow risks merchants must plan for responsibly. While MCA products solve immediate needs, they are not long-term solutions. Business owners should pursue more affordable funding options as soon as they are eligible to transition from the higher-cost MCA structure.

Careful cash flow calculations, conservative amounts, and proper expectations can allow merchants to utilize MCAs effectively without overextending their finances. However, the accelerated approval process trades off against considerable expenses and repayment requirements merchants must diligently prepare for.

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.