How to Refinance a Merchant Cash Advance
If daily payments from a merchant cash advance are squeezing your business, you have options. The goal is to replace expensive, frequent payments with cheaper financing on a longer schedule, without making things worse. Here's how to approach it.
Step 1: Know exactly what you owe
Gather every advance agreement and find:
- The remaining balance (the purchased amount minus what you've paid)
- Your payment amount and schedule (daily or weekly)
- Any early payoff discount. Many advances owe the full amount even if you pay early, but some offer a discount.
- The reconciliation clause. Many contracts let you ask for lower payments if your sales have dropped.
- Default terms, including any personal guarantee, blanket lien or confession of judgment
Run your numbers through our factor rate to APR calculator to see what each advance really costs per year.
Step 2: Ask for reconciliation if your sales dropped
If your contract has a reconciliation clause and your revenue has fallen, ask the provider in writing to adjust your payments to your actual sales. Send recent bank statements as proof. Asking usually costs nothing and can give you breathing room while you look for refinancing.
Step 3: Look for cheaper, longer financing
Refinancing works best when the new financing has a lower total cost and lower, less frequent payments. Options to compare:
| Option | Why it can help | Lenders on Lender List |
|---|---|---|
| SBA loan | Lowest rates and longest terms, but slow. Current SBA rules generally don't allow an SBA 7(a) loan to pay off an active merchant cash advance, so ask the lender what it can do. | iBusiness Funding, Busey Bank, Milestone Bank |
| Online term loan | Fixed payments over a longer term, faster than SBA | Lendistry, QuickBooks Capital |
| Line of credit | Flexible, often weekly or monthly payments | Bluevine, Fundbox |
| Revenue-based financing | Payments rise and fall with your sales | Wayflyer, Clearco, 8fig |
Not every lender will pay off a merchant cash advance, and an existing lien or several open advances can make approval harder. Ask each lender directly whether it refinances advances and how it handles existing liens.
Step 4: Avoid making it worse
- Don't stack. Taking another advance to cover the first one usually deepens the problem.
- Be wary of "debt relief" and "restructuring" companies that charge large upfront fees or tell you to stop paying. Stopping payments can trigger a default, lawsuits and frozen accounts.
- Don't switch bank accounts to block payments without legal advice. It's often a default under the contract.
- Talk to an attorney who handles merchant cash advance cases if you've received a default notice, a lawsuit or a confession of judgment.
Questions to ask any refinancing lender
- What is the total amount I'll repay, and the APR?
- How often are payments taken, and how much is each one?
- Will you pay the advance provider directly?
- Is there a prepayment penalty, origination fee or personal guarantee?
- Will you file a lien on my business assets?
Term loans and lines of credit to compare when refinancing an MCA
| Lender | Type | Amounts | Cost | Funding speed |
|---|---|---|---|---|
| Backd (Austin Business Finance) | Online lender; business loans originated by FinWise Bank, serviced by Backd | Line $50K to $1M; term loan $50K to $1.5M | Not published; 35% to 55% APR on the line (NerdWallet est.) | Decision in under 24 hours; funding can take longer |
| Bluevine | Fintech; line of credit issued by Celtic Bank, serviced by Bluevine | $1,000 to $250,000 | Rates from 7.8% (LendingTree: per 26-week term); about 29% APR before the draw fee (Lender List est.) | Decision in about 5 minutes; funds within 24 hours, instantly to Bluevine Checking |
| Breakout Capital | Direct funder (invoice factoring, term loans, asset-based and interest-only loans) | Factoring limits up to $10,000,000; term loans $25,000 to $1,000,000 | Factoring fees 1% to 3% of invoice value; term loans from 1.24% per month | Factoring: first funding about 4 to 5 business days, then within 72 hours; term loans the same day you sign, at the earliest |
| Fundbox | Online lender and embedded-finance platform (fintech) | $1,000 to $150,000 on the line (third-party reported) | Fees from 4.66% per 12-week draw and 8.99% per 24-week draw (about 36% to 37% APR) | Decision in minutes; funds within 2 business days |
| Lendistry | CDFI and nonbank SBA Preferred Lender (direct lender) | $10K to $5M | SBA 7(a) variable from 7.75% (11.34% FY2026 average); non-SBA fixed from 11.99% | 5 to 20 business days (SBA up to $350K); 35 to 90 business days (SBA Standard); 3 to 7 business days (non-SBA) |
| Mulligan Funding | Online lender; most loans issued by FinWise Bank | Up to $10 million (no published minimum) | Not published (benchmark at OnDeck's 53.2% average APR: about $7,360 on $25,000; not a Mulligan quote) | Approval in a few hours; funds as soon as the same business day |
| Newity | SBA lender service provider (not a lender); loans made by partner banks | Up to $350,000 (SBA 7(a), Growth Term); up to $1,000,000 (two newer SBA programs) | SBA: Prime + 2.75% to 3.75% variable; Growth Term: 15% to 24% fixed | Offer in under 10 minutes; closing time not published |
| OnDeck | Direct online lender (OnDeck family of companies or Celtic Bank) | $6,000 to $200,000 (line); $5,000 to $400,000 (term loan) | Average APR 59.8% (line) and 53.2% (term loan), first half of 2026 (NerdWallet: 39% to 99% line, 35% to 99% term loan) | Same day on weekday checkouts by 10:30 a.m. ET; otherwise 2 to 3 business days |
| QuickBooks Capital | In-software lender; loans issued by WebBank | $1,500 to $250,000 (term loan); $1,000 to $100,000 (line) | 9.99% to 36% APR (term); 13.49% to 35.99% APR (line) | Decision in as little as 30 seconds; funds in 1 to 2 business days |
| SmartBiz Bank | FDIC-insured national bank (cert 58158) and online SBA platform | $50,000 to $350,000 (SBA 7(a), online) | Prime + 3% to Prime + 4.75%, variable; 11.25% median starting rate | A couple of weeks; 4 to 6 weeks above $150,000 |
| TD Bank (Small Business) | FDIC-insured national bank (cert 18409); SBA Preferred Lender | SBA up to $5,000,000; USDA up to $25,000,000 (last 12 months: $10,000 to $5,000,000) | 10.0% median starting rate (last 12 months); 3.0% to 14.0% | Express response usually within 48 hours; 7(a) closing time not published |
These lenders offer fixed-payment term loans or lines of credit; ask each one directly whether it will pay off existing advances. From each lender's Lender List review (Lender List est. where noted). Updated 2026-10-27. Confirm terms with the lender.
MCA refinancing FAQ
Can I refinance a merchant cash advance into a loan? Often, yes, if your revenue and bank statements show you can carry a fixed payment. Online term lenders, lines of credit and, for stronger businesses, SBA 7(a) loans can pay off MCA balances. Expect lenders to review your daily debits and current balances. Is it legal to stop paying a merchant cash advance? Stopping payments can trigger default, fees, UCC lien enforcement or a lawsuit. Talk to a business attorney before you stop paying, and be cautious of debt-relief firms that tell you to stop paying first. What is MCA reconciliation? Many MCA contracts let you ask the funder to adjust daily payments to match a drop in sales. Ask in writing, attach bank statements, and keep a copy of the request. How do I compare an MCA payoff with a new loan? Ask for the payoff amount (and any early-payoff discount), then compare it with the total cost of the new loan. Convert factor rates with our APR calculator. What is a confession of judgment? A clause where you agree in advance that the funder can get a court judgment without a lawsuit if you default. Some states limit them. See our lending terms glossary. This page is general information, not legal or financial advice.