A large merchant cash advance works like any other: we buy a portion of your future receivables for a lump sum, and you deliver the purchased amount through daily or weekly payments over up to 10 months. InstaFunders funds from about $500,000 up to $2,500,000. These advances go to established businesses whose deposits sit well above our $50,000 monthly minimum, and the review is more detailed.
Who qualifies for a large merchant cash advance?
The size of an advance follows the size and steadiness of your deposits. A business that deposits just over the $50,000 minimum each month generally won't support a seven-figure advance, because the payments would be too large a share of what comes in. The businesses that fit this program usually have:
- Deposits well above the minimum, consistent from month to month, not driven by one or two unusually large payments.
- Established operations: comfortably past the 12 months minimum, with a track record the statements can show.
- Healthy daily balances, with few or no negative days (the minimum standard is an average of no more than 5 a month).
- A clear use for the money that earns it back within the term, such as a large contract, a significant inventory buy, an acquisition of equipment or an expansion.
- A manageable existing payment load, if there are other advances on the account.
The standard requirements still apply, including a credit score of 500 or higher and a business located outside Utah, New York and Connecticut. See the full requirements.
What underwriting looks at on a larger file
The questions are the same as on any advance; they're just asked more carefully, because a misjudged large advance hurts the business more.
- Revenue quality. Where deposits come from, whether a few customers make up most of them, and whether transfers between your own accounts are inflating the total. We look for true revenue.
- Trend and seasonality. Whether the last three months and the current month show growth, a plateau or a decline, and how a slow season would affect the payment.
- The whole business. All associated businesses and business bank accounts, so the picture is complete.
- Receivables and processing. A current A/R aging report and/or your most recent card processing statement show what's coming in next.
- Existing advances. Every current position and its payment, so the combined load fits. See second-position funding.
- The owners. Credit and identity for every owner.
What documents do I need?
To apply:
- A signed and dated application.
- Your last three months of business bank statements plus month-to-date (four months for California businesses).
- Statements for any and all associated businesses and business bank accounts.
Before funding:
- A driver's license and voided check for all owners.
- A current A/R aging report and/or your most recent credit card processing statement.
On a larger file, an underwriter may come back with questions, for example about an unusually large deposit or a transfer between accounts. Answering them quickly is the best way to keep things moving. The bank statements guide explains what underwriters read.
How long does a large advance take?
Funds can be in your account in as little as 24 hours after approval. Getting to approval can take longer on a larger file simply because there's more to review. The fastest path is a complete file on the first send: every statement, every account, and the stipulations ready to go. More in how fast you can get funded.
Honest considerations
A larger advance means larger payments for up to 10 months. It's the right tool when the money funds something with a clear, near-term return. For long-term projects like buying real estate, a bank or SBA loan with a longer term will usually cost less, if you can qualify and wait; see MCA vs. SBA loan. We'd rather tell you that than fund the wrong thing.
Frequently asked questions
What is the largest merchant cash advance InstaFunders offers?
Up to $2,500,000. Advances from about $500,000 and up go to established businesses with deposits well above our $50,000 monthly minimum. The amount any business qualifies for depends on its deposits, balances, existing advances and credit.
How much revenue do I need for a $1 million advance?
There's no single revenue figure, because the payment has to fit your deposits alongside any other advances, and deposit consistency matters as much as the total. As a rule, larger advances need deposits well above the $50,000 minimum. An underwriter can tell you what your statements support.
Do I need tax returns or financial statements?
To apply, you need a signed application and your last three months of business bank statements plus month-to-date (four months in California). Before funding, we ask for owner IDs, voided checks and an A/R aging report and/or processing statement. An underwriter may ask questions on a larger file.
Can a large advance have weekly payments?
Weekly payments are available in many cases, and they often suit larger businesses whose deposits arrive in big, less frequent amounts. If your other advances are weekly, weekly is available. See weekly payments.
How fast can a large advance be funded?
In as little as 24 hours after approval. Larger files can take longer to reach approval because there's more to review. Sending complete statements for every account and having stipulations ready is the quickest route.