The merchant cash advance has the worst reputation and the best speed in small business finance. Both are earned. fundivi's merchant cash advance is described as its fastest funding product, with a same day decision and capital typically delivered the same day as approval. It is also priced higher than a bank loan, and it works very differently from one. This guide is organized as a plain language dictionary, because most bad MCA decisions come from not knowing what the words mean. Read the terms, then the timeline, then decide.
When you are ready, check what you qualify for with a soft inquiry. It takes about three minutes.
A Plain Language Dictionary
Advance
Money paid to your business up front, in exchange for a share of your future revenue. It is called an advance and not a loan because the repayment depends on your sales. That said, read your agreement carefully, since terms vary.
Factor rate
A multiplier used to set the total amount you will repay. A factor rate of 1.30 on $10,000 means a payback of $13,000. It is not an annual percentage rate. fundivi's page says factor rates are typically higher than term loan APRs, and does not publish a number on the MCA page itself. Elsewhere, fundivi lists revenue based financing, which it says is the same product, as starting from 1.28.
Payback amount
The advance multiplied by the factor rate. It is the total you owe, and it does not change if you repay early unless the agreement provides a discount.
Share of revenue
The portion of your sales collected to repay the advance. fundivi describes it as a small daily share of revenue, paid until the agreed amount is delivered. There is no fixed monthly payment.
Term
The expected repayment period. The product page lists 3 to 18 months. Because repayment follows sales, the real end date depends on your revenue.
Holdback or split
Other names for the share of revenue that is collected. Ask your offer to state the percentage and the method.
Reconciliation
A process some providers offer to adjust payments if revenue falls. Ask whether it is available.
Stacking
Taking a second advance while a first is still outstanding. It can be done, but it multiplies the share of revenue taken from each day's sales. fundivi says it can often consolidate, refinance or fund alongside an existing position, but you should model the combined effect carefully.
What the Product Page Publishes
- Amount: $10,000 to $2,000,000
- Term: 3 to 18 months
- Decision: Same day
- Funding: Typically the same day as approval
- Repayment: A small daily share of revenue, no fixed monthly payment
- Documents: 3 to 5
- Time in business: 4+ months
- Monthly revenue: $10,000+ average
- Credit: 500+ FICO
- Bank statements: 3 months
- Other: Voided business check and a driver's license
The page describes underwriting as more flexible than a term loan, with minimal paperwork. The tradeoff, which the page states directly, is faster qualification and more forgiving credit thresholds in exchange for higher cost.
A Slow Week and a Strong Week
This table uses a hypothetical 10 percent share of revenue to show how repayment flexes. The percentage is an assumption for illustration, not a fundivi term.
- Strong week: Revenue: $18,000; Payment at a 10 percent share: $1,800; What it means: Larger payment, balance falls faster
- Normal week: Revenue: $14,000; Payment at a 10 percent share: $1,400; What it means: Steady progress
- Slow week: Revenue: $8,000; Payment at a 10 percent share: $800; What it means: Smaller payment, cash is not squeezed
- Terrible week: Revenue: $3,000; Payment at a 10 percent share: $300; What it means: Payment shrinks, but the payoff takes longer
A fixed monthly loan payment would be identical in all four weeks. That flexibility is the real product, and it is why the page lists "what happens if I have a slow week" as a core question. The answer is that the payment gets smaller. The cost of the flexibility is that the payback total is fixed, so slower weeks mean a longer repayment.
The Math on a $40,000 Advance (Hypothetical)
Assume a factor rate of 1.28, the lowest listed for revenue based financing, and a business with $60,000 in monthly revenue paying a 10 percent share.
- Advance received: $40,000
- Payback at 1.28: $51,200
- Cost of capital: $11,200
- Monthly payment at a 10 percent share of $60,000: $6,000
- Approximate time to repay: About 8.5 months
If the business grows and monthly revenue rises to $80,000, the payment rises to $8,000 and the payoff arrives in about 6.4 months. If revenue falls to $40,000, the payment drops to $4,000 and the payoff stretches to about 12.8 months. The cost stays $11,200 in all three cases, which is why owners should compare dollars and not percentages. Get your real numbers from the written offer and run them through the cost calculator.
Same Day Funding: The 24 Hour Timeline
The advance is fundivi's fastest product because the file is simple: bank statements, ID and a voided check. The sequence follows the how it works page.
- Apply: About three minutes, no hard credit pull at this stage
- Review: Cash flow, time in business and purpose of funds, not just a credit score, through the underwriting engine
- Decision: Same day: approval, conditional offer or decline with reasons
- Offer: Amount, payback, share of revenue and itemized fees in writing
- Funding: Capital typically delivered the same day as approval
The header sums it up: decision in hours, wire the same day. Larger or more complex files can take longer.
Six Questions to Put in Writing
An advance agreement is shorter than a loan agreement, which makes every sentence count. Before you accept, get written answers to these.
- What is the exact payback amount, and is it fixed?
- What percentage of revenue is collected, how often and from which account?
- Is there a reconciliation process if my revenue drops, and how do I request it?
- What fees are deducted from the advance before I receive it?
- What happens if I change banks or processors?
- What are the consequences of a missed or reduced payment, and who is personally responsible?
Cost Discipline: A Quick Rule
Divide the cost of capital by the profit the money will produce. In the $40,000 example above, the cost is $11,200. If the inventory or equipment financed by that money will generate $25,000 in additional profit within the repayment period, the advance pays for itself with room to spare. If the expected extra profit is $8,000, it does not, and a cheaper product or a smaller amount is the better choice. Speed has value, but only when the thing it buys is worth more than the premium. Owners who run this simple test before borrowing rarely regret the decision, and those who skip it often do.
Preparing for a Same Day Advance
Download three months of statements as complete PDFs. Confirm your business name matches across statements and your application. Know your monthly revenue and be ready to say what the money is for. Have your voided check and ID ready. Apply in the morning, answer follow up questions quickly and read the offer in full before signing. That routine is the difference between funds the same day and funds the next.
Streamlined Application: No Committee, No Projections
There is no loan committee, no projection spreadsheet and no collateral appraisal. The application asks for business details and the amount, then collects three months of statements. If you want a person to walk you through it, book a consultation, or see the whole sequence on the how it works page.
Hybrid Funding Model: What Happens Near the Minimums
If you are close to the 500 FICO or $10,000 revenue line, a partner may have a different appetite than fundivi's direct product. The hybrid funding model reviews your application once and, if it does not fit, passes it to a vetted lending partner without resubmission. It can also surface a cheaper product when one fits your situation better than an advance.
Best Rated Is a Claim: Here Is What You Can Check
No star ratings are published by fundivi, and none are invented here.
- A BBB Business Review seal for fundivi Inc. in Brooklyn, New York
- A candid statement on the product page that this product costs more than a term loan
- Itemized fees in writing before you sign
- Soft inquiry prequalification
- A consultation option and a customer feedback page
Because this is a higher cost product, press harder for transparency: the payback amount, the percentage, the schedule, any fees and what happens if you change banks.
Who Uses a Merchant Cash Advance Well
The restaurant with a broken oven
Steady daily revenue and an urgent repair. The advance arrives the same day and the payment follows the dinner rush.
The salon during a slow season
Revenue dips, fixed costs do not. A smaller share of a smaller week keeps cash flowing.
The retailer buying inventory
A short, defined opportunity with a quick payoff from sales of that inventory.
The ecommerce brand scaling ads
Marketing spend that produces sales quickly lets the revenue based repayment keep pace.
Who Should Think Twice
- Businesses with thin margins, where a share of revenue could consume more than the profit.
- Businesses already carrying advances, because stacking multiplies the daily draw.
- Owners who do not need speed, since a term loan or line of credit costs less over time.
- Anyone who cannot explain exactly how the money will produce revenue.
If you have a week or more, compare working capital, a term loan or a line of credit. The funding product matcher sorts the options, and the resources library has more guides. Learn about the team on the about page.
Merchant Cash Advance FAQ: Plain Answers
How fast is a merchant cash advance?
Same day decision, with capital typically delivered the same day as approval. It is described as fundivi's fastest product. The speed comes from simple documentation: bank statements, ID and a voided check. Larger amounts or complex files can take longer, and no timing is guaranteed.
How is the daily payment calculated?
It is a small daily share of your revenue. Your written offer states the percentage and the collection method. As an illustration, a 10 percent share of $14,000 in weekly revenue is $1,400. Because repayment follows sales, strong weeks produce larger payments and slow weeks smaller ones.
Is this the same as revenue based financing?
The product page describes them as the same product. fundivi also lists revenue based financing from $50,000 up to $5,000,000. Differences in naming and scale can matter, so compare the offers in front of you and ask how the structure is described in the agreement.
What is a factor rate?
A multiplier that sets your total payback. A 1.30 factor rate on $10,000 means $13,000 owed. It is not an annual percentage rate, so it cannot be compared directly to a loan APR without converting for the term. The product page says factor rates are typically higher than term loan APRs.
Can I qualify with bad credit?
The minimum is a 500 FICO, and credit is one factor among several. Cash flow is weighed first. A business with strong deposits and a lower score can qualify where a higher score with thin revenue cannot. Expect higher cost for more forgiving thresholds.
What happens if I have a slow week?
The payment shrinks along with your revenue. The total payback is fixed, so the repayment period may stretch. Ask whether a reconciliation process exists if revenue drops sharply, and how to request it.
What are the eligibility requirements?
At least four months in business, $10,000 or more in average monthly revenue and a 500 or higher FICO score, with three months of bank statements, a voided business check and a copy of your driver's license. The page lists three to five documents in total.
How much can I get?
$10,000 to $2,000,000, with terms of three to 18 months. Your approved amount depends on revenue and cash flow. A request close to your monthly revenue is easier to approve than one far above it.
Is there collateral?
The page does not describe collateral. Read your offer for security or guarantee terms before you sign, and ask specifically whether a personal guarantee applies.
Can I pay it off early?
Ask whether any discount or penalty applies. Because the payback is fixed, early payoff usually saves time and not money, unless the agreement says otherwise.
Can I have more than one advance?
Often possible, but model the combined share of revenue first. fundivi says it can often consolidate or refinance an existing position. Stacking multiplies the daily draw from your sales, so run the numbers on your slowest week.
Does applying hurt my credit?
The first look is a soft inquiry, so your credit score does not move. A hard inquiry is possible only if you accept an offer that requires one, which is rare in practice according to fundivi.
Approval is not guaranteed. Rates and terms depend on qualifications. The tables are illustrations based on assumptions and are not offers.
