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Soho Wealth Funding

Funding option

Fast business capital — with the trade-offs explained first.

A merchant cash advance may help with a short-term business need when speed and cash flow matter more than traditional loan structure.

An MCA is generally a purchase of future business receivables, not a traditional loan. Payments or remittances may be taken daily or weekly, depending on the agreement.

Terms card

Merchant cash advance

What it is

A purchase of a portion of your future sales. Not a loan, and not priced like one.

What it costs

Cost is usually expressed as a factor rate, which is not an APR and cannot be compared to one directly. A factor rate tells you the total dollars you will repay. Ask for three numbers: the amount you receive, the total amount you owe, and the size and frequency of each remittance. Soho's fee is separate and paid by you: a percentage of the amount actually funded, between 3% and 15% depending on the product, given to you in writing first.

What decides it

Mainly business sales and deposits: how much comes in, how often, and how steady it is. Credit matters less than for most products.

Who approves it

The funding provider.

When it's the wrong tool

  • You would be covering ongoing monthly losses.
  • You would be replacing one advance you cannot afford with another.
  • Your cash flow cannot absorb frequent withdrawals.
  • The purchase will not return more than it costs.
  • You qualify for materially cheaper long-term credit.

Read our full funding disclosures

When an MCA may make sense

  • Urgent inventory with a measurable return.
  • Time-sensitive equipment repair.
  • Short-term seasonal inventory.
  • A high-confidence revenue opportunity.
  • A business with steady sales but limited traditional credit options.

When an MCA may not make sense

  • You would be covering ongoing monthly losses, which an advance delays rather than fixes.
  • You would be replacing one advance you cannot afford with another, which usually increases the total you owe.
  • Your cash flow cannot absorb frequent withdrawals, because remittances may be taken daily or weekly.
  • The purchase will not return more than it costs, so the advance leaves the business worse off.
  • You qualify for materially cheaper long-term credit, which is worth comparing first.

What you should know before you sign

Ask any MCA funder for these in writing — not only us. If a funder will not answer them plainly, that is your answer.

  • Total receivedThe total amount you will actually receive.
  • Total owedThe total amount you will owe in full.
  • Factor rateThe factor rate, if one applies to the agreement.
  • Payment amountThe expected payment or remittance amount.
  • ScheduleWhether remittances are taken daily or weekly.
  • Expected termHow long the agreement is expected to run.
  • ReconciliationReconciliation or true-up rights, if the agreement includes them.
  • PrepaymentThe rules for paying the balance early.
  • All feesEvery fee in the agreement, listed and priced.
  • Personal guaranteeWhether a personal guarantee is required, if applicable.
  • LiensAny liens or security interests involved, if applicable.

Availability and requirements vary by state and funding provider.

Questions people ask

Is an MCA a loan?
Generally no. An MCA is usually structured as a purchase of future business receivables rather than a traditional loan.
What is a factor rate?
A factor rate is a way of expressing the total dollars you will repay. It is not an APR, and it should not be compared to one directly.
How are payments taken?
Payments or remittances may be taken daily or weekly, depending on the agreement. Read the schedule before you sign.
Who decides whether I qualify?
The funding provider does, based mainly on business sales and deposits. Soho does not make that decision.
What does Soho charge?
Soho Wealth Group is paid by the client, not by the bank or funding provider. The fee is a percentage of the amount actually funded — between 3% and 15%, depending on which product is used. The exact percentage for your situation is given to you in writing before you agree to anything.

Read our full funding disclosures

See whether an MCA may fit.

Share a few details and we will talk through whether this path makes sense for your situation. No pressure, and nothing is submitted without your say-so.

See whether an MCA may fit.

Compare other business funding.

This may not be the right tool for you. Put all four funding paths side by side and compare what each one is, what it costs, and who decides.

Compare other business funding.