An ecommerce business with $4,000-$6,000+/month in bank deposits (from Stripe, PayPal, Shopify Payments, or any processor that deposits to your business account), 6+ months in business, and a 500+ FICO can access $10,000 to $500,000 via MCA. No platform exclusivity, no revenue-share with your marketplace. Repayment is a daily percentage of your bank deposits across all channels.
Which Ecommerce Platforms Qualify
MCA qualification is based on bank account deposits, not which platform you sell on. Any ecommerce business that receives payouts deposited to a business checking account can qualify, including:
| Platform | Qualifies? | Key Requirement |
|---|---|---|
| Shopify (Shopify Payments / Stripe) | Yes | Payouts deposited to business checking |
| WooCommerce / WordPress | Yes | Payment processor deposits to business account |
| Amazon FBA/FBM (standalone DTC) | Yes | Amazon disbursements to business bank (or see Amazon seller guide) |
| Etsy | Yes | Etsy payments deposit to business checking |
| BigCommerce | Yes | Processor payouts to business account |
| eBay | Yes | Managed Payments deposits to business account |
| DTC brand (no marketplace) | Yes | Stripe/PayPal/bank deposits qualify directly |
| Amazon only (no bank account) | Conditional | Must have business checking with external deposits |
MCA vs. Shopify Capital, Amazon Lending, Stripe Capital
Platform-native capital products are convenient but come with trade-offs that MCA from an independent lender resolves:
| Factor | Platform Capital (Shopify/Amazon/Stripe) | Independent MCA |
|---|---|---|
| Eligibility | Invite-only; based on platform metrics | Any qualified business with bank statements |
| Repayment | % withheld from platform sales only | % of total bank deposits (all channels) |
| Revenue impact | Reduces effective payout per unit sold on platform | No impact on platform payout |
| Amount ceiling | Usually capped at platform-calculated limit | Based on total business revenue (all channels) |
| Availability | Conditional on platform relationship | Available as long as deposits qualify |
| Visibility to platform | Fully visible to platform | Not visible to platforms |
For sellers who rely on a single platform, platform capital may be simpler. For multi-channel sellers or those who want repayment spread across all revenue, independent MCA is typically the better structure.
Illustrative structure, not a chart of actual repayment amounts.
Funding Amounts by Revenue
| Monthly Bank Deposits | Typical MCA Range | Factor Rate |
|---|---|---|
| $10,000-$20,000 | $8,000-$28,000 | 1.22-1.38 |
| $20,000-$50,000 | $20,000-$70,000 | 1.18-1.32 |
| $50,000-$100,000 | $45,000-$140,000 | 1.15-1.28 |
| $100,000-$250,000 | $90,000-$320,000 | 1.14-1.25 |
| $250,000+ | $200,000-$500,000 | 1.12-1.22 |
Best Uses for Ecommerce Working Capital
Seasonal Ecommerce Funding Strategy
Ecommerce seasonality creates a predictable cash flow challenge: you need to buy inventory in August and September to be stocked for Q4, but your revenue from Q4 sales won't appear in your bank account until November-December. The MCA solution:
- Apply in July-August when your 6-month average reflects Q2 sales (often strong for many categories)
- Use the advance to pre-buy Q4 inventory and scale ad budgets going into October
- Q4 revenue deposits repay the advance rapidly: higher deposits mean faster holdback payoff
- After Q4, the business is debt-free and positioned to apply again for Q2 expansion
See our MCA for seasonal businesses guide for a detailed funding calendar approach.
A general pattern for holiday-heavy sellers. Actual timing varies by product category and supplier lead times.
Qualification Requirements
Ecommerce MCA vs. Traditional Bank Financing
An ecommerce seller weighing a bank/SBA loan against a merchant cash advance is weighing a lower headline cost against speed and accessibility. Here's how they compare for a seller who needs to move on an inventory or ad-spend opportunity now.
| Feature | Merchant Cash Advance (MCA) | Traditional Bank/SBA Loan |
|---|---|---|
| Approval basis | Processor deposit history (Stripe/PayPal/Shopify Payments), 500+ FICO, 6+ months in business | Credit history, financials, collateral, 2+ years in business |
| Time to funding | Fast, set by provider | 4-8+ weeks |
| Platform exclusivity | None. All channels contribute to repayment | N/A, but often requires 2+ years of tax returns across channels |
| Collateral | None. A UCC-1 is filed against future receivables | Often required (inventory lien or blanket lien) |
| Best fit | Time-sensitive inventory buys, Q4 ad-spend scaling | Established sellers who can plan months ahead for the lowest annualized cost |
Fund Your Ecommerce Business Today
Platform-agnostic. No collateral. 500 FICO minimum. Review begins as soon as your file is complete.
Check My Rate: 10 MinutesFAQ
- I sell on both Amazon and Shopify. Do both revenue streams count?
- Yes. If both deposit to the same business checking account, the combined deposits are used for the 6-month average. If they deposit to different accounts, submit all accounts. Higher combined deposits mean a larger available advance.
- My business has high revenue but thin margins. Does that affect MCA?
- MCA underwriting is based on gross deposits (revenue), not net margin. A business with $100,000/month in deposits but 5% net margin qualifies the same as one with 30% margins: the holdback is calculated from deposits, not profit. Thin-margin businesses should carefully model whether the daily holdback is sustainable given their cost structure.
- Can I use MCA to fund a product launch on Kickstarter or Indiegogo?
- MCA funds can be used for any business purpose, including pre-launch production costs. However, crowdfunding itself doesn't create the deposit history needed for MCA qualification. If you have an existing ecommerce business with qualifying deposits, you can use MCA to fund a side launch.
- How does MCA repayment work during a slow month?
- The holdback percentage is fixed, but the dollar amount deducted depends on that day's deposits. A slow month with half your normal revenue means approximately half the normal daily deduction. The advance term extends automatically; there's no penalty for taking longer to repay due to natural revenue fluctuation.