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Equipment Funding: Merchant Cash Advance

MCA for Equipment:
No Appraisal, No Equipment Collateral

Equipment loans require appraisals, 680+ FICO, and 2 to 4 weeks of approval time. MCA doesn't. If your equipment need is urgent, the deal is time-sensitive, or you don't qualify for equipment financing, MCA is reviewed by the funding provider with no equipment appraisal required.

Quick Answer

Yes: MCA proceeds can be used for any business equipment with no restrictions. Requirements: 500+ FICO, 6+ months in business, $4,000 to $6,000+/month in deposits. No equipment appraisal, no lien on the equipment, no collateral. Funding timing is set by the funding provider after review. Any equipment type covered.

Equipment Types MCA Can Fund

Commercial kitchen equipment Walk-in coolers & freezers HVAC systems Medical & dental equipment Dental chairs & imaging Construction equipment Service vans & vehicles Roofing equipment Landscaping equipment Gym & fitness equipment Salon chairs & stations Barbershop stations POS & point-of-sale systems Computer & IT equipment Manufacturing machinery CNC machines Printing equipment Auto repair equipment Tire mounting machines Ovens & bakery equipment Espresso & coffee machines Laser engraving equipment

MCA Equipment Funding Process

Step 1
Apply
One-page application + 6 consecutive months bank statements
Step 2
Review
Funding provider reviews your file; no equipment appraisal needed
Step 3
Contract
Sign the funding agreement if approved
Step 4
Funded
Cash in your business account; buy the equipment

vs. equipment financing: 2 to 4 week approval, appraisal required, equipment used as collateral, 620 to 680+ FICO minimum.

MCA vs Equipment Financing: Quick Comparison

Factor MCA Equipment Financing
Time to fundProvider-set timing2 to 4 weeks
Credit required500+ FICO620 to 680+ FICO
Equipment collateralNone requiredEquipment is collateral
Equipment conditionAny: new or usedOften new only, or appraised
Documentation6 consecutive months bank statementsTax returns, invoice, appraisal
Minimum purchaseNo minimumOften $10,000 to $25,000+
Use of fundsAny equipment, unrestrictedSpecific equipment only
CostFactor rate: 1.20 to 1.49xInterest: 6 to 20% APR
Minimum FICO score: MCA versus equipment financing MCA minimum FICO 500 or higher; equipment financing typically requires 620 to 680 or higher, on a 0 to 700 scale. MCA 500+ Equipment Financing 620 to 680+
MCA's 500+ FICO floor is well below the 620 to 680+ most equipment lenders require.

MCA Equipment Funding: Real Scenarios

Restaurant, Houston, TX
Commercial oven replacement, dead on Saturday
Double-stack commercial oven failed Saturday morning. Equipment company quoted $12,000 for a replacement. Equipment financing required 2 weeks. $18,000/month deposits, 561 FICO, 4 years. MCA funded once the provider approved the file; new oven installed shortly after.
✓ Illustrative advance: $14,000
HVAC Company, Atlanta, GA
New diagnostic and recovery equipment before summer
HVAC contractor needed manifold gauges, recovery machines, and vacuum pumps before summer AC season. Total equipment: $9,500. Amount too small for most equipment lenders ($10K minimum). $14,000/month deposits, 548 FICO, 3 years. MCA funded once the provider approved the file; equipment deployed for summer season.
✓ Illustrative advance: $11,000
Dental Practice, Phoenix, AZ
Used CBCT scanner, liquidation purchase with a short window
Practice found used CBCT (3D dental imaging) scanner at liquidation price: $28,000 (retail $85,000). Seller's window was short. Equipment financing required appraisal. $42,000/month deposits, 588 FICO, 7 years. MCA funded once the provider approved the file; scanner acquired at $57,000 below retail.
✓ Illustrative advance: $32,000
Auto Shop, Chicago, IL
Hunter alignment machine, equipment loan denied (used)
4-post lift and alignment machine from retiring shop: $22,000. Equipment financing denied because used equipment didn't meet collateral standards. $21,000/month deposits, 572 FICO, 5.5 years. MCA funded the used equipment purchase; no equipment appraisal or lien required.
✓ Illustrative advance: $24,000
Illustrative advance amounts across the four scenarios above Restaurant scenario 14,000 dollars, HVAC scenario 11,000 dollars, dental scenario 32,000 dollars, auto shop scenario 24,000 dollars, all illustrative, not guaranteed amounts. Restaurant $14,000 HVAC Company $11,000 Dental Practice $32,000 Auto Shop $24,000 Illustrative amounts from the four scenarios above, not guaranteed or typical for every business
Illustrative advance amounts across the four equipment scenarios above.

When MCA is Better Than Equipment Financing for Equipment

Used or off-market equipment
Equipment lenders typically require new equipment or a formal appraisal on used equipment. Liquidation sales, auction purchases, retiring shop buyouts, and peer-to-peer equipment deals don't fit those requirements. MCA funds any purchase, no appraisal required.
Time-sensitive deals
An auction, liquidation window, or retiring competitor's deadline won't wait 2 to 4 weeks for equipment financing approval. MCA is reviewed by the funding provider without that multi-week appraisal process.
Small equipment purchases
Most equipment lenders have a $10,000 to $25,000 minimum. A $4,000 commercial espresso machine, $7,500 salon package, or $9,500 diagnostic equipment set doesn't qualify. MCA has no minimum: the same underwriting process works for any amount above your qualifying threshold.
Credit below equipment loan floor
Equipment financing typically requires 620 to 680+ FICO. MCA qualifies at 500+ FICO. If your credit history has been damaged by medical bills, a prior business closure, or slow payments: MCA bridges the gap while you rebuild credit.
Emergency replacement
Equipment doesn't fail on a convenient schedule. A broken walk-in cooler on Friday, failed oven on Saturday, or dead HVAC in July can close your business for days or weeks. MCA funds once the provider approves your file, without the appraisal process equipment financing requires.
Equipment down payment
For large equipment ($50K+), MCA can serve as the down payment while equipment financing or an SBA loan closes. Get the equipment ordered, secured, or down-paid now: retire the MCA bridge when the equipment loan funds.

MCA for Equipment: FAQs

Can I use an MCA to buy business equipment?
Yes. MCA proceeds are unrestricted and can be used for any business equipment. No equipment appraisal, no lien on the equipment, no restriction on equipment type or condition. New, used, or refurbished equipment all qualify.
When is MCA better than equipment financing?
MCA wins when: the equipment is used or off-market; the deal is time-sensitive; your FICO is under 620; the purchase is under $25,000 (below most equipment loan minimums); or the equipment emergency can't wait 2 to 4 weeks for approval.
What are the MCA requirements for equipment purchases?
Same as any MCA: 500+ FICO, 6+ months in business, $4,000 to $6,000+/month in deposits, 0 to 2 NSFs/month. No equipment appraisal, no lien, no collateral. Apply with one page and 6 consecutive months of bank statements.
How much can I get for equipment through MCA?
MCA advance amounts are based on your revenue, not the equipment value. Typically 75% to 150% of your average monthly deposits. $20,000/month deposits may qualify for $15,000 to $30,000. For larger needs, MCA works as a down payment or bridge while equipment financing or SBA processes.
Is there a minimum or maximum equipment purchase for MCA?
No minimum equipment purchase amount. Maximum advance is based on your revenue: most businesses qualify for up to $500,000, though the average first advance is $20,000 to $80,000. Multiple funding positions (stacking) is possible for higher amounts with a proven track record.
What equipment can MCA fund?
MCA can fund any business equipment: commercial kitchen equipment, HVAC systems, medical and dental equipment, construction and trades equipment, vehicles and service vans, manufacturing machinery, salon and spa equipment, POS systems, computers and technology, fitness equipment, and more. There are no equipment-type restrictions on MCA use of funds.

Equipment Emergency or Time-Sensitive Deal?

One-page application, 6 consecutive months of business bank statements. Equipment funded once the provider approves your file. No appraisal, no equipment collateral, no restrictions on equipment type.

Apply Now → MCA vs SBA Comparison

T.A.G. Business Funding

See If Your Business Qualifies

500 FICO minimum. Bank declines OK. Revenue matters more than credit score. Decision timing is set by the funding provider after review.

Apply Now → Call 330-238-3003
✓ No obligation ✓ Soft pull to start ✓ Free to apply ✓ Bank declines welcome

500 FICO minimum  ·  $4K to $6K+/month revenue  ·  Funding timing is set by the funding provider after review

Related Resources

MCA Research Center Readiness Guide (PDF)