The maximum length of a business cash advance depends on the type you are applying for. Variable cash advances (MCA's) generally have a shorter repayment period compared to fixed term business cash advances.
An MCA usually has a repayment period of 2 to 12 months, thus it is ideally for the short term needs. The length of the repayment period is based on credit card receipts. For example, a lender may require that you repay 10% - 25% of your advance with your daily credit card sales and estimate this will take one year.
In comparison, fixed payments BCA's usually have a longer term from 6 to 24 months. Although the overall costs for a fix payments BCA is generally more than its counterpart, the term loan, this type of funding is easier to qualify for and will carry carry far less restrictions. The approval process for this product is also less stringent than a term loan and more flexible than an MCA. Lenders will not be looking at the business’ credit card sales. Rather, they will focus on the business’s bank statements to examine your cash flow and the business owner’s credit score. In many cases, if a business has multiple bank accounts, the lender can combine the revenue from all accounts in their analysis.
