Merchant Cash Advance for Technology Companies
January deposits $95,000 with a big project payment. February: $45,000 during delivery phase. March: $120,000 with milestone billing. IT revenue varies with project cycles and client payments. MCA structures payments around your actual deposits so you pay more when cash flows in.
How much funding do you need?
Drag the slider or type an amount
How MCA Works for IT Companies
Merchant cash advance for technology companies uses bank deposits as the repayment mechanism. Since deposits reflect project payments and client timing, payments naturally vary with your business cycles.
Deposit-Based Repayment
MCA takes a percentage of daily deposits rather than fixed amounts. This captures project payments, recurring revenue, and all revenue as it arrives.
Project Cycle Alignment
IT revenue varies with project milestones, client payments, and contract timing. MCA payments follow this natural variation rather than ignoring it.
Factor Rate Structure
MCA uses factor rates rather than interest rates. A $100,000 advance with 1.28 factor means you repay $128,000 total. Cost is fixed regardless of timing.
Speed vs. Cost Trade-off
MCA costs more than traditional loans but provides much faster access and higher approval rates. For urgent needs or situations where other financing is unavailable, speed justifies the premium.
When Fixed Payments Do Not Fit
IT revenue varies with projects and clients. Financing should acknowledge this reality.
Project Payment Variation
Big milestone payment this month, nothing next month while delivering work. Fixed payments ignore project payment cycles.
Client Payment Timing
Enterprise clients pay when they pay. Net-45 becomes net-60. Fixed payments do not adjust for client timing variability.
Bank Declines
Your profitable IT company does not fit the bank's algorithm. Technology service companies are often misunderstood.
Speed Requirements
Contract opportunity requires immediate hiring. Project deadline requires equipment now. Banks do not operate on project timelines.
Credit Complications
Past credit challenges from prior ventures or personal situations. Strong current business performance should matter more.
New Contract Needs
Won a major contract requiring immediate investment. Need capital before the contract generates revenue.
IT Business MCA Process
From application to funding in days, not weeks.
Application
Complete online application with business information. Takes about 5 minutes.
5 minutes
Bank Statements
Upload 3-4 months of business bank statements showing deposit patterns.
Upload
Offer Review
Receive your offer with clear terms: advance amount, factor rate, and holdback percentage.
24-72 hours
Funding
Accept and receive funds deposited to your business account.
Same or next day
Capital That Matches Business Cycles
IT MCA provides working capital with repayment tied to your actual deposits. When project payments hit, you repay more. During delivery phases with lower deposits, you repay less. Capital that understands IT business cycles.
Deposit-Based Repayment
Payments calculated as percentage of deposits. Big project payment month means bigger payment when you can afford it. Delivery month means smaller payment.
Fast Access
Most IT MCA applications receive decisions within 24-72 hours. Funding deposits same or next day after acceptance.
Credit Flexibility
Your deposit history and business performance matter more than personal credit scores. Strong deposits overcome credit challenges.
High Approval Rates
IT businesses with consistent deposits and real revenue get approved at much higher rates than traditional financing.
No Collateral Required
Future deposits serve as the basis for the advance. No need to pledge equipment or personal assets.
Transparent Cost
Factor rate means you know total repayment upfront. No variable interest or compounding surprises.
IT Business MCA Applications
Situations where MCA flexibility and speed matter for technology companies.
Contract Opportunity
Won major contract requiring immediate hiring and equipment. Need capital before contract revenue arrives.
Typical funding: $50K-$200K
Project Bridge
Delivering large project with next payment 60 days out. Need cash for operations during delivery.
Typical funding: $30K-$100K
Equipment Emergency
Critical infrastructure fails. Need immediate replacement to maintain client services.
Typical funding: $15K-$75K
Talent Acquisition
Need to hire engineer immediately. Cannot wait for traditional financing timeline.
Typical funding: $40K-$120K
Growth Investment
Opportunity to scale but need capital faster than banks can provide.
Typical funding: $75K-$300K
AR Bridge
Enterprise clients slow to pay. Need working capital while waiting for payments.
Typical funding: $25K-$100K
MCA vs. Traditional IT Financing
Understanding when MCA makes sense for your IT business.
| Feature | IT MCA | Bank Term Loan | Working Capital Loan |
|---|---|---|---|
| Approval Speed | 24-72 hours | 30-60 days | 1-2 weeks |
| Approval Rate | 70-85% | 25-35% | 50-65% |
| Payment Structure | % of deposits | Fixed monthly | Fixed schedule |
| Adjusts to Revenue | ✓ | ✗ | ✗ |
| Credit Requirements | Flexible | Strict | Moderate |
| Collateral | None | Usually | Often none |
| Total Cost | Higher | Lowest | Moderate |
| Best For | Speed/flexibility | Planned needs | Moderate urgency |
IT Business MCA Requirements
MCA qualification focuses on deposit history and business performance.
Bank Deposits
Consistent deposits showing project payments and business revenue.
$25,000+ monthly deposits
Business History
Operating IT business with established client relationships.
6+ months minimum
Active Clients
Current client flow demonstrating ongoing revenue generation.
Active client base
Business Bank Account
Established business checking with deposits reflecting operations.
3+ months history
No Active Bankruptcy
Cannot be in active bankruptcy. Past discharged bankruptcy may be acceptable.
No open BK
Positive Deposit Trend
Stable or growing deposit patterns preferred. Declining trends raise concerns.
Stable or improving
MCA qualification emphasizes deposit history over personal credit. Strong, consistent deposits can overcome credit challenges.
Real Results
Velocity IT Solutions
IT Services Company, Austin TX
The Challenge
Velocity won a $350,000 annual contract but needed $85,000 immediately for hiring and infrastructure. Their bank wanted 6 weeks minimum. The client expected delivery to start in 10 days.
The Solution
We evaluated $65,000 average monthly deposits and approved $90,000 MCA with 1.26 factor rate. Daily holdback of 10% meant payments averaged $250-$350 daily.
The Result
Velocity started the project on time. Client relationship thrived. MCA repaid in 9 months. They have since used MCA for two more contract wins when speed was essential.
“The bank needed 6 weeks. The client needed us in 10 days. MCA let us say yes to a contract that is now our biggest client.”
IT Business MCA Data
Industry statistics on MCA for technology companies.
Why IT Companies Choose MCA
Strategic advantages of deposit-based financing for technology businesses.
Contract Execution
Win and execute contracts without waiting for traditional financing timelines.
No Payment Shock
Low deposit month means lower payments. Never face peak payment during delivery phases.
Credit Rebuilding
Successfully completing MCA builds track record for better financing options over time.
Simple Process
Bank statements and application. No tax returns, no collateral documentation, no lengthy underwriting.
Talent Speed
Hire engineers when you need them, not when financing arrives.
Know Your Cost
Factor rate means total cost is fixed and known upfront. Budget accurately.