How to Fund a Merchant Cash Advance: Create & Manage a Merchant Step by Step

To fund a merchant cash advance, you create a merchant record, enter its first cash advance terms, set the ACH schedule, and record fees and disbursements — the deal then becomes a live, repayable advance. The merchant record is the central hub for the entire ongoing relationship. In MCA Track, a merchant can be created from scratch or promoted from a funded lead, and saving the new-merchant form creates both the merchant and its first cash advance in one pass.

Key takeaways

• A merchant is the central record in MCA Track — a funded or applying business — and most merchants are born from a funded lead, with core identity and the accepted offer carrying over automatically.
• You can also create a merchant directly via Merchants then Create Merchant (or /merchants/new), which is useful for migrating an existing book or booking a deal underwritten outside the pipeline.
• The New Merchant form is a single page of eight collapsible stages; you complete each stage, click Next, then click Create to save the merchant and its first cash advance together.
• The eight stages are MIDs, Assignees, DBA Information, Contact Information, Documents, Initial Cash Advance, ACH Information, and Fees.
• A merchant can only be deleted if it has no active ACH transactions, no post-funding fees or disbursements, and no syndication payments on record.

What is a merchant record in MCA Track?

A merchant is the central record in MCA Track — a funded or applying business. Once a lead is converted, its data carries over and a first cash advance is created. The merchant page is the hub for the ongoing relationship and ties together the deal terms, repayment, documents, and contacts.

The record holds business details (DBA, legal name, EIN, MCC/SIC codes, start date, addresses, website, phones), one or more MIDs used to match payment files, contacts and owners with credit scores, the assigned sales rep and underwriter, bank accounts and ACH schedules, documents, notes and events, and the full history of advances with the current one highlighted. A DataMerch warning appears if the business is in the risk registry.

How do you create and fund a merchant step by step?

You fund a merchant by completing the eight-stage New Merchant form and clicking Create. The form is a single page of collapsible stages; you fill each one and click Next to move down. Saving creates the merchant and its first cash advance simultaneously, so the deal is live and repayable immediately.

1. MIDs. Enter the merchant ID (or IDs) used to match incoming payment files, and mark which are used for ACH.
2. Assignees. Set the ISO, sales rep, main underwriter, and funder, and assign underwriter split percentages where multiple underwriters share the deal.
3. DBA Information. Record the DBA, legal name, MCC and SIC codes, business description, federal tax ID, start date, incorporated state, and physical address.
4. Contact Information. Capture the business, cell, and fax numbers plus email and website.
5. Documents. Add files such as the signed application, bank statements, and the funding contract, each with a document type and a security level controlling who can view it.
6. Initial Cash Advance. Enter the advance amount, factor rate, payback amount, risk level, payment schedule, expected payment and duration, FICO score, position, funded-via method, and commission.
7. ACH Information. Select the funder ACH account, enter bank and routing details, enable ACH processing, and configure the recurring debit amount, frequency, and end type.
8. Fees. Record fees (such as an origination fee) and disbursements (such as the net amount funded to the merchant), then click Create to save the merchant and its first advance.

For a deeper look at the advance terms entered in stage six — factor rate, payback, schedule, and statuses — see the cluster page on MCA cash advances, terms, statuses, renewals, and reups.

What are the eight stages of the New Merchant form?

The New Merchant form groups every required detail into eight collapsible stages, completed top to bottom. The table below lists each stage and what it captures.

What can you do with a merchant after funding?

After funding, you edit details, contacts, and assigned staff at any time; post payments individually, in bulk, or by CSV; bulk-upload documents; and link to Plaid for bank verification. The merchant page also holds the full history of advances, with the current one highlighted, and a chart comparing expected versus actual repayment.

Access to all of this depends on the user’s role, which the organization’s administrator controls. See the cluster page on MCA software user roles and permissions for how create, edit, and delete rights are assigned.

Want to see the eight-stage funding flow in your own portfolio? Book a walkthrough → or return to the complete MCA servicing software guide.

Frequently asked questions