- 17% of small employers regularly used MCAs in 2025, identical to the 2017 survey.
- 2Only 48% of MCA applicants were fully approved in 2025.
- 312% applied for an MCA, against 43% for a business line of credit.
The Federal Reserve's 2025 survey of small businesses with fewer than 500 employees found that 7% regularly used merchant cash advances. That matches the share reported in the same survey in 2017.
Flat over eight years
News coverage has suggested the MCA product grew substantially over that period, but survey respondents indicate little has changed. The 2025 figures appear in the Fed's 2026 report on employer firms, and the 2017 figures in the 2017 report.
Approval rates
MCA applicants fared worse than those seeking many alternatives. In 2025, 71% of respondents who applied for an auto or equipment loan were fully approved, and 55% were for a mortgage. Only 48% were fully approved for an MCA. Business lines of credit came in just below, at 45%.
Who applies for what
Respondents were also more likely to apply for other products. In 2025, 43% applied for a business line of credit, 32% for a business loan and 20% for an SBA loan, compared with 12% for an MCA.
On how borrowers choose, the Fed report said large and small bank applicants picked lenders based on existing relationships, while online lender applicants prioritized speed and their expected chance of being funded.
Source reporting: deBanked.
