Estimate Your MCA Options
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600 Credit Score
A credit score of 600 is considered "fair" by most Canadian lenders. While you won't qualify for the lowest rates, many lenders actively work with this credit tier. Your approval odds improve significantly with stable income, low existing debt, and employment history. A co-signer or collateral can unlock better terms.
What This Means for You
With a 600 credit score, you're in a transitional zone — above the "bad credit" threshold but below the "good" tier where the best rates live. This means you have options, but strategy matters enormously. Most Big Five banks will consider applicants at 600, but their auto-approval systems often flag scores below 650, meaning your application may require manual underwriting. This isn't necessarily bad — it means a human reviews your full picture. Alternative lenders and credit unions are often your best bet at this credit level. Credit unions evaluate members more holistically, considering banking history and relationship length. Alternative online lenders have built models specifically for the 580–650 range, offering faster approvals than banks with rates that, while higher than prime, are significantly better than bad-credit lender rates. Your income stability is your biggest lever. A borrower with a 600 score and 3+ years of stable full-time employment will get significantly better terms than someone with the same score and recent job changes.
Your Action Plan
- 1Pull your free credit report from Equifax and TransUnion — check for errors that could be dragging down your score
- 2Pay down credit card balances below 30% utilization before applying — this alone can boost your score 20–40 points in 30 days
- 3Gather 3 months of bank statements and your 2 most recent pay stubs — lenders at this tier want to see income stability
- 4Apply to a credit union where you have an existing relationship first — they often offer the best terms for 600-range scores
- 5Consider a co-signer with good credit — this can move you from 'fair' tier rates (14–20%) to 'good' tier rates (9–14%)
- 6If you're self-employed, prepare your last 2 years of tax returns and 6 months of business bank statements
- 7Don't apply to more than 3 lenders within a 14-day window — multiple inquiries beyond this can further impact your score
Common Questions — 600 Credit Score
A merchant cash advance (MCA) provides upfront capital repaid through a percentage of your daily credit card or debit sales. It's one of the fastest ways for businesses to access capital — often within 48 hours — and approval is based on your sales volume rather than personal credit.
How It Works
Share your sales data
Monthly card/debit revenue is the key input — that's what determines your advance size.
Quick business profile
Industry, time in business, and desired amount. Under 2 minutes.
See your MCA estimate
Estimated advance amount, factor rate, and daily holdback percentage.
Get funded fast
MCA providers can fund within 48 hours — among the fastest options available.
MCA Qualification Factors
Monthly revenue is the primary qualification factor — not personal credit
Businesses processing $10,000+/month in card sales typically qualify
Time in business: most MCA providers require 6+ months of operation
Industry type affects approval — retail and food service have high approval rates
No collateral required — funding is based on future sales
Estimated Rate Bands
| Credit Tier | Estimated Rate Range | Approval Likelihood |
|---|---|---|
| High Revenue ($50K+/mo) | Factor rate 1.1 – 1.25 | Very High |
| Medium Revenue ($20-50K/mo) | Factor rate 1.2 – 1.35 | High |
| Lower Revenue ($10-20K/mo) | Factor rate 1.3 – 1.45 | Moderate |
* Rates are estimates based on typical lender criteria. Canada's 35% APR Criminal Code cap (in force January 1, 2025) applies to consumer credit agreements; loans to incorporated businesses are commercial agreements and may exceed this rate. Your actual rate may vary. These are not offers.
When an MCA Makes Sense
MCAs work best for businesses with consistent daily sales — restaurants, retail, and service businesses.
Compare the total cost of capital, not just the factor rate, against a traditional business loan.
Use MCA for short-term needs; for larger, longer-term financing, a business term loan may be more cost-effective.
Frequently Asked Questions
Why Trust LoanIQ
Revenue-based — no fixed monthly payments
Funding in as little as 48 hours
No collateral required
Repayment adjusts with your sales volume
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Estimate Your MCA Options
Quick estimate based on your revenue. No obligation.