At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About Spartan Capital
Founded in 2016 and headquartered in New York City, Spartan Capital is a direct MCA funder that has deployed over $350 million by deliberately operating in the high-risk segment of the merchant cash advance market. Where most funders draw hard lines at NSF activity, negative daily balances, or tax liens, Spartan's underwriting model is designed to find fundable deals within these challenged profiles. Factor rates range from 1.25 on their cleanest approvals to 1.50 on high-risk deals with significant banking blemishes, and advance amounts span $5K to $400K over 3-12 month terms with daily ACH repayment exclusively. The company tolerates up to 8-10 negative-balance days per month (most funders cap at 3-5), will fund businesses with active state tax liens under $25K, and does not require a minimum FICO score. Spartan's willingness to fund challenged merchants comes with commensurate pricing and risk management. Their origination fees of 2-5% are deducted from the advance proceeds (so a $100K advance at 3% origination delivers $97K to the merchant), and daily ACH payments are calibrated to 15-20% of average daily deposits, which is on the aggressive side for first-position funding. The company requires personal guarantees from all owners with 15%+ equity (a lower threshold than many funders that set it at 20-25%), and they file UCC-1 blanket liens. Spartan is also known in the ISO community as one of the fastest funders for challenged deals, paying broker commissions of 10-15 points, which are higher than industry average to compensate brokers for the additional work involved in packaging high-risk submissions. The higher commissions also mean higher all-in costs to the merchant. Spartan does not offer payment restructuring; their default protocol is aggressive, including ACH re-initiation, demand letters, and confession of judgment enforcement where available. Spartan provides a necessary function in the MCA ecosystem: funding businesses that have nowhere else to turn. The pricing reflects that. Factor rates of 1.25-1.50, origination fees of 2-5%, aggressive daily ACH calibration at 15-20% of deposits, and no restructuring option create a product that can be financially punishing for businesses that do not recover quickly. Before signing with Spartan, calculate the total cost of capital and compare it against the specific revenue or savings the advance will generate. If the ROI does not clearly exceed the financing cost, this is the wrong product. Spartan works for businesses with a clear, time-sensitive opportunity. It does not work for businesses covering chronic operating losses.
Key Features
High-Risk Tolerance
Spartan Capital funds businesses that other MCA companies decline, tolerating up to 8-10 negative-balance days per month (vs. the industry standard of 3-5), active state tax liens under \$25K, frequent NSF activity, and even businesses that have defaulted on prior MCAs if the current revenue trajectory is positive. They do not set a minimum FICO score. The key metric they care about is whether the business has consistent daily deposits that support the proposed repayment amount, regardless of what else is happening on the bank statements.
Revenue-Focused Underwriting
Spartan's underwriting model weight is roughly 70% cash flow analysis and 30% everything else. They look at deposit consistency, average daily balance trends over the 90-day statement period, the ratio of deposits to withdrawals, and revenue trajectory (growing, stable, or declining). A business with a 480 credit score, 6 NSFs in the past month, and a \$15K state tax lien can still get approved if daily deposits average \$2K+ with 18+ deposit days per month. This approach finds fundable deals that credit-score-driven models miss entirely.
Same-Day Decisions
Despite evaluating higher-risk profiles that require careful analysis, Spartan delivers same-day approval decisions on most applications. Their underwriting team is experienced with the specific risk factors present in challenged merchant files and can evaluate them quickly without the extended deliberation that generalist underwriting teams require. Applications submitted with complete documentation before noon Eastern typically have decisions by end of business day. Funding follows within 24 hours of signed contracts.
Broker-Friendly Operations
Spartan pays ISO commissions of 10-15 points on funded deals, which is higher than the 6-12 point range typical of the MCA industry. The premium compensates brokers for the additional work involved in packaging high-risk submissions, which often require explanatory notes about banking blemishes, tax situations, or prior MCA defaults. Spartan's broker support team is known for responsiveness and willingness to provide pre-submission guidance on whether a deal has a realistic chance of approval. They also offer expedited processing for high-volume ISOs.
How It Works
Submit Application
Complete the application and provide 3 months of bank statements. Include any context about existing obligations or challenging banking history.
Aggressive Underwriting
Spartan's team reviews your daily deposits, cash flow patterns, and revenue consistency, looking for funding opportunities others may miss.
Receive Offer
Get a straightforward offer with factor rate, advance amount, total repayment, and daily payment amount clearly stated.
Fund Quickly
Sign electronically and receive funds deposited to your business bank account, typically within 24 hours of acceptance.
What They Do
- Merchant Cash Advance
- Revenue-Based Financing
- High-Risk Business Funding
- Multi-Position Advances
Debt Types They Take On
- Merchant Cash Advance
- Revenue-Based Financing
- High-Risk Working Capital
- Multi-Position Advance
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Tow Truck Company with NSF History and Tax Lien — $75K
A 6-truck towing company in Detroit, MI had been declined by three MCA funders due to 7 NSF occurrences in the past 60 days and a \$12K Michigan state tax lien. The owner's personal credit was 510. However, the company held two municipal towing contracts (police and city impound) that generated steady daily deposits of \$1,800-\$2,500, and the business had been operating for 9 years. The owner needed \$75K to purchase a heavy-duty wrecker and to pay off the tax lien.
Laundromat with Prior MCA Default — $40K
A laundromat owner in Baltimore, MD had defaulted on a \$30K MCA 8 months earlier when a water main break forced a 6-week closure. The prior funder had obtained a confession of judgment but the business was now back to full operations with daily deposits of \$800-\$1,100 from coin machines and wash-dry-fold services. The owner needed \$40K to replace 4 aging commercial washers that were breaking down weekly.
Pros & Cons
Pros
- Funds businesses that virtually all other MCA companies decline, including those with frequent NSF activity, negative daily balances, active tax liens, and even prior MCA defaults, providing a genuine last-resort capital source.
- Revenue-focused underwriting with 70% weight on cash flow analysis means a business with a 480 credit score and banking blemishes can still qualify if daily deposit patterns are consistent and sufficient.
- Same-day approval decisions on most applications despite the additional complexity of evaluating challenged profiles, with funding within 24 hours of signed contracts.
- Higher-than-average ISO commissions of 10-15 points attract broker attention and ensure that high-risk deals get submitted to Spartan rather than dying on the ISO's desk after other funders decline.
- Personal guarantee threshold of 15% equity is lower than many competitors (20-25%), which means sole proprietors and majority owners can access funding without bringing in minority partners as co-guarantors.
Cons
- Factor rates of 1.25-1.50 produce effective APRs that can exceed 150-250% on short-term deals, making Spartan Capital one of the most expensive capital sources available to small businesses.
- Daily ACH-only repayment with no weekly option and zero restructuring flexibility means businesses have no relief if revenue drops; missed payments trigger aggressive collections including confession of judgment enforcement.
- Available in only 42 states, excluding several states with strong small business protections (specific excluded states are not published and may change), limiting geographic accessibility.
- The higher broker commissions (10-15 points) mean that a significant portion of the cost to the merchant is going to the intermediary, not to the capital itself; businesses who can qualify with any other funder should explore those options first.
User Reviews (26)
fair deal
zero complaints
horrible
Predatory. Spartan Capital charged me 1.17 on $45K which converts to criminal APR. When business slowed down they threatened legal action within 48 hrs. Sharks.
meh at best
Daily debits from Spartan Capital are killing my cash flow. Took $40K for my barbershop and now I'm struggling more than before.
pretty good
Spartan Capital is decent. Got $18K for equipment. Only gripe is you can't adjust payment amounts during slow months.
straight up
zero complaints
meh
Got $10K from Spartan Capital. Factor rate 1.22 which is on the higher side. Funding was slower than promised.
would consider again
Good experience. $80K at 1.28. My hardware store needed capital and they came through. Rate is a bit high for my revenue though.
eh
Not bad not good. $12K for signage. It is what it is I guess.
reliable
worked for us
5 stars
They do what they say. $12K funded quick.
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Related Companies
Important Merchant Cash Advance Disclaimers
- A merchant cash advance is not a loan. It is a purchase of future receivables at a discount. Factor rates, not APRs, are used to express the cost of capital. Effective APRs on merchant cash advances can range from 40% to over 350% depending on the term and factor rate.
- Repayment is typically collected daily or weekly via automatic ACH debits or a percentage of credit card sales. This means your repayment amount fluctuates with revenue but withdrawals occur every business day, which can strain cash flow during slow periods.
- Most MCA agreements require a personal guarantee from the business owner. In the event of default, the MCA provider may pursue the owner's personal assets, including bank accounts and property.
- MCA providers commonly file UCC-1 liens against your business assets. This lien may prevent you from obtaining additional financing until the advance is fully repaid and the lien is released.
- Merchant cash advances are not regulated by federal lending laws such as the Truth in Lending Act (TILA). State regulations vary widely, and some states have limited consumer protections for MCA products.
- Stacking multiple merchant cash advances (taking a second advance before the first is repaid) significantly increases the risk of default and can lead to aggressive collection actions including confessions of judgment in some jurisdictions.
- Zogby does not provide merchant cash advances or business financing. We are an independent comparison service. We do not fund advances, process applications, or guarantee approval on your behalf.
This page is informational, not financial or legal advice. Talk to a qualified professional before making any big money decisions.
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