At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About Torro
Torro is a New York-based merchant cash advance provider founded in 2016 that specializes in funding newer businesses with limited operating history. While the majority of MCA companies require at least 12 months in business and $10,000 or more in monthly revenue, Torro has built its entire underwriting model around evaluating businesses with as little as six months of operations and monthly deposits as low as $8,000. Their proprietary scoring algorithm places heavy weight on deposit consistency and upward revenue trends rather than time-in-business alone, which means a 7-month-old restaurant showing steady weekly growth can score higher than a 3-year-old business with erratic deposits. Factor rates for first-time borrowers typically range from 1.25 to 1.45, with the lower end reserved for applicants showing at least 90 days of consistent deposits above $10,000 per month. Torro files a UCC-1 blanket lien on all business assets for every advance, and their standard agreement includes a personal guarantee from the primary business owner. The company has funded over $500 million to thousands of small businesses across 48 states, with a particular concentration in retail, food service, e-commerce, and mobile service verticals. Torro's renewal program is one of their strongest selling points: merchants who repay at least 60% of their first advance without any returned ACH payments typically qualify for a renewal at factor rates 5-10 basis points lower and advance amounts 15-25% higher. Daily holdback percentages range from 10% to 18% of average daily deposits depending on the risk tier. Repayment terms run 4 to 15 months, with shorter terms carrying lower factor rates. Torro does not offer early payoff discounts on their standard product, meaning the full purchase price is owed regardless of repayment speed. Their stacking policy is strict: they do not permit second-position advances from other funders while a Torro advance is active, and violation of this clause can trigger a default event under their standard agreement.
Key Features
New Business Friendly
Torro considers businesses with as little as 6 months of operating history, which is roughly half the industry standard minimum. Their underwriting algorithm compensates for the short track record by analyzing deposit frequency, average daily balance trends, and the ratio of deposits to withdrawals over the most recent 90-day window. This approach means a newer business with strong, consistent deposits can receive approval where funders relying purely on time-in-business metrics would decline.
Fast Application Process
The online application takes under 10 minutes and requires only three months of business bank statements in PDF format. Torro's automated pre-screening delivers a preliminary decision within 2-4 hours during business days, and final approval with a signed offer can be completed same-day. Funded amounts are typically deposited via ACH by the next business morning, with a small percentage of deals qualifying for same-day wire transfer at no additional charge.
Renewal Program
Merchants who repay at least 60% of their outstanding advance balance with zero returned ACH payments become eligible for renewal funding. Renewal offers typically feature factor rates 5-10 basis points lower than the original advance and advance amounts 15-25% higher. Some merchants on their third or fourth renewal with Torro report factor rates in the 1.15-1.20 range, which approaches the pricing of more established first-position funders.
Flexible Revenue Requirements
Torro accepts businesses generating as little as $8,000 in monthly gross deposits, compared to the $10,000-$15,000 minimum required by most competitors. They also evaluate net deposits rather than gross, meaning they subtract internal transfers and loan proceeds to arrive at organic revenue. This honest evaluation method prevents businesses from being approved for more capital than their real revenue can support, reducing the risk of default for both parties.
How It Works
Complete Application
Fill out the brief online application and provide 3 months of recent business bank statements for review.
Quick Evaluation
Torro's underwriting team reviews your revenue patterns and business health, typically delivering a decision within 4 hours.
Review Your Offer
Receive a clear offer outlining your advance amount, factor rate, total repayment, and daily or weekly payment schedule.
Get Funded
Accept the offer electronically and receive funds deposited into your business account within 1-2 business days.
What They Do
- Merchant Cash Advance
- Revenue-Based Financing
- Working Capital
Debt Types They Take On
- Merchant Cash Advance
- Revenue-Based Financing
- Short-Term Working Capital
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
New Coffee Shop Inventory
A specialty coffee shop in Portland, OR that had been open for only 8 months needed $25,000 to purchase a bulk green coffee bean order at a 20% volume discount from their importer. The shop was generating $14,000 in monthly deposits with consistent daily credit card sales averaging $450. Two other MCA funders declined due to the business being under 12 months old.
E-Commerce Startup Marketing Push
An online women's boutique with 7 months of Shopify sales history needed $15,000 for a paid social media campaign ahead of the holiday season. Monthly revenue had grown from $8,500 to $12,000 over the previous 3 months, but two other MCA providers declined because the business had less than one year of operating history and no physical storefront.
Pros & Cons
Pros
- Accepts businesses with as little as 6 months of operating history, which is roughly half the industry standard and opens doors for thousands of newer businesses that would be automatically declined elsewhere.
- Monthly revenue threshold of $8,000 is significantly lower than the $10,000-$15,000 minimums imposed by most MCA providers, making Torro accessible to smaller storefronts and early-stage e-commerce brands.
- Preliminary decisions are delivered within 2-4 hours during business days, and funding typically hits the merchant's bank account by the next business morning, which is critical for time-sensitive opportunities.
- The renewal program rewards clean repayment history with factor rate reductions of 5-10 basis points and advance amount increases of 15-25%, creating a meaningful incentive for merchants to maintain good standing.
- Torro's underwriting model evaluates deposit trend trajectories rather than just averages, meaning businesses with growing revenue can qualify even if their absolute numbers are modest.
Cons
- First-time borrowers with less than 9 months of history typically receive factor rates in the 1.30-1.45 range, which translates to effective APRs of 60-120% depending on term length, making the cost of capital substantially higher than what established businesses pay.
- Maximum advance amount of $400,000 is lower than competitors like OnDeck or Rapid Finance that offer up to $750K-$1M, which may not serve capital-intensive industries like construction or manufacturing.
- Torro files a UCC-1 blanket lien on all business assets and prohibits stacking with other funders, which restricts the merchant's ability to obtain additional financing until the advance is fully repaid and the lien released.
- No early payoff discount is available on standard advances, meaning the full factor rate cost is owed regardless of how quickly the merchant repays, which eliminates any financial incentive for accelerated repayment.
User Reviews (23)
take it or leave it
they were ok
whatever
they were ok
eh
I mean it worked. Got funded. Paying it back. Factor rate 1.11 on $12,000 hurts when you do the math.
criminal
I wish I could give ZERO stars. Torro promised fast easy funding and delivered fast expensive MISERY. $75K for my catering company. When I asked about adjusting payments they said too bad.
finally someone who delivers
Honestly my best MCA experience. $40K at 1.11. Bianca handled everything and I had money in 2 days.
not worth it
waste of time
exactly as advertised
Just got my second advance from them. Rate dropped from last time. Torro is solid.
better than expected
Needed bridge funding cash and a friend told me about Torro. Applied online and Monique called me like 20 min later. Approved by end of day. Money hit next morning.
could be better
Used Torro for AC unit. $8K funded in a few days. Not the cheapest not the worst. Just kinda fine?
reliable
zero complaints
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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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We make money from some companies on this page. That doesn't change our rankings -- the editorial team scores every product independently, and the business side has no say in what we recommend.