At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About Alpha Capital Source
Founded in 2015 and headquartered in New York City, Alpha Capital Source is a direct MCA funder that has carved out a specific niche: multi-position merchant cash advances. The company has deployed over $200 million, with roughly 70% of its funded volume coming from second, third, and fourth position deals where the merchant already has one or more existing MCA obligations. Factor rates range from 1.25 on relatively clean second-position deals with strong daily deposits to 1.50 on high-risk third and fourth positions. Advance amounts range from $5K to $500K, though most multi-position deals land between $10K-$100K because the available cash flow after existing obligations limits the advance size. Repayment is exclusively daily ACH over 3-12 month terms. Alpha Capital Source's underwriting model is specifically designed for stacking analysis. Their team calculates the merchant's total daily ACH burden from all existing MCA positions, subtracts that from average daily deposits, and determines how much additional daily payment the business can sustain. Their internal threshold is that total combined daily MCA payments (all positions including the proposed new advance) should not exceed 30-35% of average daily deposits, which is more aggressive than most funders that cap at 20-25%. This higher tolerance is what allows Alpha to fund deals that competitors decline, but it also means that merchants funded by Alpha are closer to their cash flow ceiling, leaving less margin for error during slow revenue periods. Alpha files UCC-1 liens (subordinate to existing positions), requires personal guarantees, and operates an active ISO channel paying 8-14 points on funded deals. The company does not offer repayment restructuring; their default remedy includes demand letters, ACH re-initiation attempts, and pursuit of confession of judgment where enforceable. Alpha serves a necessary but expensive segment of the MCA market. Multi-position funding exists because businesses sometimes do need additional capital while still repaying existing advances. Alpha's expertise in evaluating stacked deals reduces the risk of catastrophic over-extension that occurs when less experienced funders pile on positions without properly assessing total payment burden. Factor rates of 1.25-1.48 on stacked deals are expensive, though, and the compounding effect of multiple daily payments can quickly push total ACH burden past sustainable levels. Any business considering a second or third position advance through Alpha should calculate their total daily payment burden as a percentage of average daily deposits; if it exceeds 30%, proceed with extreme caution.
Key Features
Multi-Position Expertise
Roughly 70% of Alpha Capital Source's funded volume is second, third, or fourth position deals. Their entire operation, from underwriting models to collections procedures, is designed for the specific risk profile of stacked advances. They understand the MCA stacking ecosystem in a way that first-position-only funders do not, including how to evaluate when a merchant is approaching their cash flow ceiling and when there is still room for additional capital. This specialization makes them a go-to funder for ISOs whose deals have been declined by funders that avoid stacking.
Stacking-Friendly Underwriting
Alpha's underwriting model starts by calculating the merchant's total existing daily ACH burden from all current MCA positions, then compares it against average daily deposits. Their internal threshold allows total combined daily payments (all positions) up to 30-35% of average daily deposits, which is more aggressive than the 20-25% cap used by most funders. They also look at how far the existing advances are through their repayment cycle: a merchant who is 70% through repayment on their first advance is evaluated differently than one who is only 30% through.
Fast Turnaround on Complex Deals
Despite the additional complexity of analyzing multiple existing positions, Alpha delivers approval decisions within 3-5 hours. This speed comes from their dedicated multi-position underwriting team that specializes in stacking analysis full-time rather than evaluating a mix of first-position and multi-position deals. They require copies of all existing MCA contracts upfront, which allows them to build the complete payment-burden picture immediately. Funding occurs within 24 hours of signed contracts.
ISO Partnership Program
Alpha pays 8-14 points on funded multi-position deals, with higher commissions on larger advances and cleaner risk profiles. They have built a reputation among ISOs as the funder to send deals to after first-position funders have declined. Their broker portal accepts deal submissions with existing MCA contract documentation, and their sales team is responsive to questions about deal structure and stacking feasibility. They also offer renewal commissions when funded merchants come back for subsequent advances.
How It Works
Submit Application & Statements
Complete the application and provide 3 months of bank statements along with any existing MCA contracts for position analysis.
Position & Cash Flow Analysis
Alpha's team evaluates your current advance obligations, daily payment burden, and remaining cash flow to determine a sustainable additional advance.
Receive Multi-Position Offer
Get an offer that accounts for your existing obligations, showing the additional advance amount, factor rate, and adjusted daily payment.
Fund & Stack
Accept the offer and receive additional capital deposited to your account, typically within 24 hours of contract execution.
What They Do
- Merchant Cash Advance
- Multi-Position Advances
- Revenue-Based Financing
- Stacking Advances
Debt Types They Take On
- Merchant Cash Advance
- Second-Position Advance
- Third-Position Advance
- Revenue-Based Financing
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Construction Subcontractor Payroll Bridge — $60K Second Position
A drywall subcontractor in San Diego, CA with 18 employees had an existing first-position MCA with \$100K funded and \$62K remaining, with daily payments of \$520. The general contractor on their largest project delayed a \$140K progress payment by 3 weeks due to an inspection hold. The subcontractor needed \$60K within 48 hours to cover two payroll cycles (\$52K) plus material costs. Monthly deposits averaged \$95K, and the existing \$520/day payment consumed about 11% of daily deposits.
Food Truck Third-Position Emergency — $25K
A food truck operator in Houston, TX had two existing MCAs: a first position with \$180/day remaining and a second position at \$120/day, totaling \$300/day in existing MCA payments. Average daily deposits were \$1,400. The truck's engine blew and needed a \$22K replacement. Without the truck, the business had zero revenue.
Pros & Cons
Pros
- The only MCA funder in this batch that actively markets fourth-position deals, giving businesses with multiple existing advances a capital source that most funders refuse to touch.
- Stacking-specific underwriting with a 30-35% daily-burden threshold is more accommodating than the 20-25% cap used by most multi-position funders, allowing more businesses to qualify for additional capital.
- Approval turnaround of 3-5 hours on complex multi-position deals is fast given the additional analysis required to evaluate stacked obligations, and funding consistently occurs within 24 hours.
- ISO commissions of 8-14 points on multi-position deals are competitive and have made Alpha a preferred referral destination for brokers whose deals are declined by first-position funders.
- Advance amounts up to \$500K on multi-position deals are higher than most stacking specialists, which are often capped at \$100K-\$250K for subordinate positions.
Cons
- Factor rates of 1.25-1.50 are among the highest in the MCA industry, with the effective APR on a short-term third-position advance potentially exceeding 200%, making these some of the most expensive capital available to small businesses.
- Daily ACH-only repayment with no weekly option and no restructuring means there is no relief valve if the business hits a slow period; missed payments trigger immediate collections escalation.
- Stacking multiple MCAs to 30-35% of daily deposits leaves very little margin for revenue fluctuations, and a 15-20% decline in daily sales can push the business into an unsustainable payment cycle.
- Alpha does not fund in all 50 states (44 states only), and some of the excluded states have active small-business-owner populations, particularly in certain agricultural and energy states.
User Reviews (29)
expected more
Used Alpha Capital Source for expansion. $250K funded in a few days. Not the cheapest not the worst. Just kinda fine?
disappointed
not worth it
got me out of a jam
Finally a company that doesn't jerk you around. $25K for my pet store, done in 2 days.
recommended
Applied Monday got funded Wednesday. $18K for supplies. Maria answered all my questions. Factor rate 1.24 isn't cheap but it's fair for the speed.
few hiccups but ok
If you need money fast they deliver. $50K at 1.27. Just know the rate is what it is.
solid
I was nervous about MCAs but Alpha Capital Source was upfront about everything. $30K at 1.22, daily payments, total cost. No hidden stuff.
happy with it
I run a restaurant and we needed rent money fast. Alpha Capital Source delivered. $200,000 at 1.27.
A+
My real estate office needed security cameras money and the bank said no. Alpha Capital Source said yes, $60K at 1.11. Sonia walked me thru everything.
mediocre
Got $75K from Alpha Capital Source. Factor rate 1.35 which is on the higher side. Funding was slower than promised.
very happy
Shoutout to Sarah for making this painless.
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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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