At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About Matrix Advance
Matrix Advance is a Brooklyn-based MCA provider founded in 2017 that has built its entire business model around serving merchants who are managing multiple advance positions simultaneously. While most MCA companies decline applications from businesses with even one existing advance, Matrix specifically targets merchants in second, third, and even fourth position, making them one of the most aggressive stacking funders in the industry. Their underwriting algorithm maps the merchant's complete funding stack: every active funder, daily payment amount, remaining balance, estimated payoff date, and whether each position's agreement contains an anti-stacking clause. Factor rates range from 1.25 to 1.55, with the rate escalating roughly 5-8 basis points for each additional active position. A merchant in second position might see a 1.30 rate, while the same merchant in fourth position would likely receive a 1.48-1.55 rate reflecting the compounded default risk. With over $200 million funded, Matrix Advance serves a niche that other funders avoid. Their average deal size is deliberately small, ranging from $3,000 to $50,000 per position, because they believe smaller incremental advances are safer for both the funder and the merchant than large lump sums in high-position scenarios. Repayment terms are shorter than first-position funders, typically 3 to 10 months, and payments are strictly daily ACH with no weekly option. Matrix files a UCC-1 lien subordinate to all existing positions. Origination fees of 3-5% are deducted from the funded amount. The company requires at least $7,000 in monthly deposits and 6 months of operating history, but their real differentiator is willingness to fund when three or more daily ACH debits are already hitting the merchant's account. Matrix uses a proprietary dashboard that tracks all active positions in real time, alerting both the merchant and the account manager if available daily cash falls below a warning threshold.
Key Features
Multi-Position Expertise
Matrix Advance routinely funds businesses in second, third, and fourth position, using a multi-layer cash flow model that maps every active funder's daily debit amount, remaining balance, and estimated payoff date. Their underwriters calculate the combined daily burden across all positions and require a minimum daily surplus of at least $150 after the proposed Matrix payment before approving. This granular approach lets them fund scenarios that would be automatic declines at virtually every other MCA company.
Real-Time Position Monitoring
Matrix provides a proprietary merchant dashboard that displays all active MCA positions in one view, showing each funder's remaining balance, daily payment amount, estimated payoff date, and the merchant's net available daily cash. The system sends automated alerts when a position is nearing payoff, when the merchant becomes eligible for renewal, or when available daily cash drops below a configurable warning threshold. This monitoring reduces surprise defaults by flagging cash flow deterioration before payments start bouncing.
Small Advance Stacking
Matrix offers advances as low as $3,000, deliberately keeping individual position sizes small to reduce the incremental burden on the merchant's daily cash flow. Their philosophy is that a $5,000 fourth-position advance with a $45 daily payment is far more sustainable than a $25,000 advance with a $225 daily payment when the merchant already has three existing debits. This micro-stacking approach results in lower default rates on their portfolio despite the elevated risk profile of multi-position funding.
How It Works
Apply Online
Submit the application with 3 months of bank statements and details of all active MCA agreements including daily payment amounts.
Position Analysis
Matrix's underwriting team maps your complete funding stack, analyzing remaining balances, daily obligations, and net available cash flow.
Stacking Offer
Receive an offer that shows your new advance amount, factor rate, and a complete picture of your total daily payment across all positions.
Fund & Monitor
Accept the offer, receive funds within 1-2 business days, and use Matrix's dashboard to monitor all your positions in one place.
What They Do
- Stacked MCA
- Second Position MCA
- Third Position MCA
- Revenue-Based Financing
Debt Types They Take On
- Merchant Cash Advance
- Stacked Advance
- Multi-Position Funding
- Revenue-Based Financing
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Trucking Company Bridge Funding
A small trucking company in northern New Jersey with two existing MCAs (first position: $40,000 at $280/day, second position: $15,000 at $130/day) needed an additional $20,000 to cover diesel fuel costs and driver payroll while waiting on $65,000 in delayed freight invoices from a logistics broker. The company was generating approximately $3,100 in average daily deposits. Two other second-position funders declined because the existing stack was already pulling $410/day.
Nail Salon Emergency Staffing
A nail salon in Brooklyn with three existing MCA positions (combined daily ACH of $385) needed $8,000 to hire two additional nail technicians and purchase supplies for the busy holiday season. Average daily deposits were $2,200. The salon owner had been declined by six other funders who refused to consider a fourth-position advance.
Pros & Cons
Pros
- One of the only MCA providers willing to fund third and fourth positions, giving merchants with complex funding stacks a capital option when literally every other company declines their application.
- Minimum advance amounts starting at $3,000 allow merchants to take small, manageable increments rather than overextending with a large advance that could push their daily obligations past sustainable levels.
- The real-time position monitoring dashboard provides an aggregated view of all active MCA positions with remaining balances, payment schedules, and projected payoff dates, which is invaluable for merchants managing multiple funders simultaneously.
- Every application receives manual underwriting review by an experienced analyst who evaluates the complete funding stack as a whole rather than relying on automated scoring that would simply decline any multi-position scenario.
- Matrix's micro-stacking philosophy of small advances per position results in daily payment increments of $30-$75 that are less likely to cause NSF returns compared to larger advances demanding $150-$300 daily.
Cons
- Factor rates of 1.25-1.55 escalate with each position, and when combined with the cost of all existing advances, the total effective APR across the complete funding stack can easily exceed 200-300%, making this among the most expensive forms of capital available.
- Repayment terms of 3-10 months are shorter than first-position funders, which compresses the repayment into a tighter window and increases daily payment amounts relative to the advance size.
- Stacking multiple daily ACH debits creates a fragile cash flow situation where a single slow revenue week can trigger cascading NSF returns across all positions, potentially defaulting multiple MCA agreements simultaneously.
- Maximum advance of $150,000 per position and the generally small deal sizes mean Matrix is not suited for businesses with large capital requirements, and the per-deal transaction costs including origination fees make very small advances disproportionately expensive.
User Reviews (27)
ruined my cash flow
TERRIBLE. Applied for $80K, they approved less at a HIGHER rate. Then the daily debits started and my liquor store went from struggling to broke. Factor rate 1.19 is robbery. PLEASE look at other options.
won't use again
Matrix Advance was pushy from the start. Rep kept calling trying to get me to take more. I took $12K at 1.21. Already regretting it.
not bad
good
pretty good
Matrix Advance was fine. Not amazing not terrible. $30K at 1.20. Wish the rate was lower.
pleasantly surprised
I was nervous about MCAs but Matrix Advance was upfront about everything. $100K at 1.20, daily payments, total cost. No hidden stuff.
perfect timing
Needed website redesign cash and a friend told me about Matrix Advance. Applied online and Mike called me like 20 min later. Approved by end of day. Money hit next morning.
solid
My junk removal company needed hiring money and the bank said no. Matrix Advance said yes, $10K at 1.09. Angela walked me thru everything.
overpriced and slow
Wouldn't recommend Matrix Advance. Rate they quoted me was different from the contract. $60K at 1.13 when I was told it'd be lower.
predatory
ABSOLUTELY HORRIBLE. $120K from Matrix Advance has been a nightmare since day 1. The debits, the calls when you're late, the attitude. My car wash almost went under. NEVER AGAIN.
fast
Got $100K fast. Jessica was great.
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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.