How Gravity Payments Business Funding Really Works

By Jordan Lee, merchant-financing documentation editor with nine years reviewing payment-support materials (editorial persona)
Last reviewed: July 12, 2026

Gravity Capital is not presented as a conventional term loan. Gravity Payments purchases an agreed amount of a business’s future receivables, then applies a fixed percentage of daily card sales toward the repayment balance before sending the remaining deposit to the merchant. (gravitypayments.com)

This independent guide is not operated by Gravity Payments and cannot approve funding, quote an account or modify a financing agreement.

What is Gravity Capital?

Gravity Capital is sales-based business financing offered through Gravity Payments. Its current page describes a fixed funding amount, a financing fee, a total payback amount and a holdback percentage collected from future credit-card sales. Gravity’s own educational article identifies this structure as a merchant cash advance, commonly shortened to MCA. (gravitypayments.com)

The agreement is called a future purchase of receivables agreement, according to the current FAQ. Rather than charging compounding interest against a declining loan balance, Gravity establishes a fixed dollar amount the business agrees to deliver from future sales. (gravitypayments.com)

That label does not make the cost small. It changes how the cost is calculated.

How much funding may be available?

Gravity says the amount depends on monthly revenue and card-processing volume. Its current rule of thumb is approximately one to two times monthly sales, but underwriting can produce an amount, rate or holdback outside the range displayed by its online estimator. (gravitypayments.com)

The estimator is educational. It is not an approval.

Gravity does not publish a universal minimum or maximum funding amount on the current page. The business must complete an application to receive account-specific options.

Application documents are described two ways

Gravity’s current page contains a documentation inconsistency.

In the four-step application section, it tells applicants to provide their most recent three months of bank and credit-card processing statements. The FAQ farther down says the standard requirement is a signed application and four months of bank statements. Both sections say a request of $85,000 or more requires the prior year’s business tax filing. (gravitypayments.com)

Current-page statement	Published requirement
Main application section	Three months of bank and processing statements
FAQ section	Signed application and four months of bank statements
Request of $85,000 or more	Previous year’s corporate tax filing
Underwriting follow-up	Additional documents may be requested

Prepare four months of bank statements and recent processing records unless the representative gives narrower instructions. Skip sending financial documents to a link received from an unexpected caller; begin from Gravity’s published Capital page.

An older Gravity working-capital sheet used different thresholds, including six months of processing history and additional financial statements for requests of $50,000 or more. That document dates from 2020 and should not replace the current $85,000 requirement shown on Gravity’s live page.

How the daily holdback changes deposits

Gravity automatically collects the agreed percentage from daily card sales before sending the rest of the processing deposit to the business. Busy days produce larger payments, slower days produce smaller payments, and a day without card sales produces no sales-based payment in Gravity’s sample schedule. (gravitypayments.com)

Suppose the holdback is 10%:

• $500 in card sales sends $50 toward the balance.
• $1,400 in card sales sends $140 toward the balance.
• $0 in card sales produces no percentage-based payment that day.

Those examples explain cash flow, but they do not establish the holdback offered to a particular applicant.

This deduction also affects reconciliation. A merchant processing $10,000 in card sales will not receive the full $10,000 as bank deposits when a Capital holdback, ordinary processing costs and refunds apply.

Factor rate versus interest rate

Gravity’s current example offers a business $10,000 under three possible structures:

Funding	Financing fee	Total payback	Holdback	Implied factor
$10,000	$2,000	$12,000	10%	1.20
$10,000	$2,200	$12,200	8%	1.22
$10,000	$2,300	$12,300	6%	1.23

Source: Gravity Capital’s current educational example. The implied factors are calculated by dividing total payback by funding received. (gravitypayments.com)

The lower holdback in this example carries the larger fixed fee. A 6% deduction may put less pressure on each daily deposit, but the business agrees to deliver $300 more overall than under the 10% option.

A factor rate cannot be compared directly with an annual percentage rate unless the expected repayment duration is known. The same $2,000 fee produces a much higher annualized cost when repaid in four months than when repaid over twelve.

Gravity’s MCA article acknowledges that annualized costs can be high and says the total fixed cost does not fall merely because the advance is repaid faster. (gravitypayments.com)

How quickly does Gravity Capital fund?

The current page gives several timelines.

One section says accepted funding may reach the account in three to five business days. The process description says money can arrive in as little as 48 hours, while the FAQ says funds are expected within 48 hours after the future receivables agreement is signed. (gravitypayments.com)

These statements are not identical. The safest expectation is that 48 hours describes a best-case period after acceptance and signing, while three to five business days is the broader published range.

Missing documents, underwriting questions, bank processing and the signing date may extend the process. Do not commit funding to a time-sensitive purchase until the deposit has actually posted.

Early repayment may not reduce the financing fee

Gravity says a business may make an additional payment or satisfy the balance early without an early-repayment fee. (gravitypayments.com)

That does not necessarily mean early payoff reduces the agreed total payback.

Because the financing uses a fixed fee rather than accruing interest, Gravity’s MCA explanation says faster repayment can raise the effective annualized cost. A business that receives $10,000 and agrees to deliver $12,000 generally owes that fixed amount regardless of whether sales complete the repayment quickly. (gravitypayments.com)

Check the actual agreement for any early-payment discount. The public page confirms that additional payments are allowed, but it does not promise a reduction of the fixed financing fee.

Credit checks and overlapping financing

Gravity says its application uses a soft credit check that does not affect the applicant’s credit score. It also says an existing short-term financing arrangement does not automatically prevent the business from qualifying for Gravity Capital. (gravitypayments.com)

Qualification is only part of the issue. Two sales-based obligations can divert a substantial portion of daily revenue before rent, payroll, inventory and taxes are paid.

The Federal Trade Commission has brought enforcement actions against unrelated MCA providers accused of misrepresenting funding amounts, costs, personal guarantees and collection terms. The FTC advises financing companies to disclose material obligations accurately. Gravity was not the target of those cited actions, but the cases show why the signed agreement deserves more weight than a promotional calculator. (ftc.gov)

Before signing, identify:

• The amount deposited to the business
• The fixed financing fee
• The total receivables purchased
• The daily holdback percentage
• Any personal guarantee
• Reconciliation rights when sales decline
• Default events and collection rights
• Whether additional financing requires consent

What happens when sales stop?

Gravity says businesses that close temporarily should contact its Capital team to develop a plan. The current page does not publish a standard pause length, automatic reduction formula or universal hardship arrangement. (gravitypayments.com)

A lower sales day naturally creates a smaller percentage deduction. A temporary closure, processor change or complete business shutdown may involve obligations beyond the normal holdback mechanism.

Contact Gravity before redirecting processing or allowing the account to remain inactive. The future receivables agreement, not the website example, controls what happens next.

FAQ

Is Gravity Capital a business loan?

Gravity says it is not a traditional loan. It is structured as a purchase of future receivables with a fixed total payback. (gravitypayments.com)

How much can a business request?

Gravity gives a rule of thumb of one to two times monthly sales. The approved amount depends on underwriting, processing volume and business revenue. (gravitypayments.com)

Does applying affect personal credit?

Gravity says it performs a soft credit check that does not affect the applicant’s credit score. (gravitypayments.com)

How are payments collected?

An agreed percentage of daily credit-card sales is applied to the outstanding balance before the remainder of the processing deposit reaches the merchant’s bank account. (gravitypayments.com)

Can Gravity Capital be repaid early?

Yes. Gravity says additional payments and early payoff are allowed without an early-repayment fee. The public page does not promise that early payoff reduces the fixed financing fee. (gravitypayments.com)

How long does funding take?

Gravity publishes both an as-little-as-48-hours statement and a broader three-to-five-business-day timeframe. Document review and bank timing can affect the actual deposit date. (gravitypayments.com)

What documents are required?

The current page inconsistently requests three months of bank and processing statements in one section and four months of bank statements in another. Requests of at least $85,000 also require the previous year’s corporate tax filing. (gravitypayments.com)

The practical comparison is the amount received against the fixed total payback, expected repayment duration and percentage removed from daily deposits. The smallest holdback is not automatically the lowest-cost offer.