WHAT IS A MERCHANT CASH ADVANCE?

A Merchant Cash Advance (MCA) is sometimes referred to as a “Business Cash Advance,” or “Credit Card Factoring”.  A business owner will receive a lump sum paid back via a fixed percentage (Holdback Rate) of future sales. Payments are automatically deducted each day, and the size of each one fluctuates with your sales volume.

A merchant cash advance is easier to qualify for than other small business loan options. Small business owners with little collateral, business credit history, or low fico credit scores may benefit from this option. The amount of business financing you qualify for from merchant cash advance companies depends on the amount of future receivables or the sales you’re projected to make over the upcoming repayment term.

With this kind of business financing arrangement, you agree to receive a lump sum payment of capital in exchange for your future sales at a discount.