Merchant Cash Advance

What is a Merchant Cash Advance?

A merchant cash advance (MCA) is a financial product designed to provide businesses with quick access to working capital. It is not a traditional loan but rather a cash advance against future credit card sales. 

Here’s how it typically works: 

A business owner in need of funds agrees to sell a portion of their future credit card sales at a discounted rate to a merchant cash advance provider. In return, the provider gives the business owner a lump sum payment upfront. The repayment is usually structured as a percentage of daily or weekly credit card sales, and it continues until the agreed-upon amount, plus fees, is repaid in full.

The key features of a merchant cash advance include:

1. Fast Funding: MCAs are known for their quick approval and funding process, often providing businesses with access to cash within a few days.

2. Repayment Structure: Instead of fixed monthly payments, repayment is typically based on a percentage of the business’s credit card sales. This means that during periods of slower sales, the repayment amount decreases, while it increases during periods of higher sales.

3. Fixed Cost: Providers charge a fixed fee or factor rate that are applied to the initial advance amount, so no interest rate as such.

4. Flexible Qualification: Merchant cash advances are often accessible to businesses with less-than-perfect credit or a limited credit history. Providers are primarily interested in the business’s credit card sales volume and history.

Merchant cash advances can be useful for businesses that need immediate working capital, have predictable credit card sales, and/or are seasonal.

We'll help you find the funding your business needs

We will do the heavy lifting for you and what’s more:

  • We’ll manage your application
  • Your credit score is not affected by apply with us
  • You will not pay more than going direct