Merchant Cash Advances
The buying of a business's future receivables in exchange for upfront, unsecured, working capital in as little as 24 hours. Instead of digging into the business reserves… or worse, cash flow, the money you need for marketing, equipment, or to cover unexpected expenses is at your fingertips.
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What is a Merchant Cash Advance?
A merchant cash advance (MCA) is a short-term unsecured loan provided by a lender to a business owner who may not have enough time to wait or qualify for traditional bank financing. An MCA is often referred to as a "cash advance" or a "short term-loan".
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How does it work?
An MCA works much like a personal loan. You borrow money from a third-party lender at a factor rate determined by the lender based on factors such as risk, credit, time-in-business, etc. The difference is merchant cash advances, purchase the company's future receivables or revenue. Often, MCA repayments are structured to have a percentage of a company’s daily revenue sent directly to the investor company. To repay the advance, you pay back the principal plus any (if applicable) fees. Payments are typically drawn daily or weekly. In rare cases, you can qualify for bi-weekly.
