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What is a Merchant Cash Advance?

What is a Merchant Cash Advance?Photo from Unsplash

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A Merchant Cash Advance is NOT a loan. It is a cash advance that offers lump-sum funding to businesses by borrowing against the income of future sales at a discounted price. An MCA is repaid with a fixed percentage of daily or weekly credit card sales, plus fees, until the advance is paid in full. Businesses must show past bank statements or receivables.

Ideal for businesses that:

  • Have a high volume of credit card transactions and daily deposits.
  • Don’t have the time or qualifications for other types of funding.
  • Are seasonal businesses.
  • Have temporary cash flow issues.

Eligibility is flexible:

  • No collateral required.
  • Lower credit score approved.
  • Merchants can choose how to use cash, not tied to a specific use.
  • Simple and easy application process, takes minutes to complete.
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