A merchant cash advance is a type of business financing where a business receives a lump sum of cash upfront in exchange for a percentage of its future credit and debit card sales. Unlike traditional loans, repayments are made through daily or weekly deductions from these sales.
How Does It Work?
Application: The business applies for an MCA, providing details about its credit and debit card sales.
Approval and Agreement: If approved, the business signs a contract outlining the advance amount and repayment terms.
Repayment: The MCA provider takes a percentage of the business's daily or weekly credit and debit card sales until the advance is fully repaid