Merchant Cash Advance
Merchant Cash Advance (MCA) is a financing option where a business receives a lump sum of cash upfront in exchange for a percentage of its future credit card or daily sales revenue. Unlike traditional loans, MCAs are repaid through a portion of the business's daily or weekly transactions, making repayment flexible and tied directly to sales performance.
Key Features of MCA Loans:
Fast Approval and Funding: Businesses can often receive funds within 24-48 hours.
Repayment Based on Sales: Payments fluctuate with business revenue, providing flexibility during slower periods.
No Collateral Required: MCA loans are unsecured, so no physical assets are needed as collateral.
Higher Costs: Typically comes with higher fees or factor rates compared to traditional loans.
Easy Qualification: Approval is based more on the business's cash flow and sales history than on credit scores.
MCA loans are commonly used by businesses with high credit card sales, such as restaurants, retail stores, and service providers, for short-term financing needs like inventory purchases, marketing, or managing cash flow gaps.
