Merchant Cash Advance (MCA)
A merchant cash advance (MCA) is a type of financing option available to small businesses that need immediate cash flow.
It is not a loan, but rather a cash advance against future credit card sales.
The way it works is that a lender will advance a certain amount of cash to a business owner in exchange for a percentage of their future credit card sales. The lender will typically collect the repayment by deducting a percentage of the daily credit card sales until the advance is paid off. Merchant cash advances are typically used by businesses that need fast access to cash and have a high volume of credit card sales.
However, they can come with high fees and interest rates, so it’s important to carefully consider the terms and assess whether it’s the right option for your business
