Photo from Unsplash

Originally Posted On: https://paydiverse.com/merchant-cash-advance/

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.