Merchant Cash Advances (MCAs)

A Merchant Cash Advance (MCA) is a form of business financing where a borrower receives an upfront lump sum of cash in exchange for a percentage of its future credit card sales or daily revenue. Unlike traditional bank loans, MCAs are not technically loans but rather an advance on future earnings, making them easier to qualify for but often much more expensive. A small business typically applies for an MCA through an alternative lender, which evaluates the company’s daily or monthly revenue. If approved, the business receives a cash advance, which is then repaid through daily or weekly deductions.  The repayment continues until the total amount owed, often significantly higher than the original advance, is fully repaid.