What is a Merchant Cash Advance?

A merchant cash advance, or MCA, is an alternative financing solution to a small business loan. While a merchant cash advance provides cash for working capital, it's not a loan.  It's an advance off future credit card receivables. 

Many types of businesses, such as restaurants, can't obtain traditional bank loans.  The Merchant Cash Advance industry was created to fill this need.  Advances are obtained by contacting a MCA Agent.  The agent finds a cash advance provider that extends funds to a merchant.  Often a MCA can be funded in around a week.  In exchange for receiving the cash advance, the merchant agrees to send a portion of their daily credit card settlement until a higher amount (the repayment amount) is paid to the cash advance provider.  The portion of daily settlement diverted would be calibrated to repay the repayment amount over a short period of time, typically 6 months.