Overview

A merchant cash advance (MCA) was originally structured as a lump sum payment to a business in exchange for an agreed-upon percentage of future credit card and/or debit card sales. ... The term "merchant cash advance" may be used to describe purchases of future credit card sales receivables or short-term business loans. A merchant cash advance provider gives you an upfront sum of cash in exchange for a slice of your future sales. ... Instead of making one fixed payment every month from a bank account over a set repayment period, with a merchant cash advance you make daily or weekly payments, plus fees, until the advance is paid in full