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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.
