Merchant Cash Advance (MCA)

A merchant cash advance, often known as an MCA, is essentially a lump sum loan in exchange for a portion of your future sales revenue. Although it seems enticing, you should be aware that in exchange for the lump sum, your daily cash flow will decrease due to the repayment of this merchant cash advance loan. The repayment takes place in the form of ACH straight from the credit and debit sales your business makes. This decreases your future cash flow sometimes putting a business in a repetitive back cycle of negative cash flow. Business cash advance loans have high interest rates and difficult daily repayment schedules so it is prudent to do your due diligence and make sure that this kind of business loan is right for you at this time. Business cash advance fees are based off a risk assessment, the higher the risk the higher the fees. A merchant cash advance is really good for very short term business needs. If you think you may need a longer term solution then speak to a loan officer about our other business loan options.