Merchant cash advance

What is a merchant cash advance?

A merchant cash advance (MCA) gives your business a lump sum of cash today in exchange for a portion of its future sales. It is a purchase of future receivables, not a loan.

Instead of a monthly bill with interest, you agree up front to a fixed total payback amount. The funder then collects a small, set amount from your business bank account each business day or each week until that total is paid.

How it works

1. Apply

   Send a short application with your last four months of business bank statements.

2. Get your offer

   Funders size the advance on your average monthly deposits. Each offer shows the amount you receive, the total payback and the daily or weekly payment.

3. Sign and get funded

   Choose the offer that fits, sign electronically, and the money is deposited into your business bank account, often the same or next business day.

4. Payments run automatically

   The agreed amount is debited from your account on schedule until the total payback is complete. Once a good part is paid down, many funders offer a renewal.

Documents needed to apply

• Completed and signed application
• Last 4 months of business bank statements (month-to-date activity helps)
• Voided business check
• Copy of the owner's driver's license

For larger amounts, a funder may also ask for credit card processing statements or a recent business tax return.

Good for

• Covering payroll or a slow month
• Buying inventory before a busy season
• Emergency repairs or equipment breakdowns
• Taking on a big job or order
• Businesses that were turned down by a bank