Merchant Cash Advance is a type of funding which purchases a fixed amount of a business future receivables and credit card sales at a discount. Unlike the large fixed monthly payment paid for the bank loans, the merchant cash advance allows businesses to pay a fixed percentage of its daily credit card sales until all the funds have been repaid.

The merchant cash advance is a quick and easy way for a businesses to get additional cash, however, the interest rates can be as high as 15% - 50%. Nevertheless, an important advantage of the merchant cash advance is that the amount you pay back is determined by your credit card sales, thus you’ll pay a lower amount during slow months than during the high season. The merchant cash advance is usually repaid within 12 months depending on the terms and the amount of your credit card sales. The funds can be used for business related expenses, such as:

  • Immediate Business expenses
  • Running on-going operation
  • Paying and/or training employees
  • Acquiring business assets such as equipment and vehicle
  • Renovation, Business improvement and expansion