A merchant cash advance or MCA provides fast working capital to small businesses. The funding is guaranteed by a businesses future receivables. A specified percentage of future credit card sales or a fixed daily payment will be assessed to repay the advance plus the finance fee. The advance provider will determine a reasonable advance and daily re-payment amount.
MCA's have recently gained popularity, this could be due to many factors including a fast application process and easy to understand terms. Many new advance providers are entering the market making much needed capital available to business owners. Additionally, Merchant Cash Advance programs allow business owners with bad credit to still obtain funding.