Merchant Cash Advance

A Merchant Cash Advance (MCA) is a type of business financing in which a business advances you a lump sum that you repay through a percentage of your daily credit card and debit card sales plus a fee. Technically, a merchant cash advance is not a business loan, but rather you are selling your future debit and credit card transactions at a discount.

Typically, merchant cash advances are repaid daily or weekly, and the financing company automatically collects the payment from your payment processor. This way, repayments are based on your sales - if you experience a drop in sales, your payments will also be lower, but it will take longer to repay the advance.

Merchant cash advances are usually easy to apply for (even if you are a startup or have a poor credit rating) and are paid out quickly. However, they are known for high APRs - and since they are not business loans, there are few regulations on merchant cash advances.

Details
Line of Credit Icon 1
MAX ADVANCE AMOUNT: Up to $500,000
Line of Credit Icon 2
REPAYMENT: Paid daily or weekly via your merchant or bank account
Line of Credit Icon 3
FACTOR FEE: Typically ranges from 1.1% to 1.5%
Line of Credit Icon 4
SPEED: As fast as one day
Benefits
Benefits Icon 1
Quick access to funds and easy approval process
Benefits Icon 2
Accessible to businesses with bad credit
Benefits Icon 3
Suitable for a range of business purposes
Benefits Icon 4
Repayment based on your sales
To consider
Higher fees than most other loans
Daily deduction of credit card sales
reduces cash flow
Easy to end up in a debt cycle
Confusing contracts and little regulation
Contact us

We are here to achieve good things for you and your company

* I Agree
By providing my phone number & email and clicking the next button, I consent, acknowledge, and agree to Tru Capital's Terms & Conditions, Privacy Policy.
Enter 141850 in the box below to ensure you're not a robot.
Chat Agent Image
Sarah
Online Agent
Chat Now