What is Merchant Cash Advance (MCA) or MCA Loan?

A Merchant Cash Advance (MCA) or Advance Loans aren’t technically a loan but are one of the most popular methods used by small business owners who deal with credit cards (restaurants and other retail merchants). Although often referred to as MCA loans, they are an advance based upon a business’ monthly volume of credit card transactions. A regular and predictable flow of credit card transactions will often help a small business find the funds they need when traditional small business financing is unavailable. However, MCA’s are historically one of the more expensive sources of working capital for a small business.

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