What is a Merchant Cash Advance? | Business Financing Explained

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Many small business owners in serious need of cash consider merchant cash advances (MCAs). For owners of startups or those with poor credit, an MCA may feel like the only financing option for getting through a cash flow crisis, addressing an urgent need for working capital, dealing with a financial emergency, or for other business needs.

Merchant cash advances technically aren’t loans. Rather, with an MCA, a company purchases your future sales, which you will use to pay them back.