What a merchant cash advance actually is
A merchant cash advance is not a loan. It is the purchase of a portion of your future receivables at a discount. We advance a lump sum today and collect a fixed total from future revenue. The difference between the two is expressed as a factor rate, not an interest rate.
Because it is a purchase rather than a loan, there is no APR, no monthly payment and no amortisation schedule. Anyone quoting an MCA in APR is comparing two different products.
What decides your offer
- Monthly revenue and how consistently it arrives
- Average daily balance against that revenue
- Negative days and NSFs across the last three to six months
- How many funding positions are already open
- Time in business and industry
- Credit, as one factor among several — not the gate
Remittance structures
Repayment is collected automatically. The structure matters more to your cash flow than most owners expect.
| Structure | What it means | Effect on cash flow |
|---|---|---|
| Weekly ACH | A fixed amount debited once a week | Easiest to plan around. Ask for this first. |
| Daily ACH | A fixed amount debited every business day | Heaviest pressure on the account. Common but harder to carry. |
| Split processing | A share of each card batch is diverted | Scales with sales, but harder to forecast. |
Being direct changes what you get
- One file, one underwriter, one decision — not a form distributed to a network
- Your details are not sold on as a lead
- The offer you are shown is the offer, before you accept
- A real person to talk to about the structure, not a call centre
What we will not tell you
We will not guarantee approval, and we will not promise a funding time before anyone has seen your statements. Any funder who does either is selling, not underwriting.