A Merchant Cash Advance; (MCA) is a lump sum of cash given to a business in exchange for a percentage of their future credit/debit card sales. This acts as an advance on revenue rather than a traditional loan. This becuase MCA are an advance against a percentage of future reveune for a predetermined amount of time to cover the debt and usually is automatically deducted from the credit card card sales as oppose to a loan reapayment schedule. This makes advance application approvals easier and faster to get, often without needing good credit. In this case its NOT A LOAN, it’s a cash advance based on your company’s credit card sales. GGA also offers loan products that can be a hybrid advance yet structured as a loan whereby its approval is determined based on revenue sales not credit card sales.   

How it works

• Advance, Not a Loan: A provider gives you cash now (e.g., $10,000) for a fixed total repayment amount (e.g., $12,000), which is a multiplier (factor rate) of the advance.

• Repayment: A fixed percentage (e.g., 10%) of your daily credit/debit card sales is automatically sent to the provider until the total amount is paid off.

• Flexibility (Variable Payments): If sales are slow, your payment is lower; if sales are strong, your payment is higher, which can help with cash flow management. 

Pros

• Fast & Easy: Quick application and funding, often faster than traditional loans.

• Lenient Eligibility: Less focus on credit scores; more on sales volume, good for businesses with lower credit.

• No Collateral: Doesn't usually require specific assets as security.