A merchant cash advance is a sum of capital that you repay through your businessâs daily credit card transactions.
This kind of financing is a quick and easy way to get cash without collateral, even if you donât have the best possible credit score.
A merchant cash advance might sound niceâa cash advance approved and funded in just a day or two, with nearly no paperwork necessaryâbut it comes with a big caveat. Youâre accepting that lump sum of capital in return for a percentage of your daily credit card sales.
Although itâs a fast option for business financing, merchant cash advances are usually the most expensive loans available, with APRs that can sometimes reach the triple digits.