Merchant Cash Advance

Merchant Cash Advance Basics

  • Obtain short-term working capital in exchange for a percentage of your future credit card sales
  • There is no collateral required for a merchant cash advance
  • Simple 4-step application process that takes minutes
  • Obtain approval within 24-48 hours
  • Get the best rate with offers from multiple lenders´╗┐

How Does a Merchant Cash Advance Work?

A merchant cash advance (MCA) gives you quick access to working capital in exchange for a percentage of your future sales. This is done by leveraging your credit card merchant account.

An MCA is not technically a loan. It is a cash advance that a lender provides based on the credit card sales of your business. You are selling a portion of future credit card sales to immediately acquire capital which you can use for any business purpose.

The agreement will include the advance amount, payback amount, holdback and term of the advance. The holdback is the percentage of daily credit card receipts that are withheld to pay back the MCA. The holdback percentage is based on the amount of the advance, how long it takes to repay, and the typical amount of credit card sales.

Stream Capital will work with its network of lenders to find the best MCA terms for your business capital needs.