Central Funding Exchange  LLC      

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Merchant Cash Advance (MCA)

Merchant Cash Advance (referenced as “MCA”) is a type of financing that provides a company a “cash advance” secured against a percentage of their future credit card receipts.   Repayment to the lending company is made by withdrawal of funds directly from the bank or merchant account, often daily.  So instead of making fixed monthly payments, MCA companies work with the natural cash flow, automatically deducting a small percentage from the credit/debit card sales until the cash advance is repaid in full. This allows businesses the flexibility to make lower payments during periods when cash flow slows down.

 

This financing is now available to newer companies and even organizations that have lower credit scores. A low credit score will not prevent a business from acquiring the cash needed.  The lending decision is often based on the strength of the revenue flow of the business rather than the strength of the owner’s or business credit history.  Many retail companies utilize an MCA arrangement.