Merchant Cash
Advances (MCA)
MCAs are often used for short-term needs but require careful evaluation due to cost and cash flow impact.
What is a MCA?
A Merchant Cash Advance provides fast, revenue-based funding for businesses that need quick access to capital and may not qualify for traditional financing. Repayment is tied to future receivables rather than fixed monthly payments.
How MCA Funding Works
Instead of traditional loan payments, repayment occurs through daily or weekly deductions from revenue.
Key characteristics include:
- Approval based on revenue performance
- No collateral required
- Flexible use of funds
When MCA Makes Sense
Merchant Cash Advances can be appropriate in situations where speed outweighs cost, and traditional financing is not viable.
They are most often used to address immediate cash flow disruptions, cover unexpected or emergency expenses, or act on opportunities that require rapid access to capital without lengthy underwriting.
- Short-term cash flow gaps
- Emergency expenses
- Time-sensitive opportunities
Understanding the MCA Process
Because MCA structures are repaid through daily or weekly revenue pulls, improper use can quickly create operational strain. fundfi evaluates cash flow, margin impact, and total cost of capital before recommending an MCA, ensuring it is used as a controlled, short-term solution rather than a recurring dependency.
Find the Right MCA for You
fundfi helps businesses compare offers, understand true costs, and avoid structures that strain operations.