A merchant cash advance is different from other business loans or business credit lines because it is not really a loan. If you operate a business that also processes credit card transactions, then you are a merchant processor and can qualify for this type of financing.
A loan has an interest rate, which means that the amount will be 'amortized' in such a way that you will pay back more than you initially borrowed.
However, with a merchant cash advance, the factoring company simply gives you less than the total amount they will collect from your credit card sales.
The simplicity of this business financing solution creates a win-win situation for both parties. The borrower is in a position to repay the advance with great flexibility and the lender is in a position of ownership of a percentage of the future receivables the business will receive.
Here at BLS, we offer MCA funding and other solutions that maximize flexibility and control of your cash flow situation.