A merchant cash advance or MCA is a lump sum of capital lent against a business’s future sales. This is what makes this type of financing an advance and not a loan.
By definition, a business cash advance is short-term and repaid through smaller daily (or weekly) payments until the total cash advance and lender fees are paid in full.
A small business owner can apply for a merchant cash advance and, once approved, have the cash advance deposited into a bank account the same day.