A Merchant Cash Advance (MCA) is not actually a loan.  It is an advance on the future revenues and/or credit card sales of the business.  The “loan” or advance allows a business owner who accepts credit and debit card payments to obtain an advance on the funds they receive each day. The funds that flow through their merchant account can be used to leverage the advance.  Key Commercial Capital determines the amount a merchant can be advanced based on a number of factors including:   monthly revenue, the number of monthly deposits (typically a minimum of 8 monthly deposits is required) and the credit score of the merchant. The advance is paid back by either a daily or weekly debit from the merchant account of the business.

Small Business owners can apply for a Merchant Cash Advance and receive the advanced amount in their operational checking account quickly.  In many circumstances, we  are able to approve and fund a merchant in as little as 48 hours. The rates for Merchant Cash Advances are typically higher than a bank loan but many merchants use these advances for an unexpected shortfall in revenue or for quick cash flow purposes.  Businesses that may not qualify for standard bank loans can generally receive funding through a Merchant Cash Advance.  Terms can be from as little as 3 months to as much as 18 months.  Longer loans typically mean higher merchant cash advance rates.  Higher revenues and multiple monthly deposits along with a shorter term, usually equate to lower rates.

Merchant Cash Advances can also be stacked.  A business can utilize more than one lender for these transactions and have several advances active at one time.