A merchant cash advance (MCA) is a flexible and accessible funding solution tailored for businesses that generate consistent credit card sales. Unlike traditional loans, which come with fixed monthly payments and rigid repayment schedules, an MCA is repaid through a percentage of your daily credit card transactions. This repayment structure, known as the holdback percentage, ensures that your payments align with your cash flow—higher on strong sales days and lower when sales dip. This flexibility makes MCAs an ideal choice for businesses with fluctuating revenue or those seeking a funding option that adapts to their financial rhythm.
