A merchant cash advance is not a business loan, but a method of financing whereby a business owner agrees to sell his future receivables at a discounted rate. The merchant has several ways of paying back the advance including split funding from their credit card terminal, ACH fixed amounts from their bank account, and lockbox methods. Prior to the advance being paid off, the merchant also has an opportunity to re-new his/her advance and obtain additional funds.
Since the merchant advance is not an actual business loan, this means that there is no collateral attached to it, and thus it is an unsecured advance and is not tied to any personal or business assets. With our simple funding process it has become easier than ever for a merchant to obtain working capital even with today’s economic conditions.