Merchant Cash Advance Definition

Merchant Cash Advance Explained:

What is a Merchant Cash Advance? A Merchant Cash Advance is a financing option for small businesses in which a merchant account provider pays a one-time lump sum to a merchant in exchange for a percentage of future credit card sales. This percentage of sales is collected by the credit card processor until the initial amount plus interest is repaid in full. Because a Merchant Cash Advance is technically classified as a sale of a portion of future sales rather than a conventional loan, it is not subject to interest rate regulation. As a result, the interest paid on a Merchant Cash Advance can be much higher than the interest typically paid on a small business loan.

Merchant Cash Advances are generally marketed to business owners who are unable to secure traditional small business loans due to poor individual credit histories. They allow a merchant to obtain access to cash much more quickly than a traditional loan, and their repayment method allows for some flexibility over time. Merchant Cash Advance payments are typically withheld seamlessly by the credit card processor, much like normal credit card processing fees.

Merchant Cash Advance Video Explanation

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Why I'm Qualified to Write About Credit Card Processing and Merchant Account Services

I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.

From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers on this website.

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