How does a merchant cash advance work?

A merchant cash advance is a lump sum of money given to a business in exchange for a percentage of future credit card sales. The advance is repaid daily or weekly, and terms vary by lender.

How does paper grade affect merchant cash advances?

MCA lenders use paper grades to assess creditworthiness based on credit score, time in business, and revenue. Grades determine loan amounts, rates, and repayment terms. Higher grades may lead to better terms, while lower grades may result in less favorable terms.

How long does the MCA underwriting process take?

The merchant cash advance underwriting process can take as little as a few hours or as long as a few days, depending on the lender and the complexity of the application. Some lenders offer quick decisions and funding, while others may take longer to review and approve applications.

About the Author

Bobby Samuels

Bobby Samuels

Writer and Business Communications Consultant

Bobby's introduction to stock options at a hi-tech firm left him perplexed and determined to expand his knowledge in finance. He pursued a Master's degree in Finance at Harvard University. His diverse client base that includes CEOs, CFAs, private equity executives, venture capitalists, global investment firms, real...

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