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What Is A Merchant Cash Advance & How Do They Work?

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Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
Chris Motola

Chris Motola

Finance Writer at Merchant Maverick
Chris Motola is a writer, programmer, game designer, and product of NY. These days he's mostly writing about financial products, but in a past life he wrote about health care and business. He's a graduate of the University of Central Florida.
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4 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Tak Ogihara

    hi, great article. Can you now point us in the right direction for finding and choosing the right merchant cash advance?

      This comment refers to an earlier version of this post and may be outdated.

      Bianca Crouse

      Hi Tak,

      I’d recommend taking a look at our merchant cash advance comparison chart and our full list of MCA reviews.

        This comment refers to an earlier version of this post and may be outdated.

        Sam Fisher

        For somethings like this, is it always a variable payment? I’d think that you would want a fixed payment so that way you could plan your budget accordingly. However, I’m sure that it works out either way.

          This comment refers to an earlier version of this post and may be outdated.

          Bianca Crouse

          Hi Sam,

          Merchant cash advances are always variable. The idea is that the repayments will fluctuate along with your cash flow. However, most cash advance providers also offer a fixed fee short term loan, which is like a cash advance, but repayments are fixed. And you are correct, a lot of people prefer the fixed repayment method over the variable method of merchant cash advances.

            This comment refers to an earlier version of this post and may be outdated.

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