A merchant cash advance is not a small-business loan; rather, it’s a cash advance in exchange for a cut of your future business sales.
Instead of making monthly installment payments over a set period of time, you make daily or weekly payments, plus fees, until the merchant cash advance is paid in full.
MCAs often carry triple-digit annual percentage rates, or APRs, which represent the total cost of a loan, including interest and fees. And the daily or weekly repayment schedule can cause cash flow problems for your business if your sales tend to be erratic or you hit a rough patch.