A Merchant Cash Advance (MCA) is a unique type of funding product that allows a business to receive a lump-sum payment in exchange for an agreed-upon percentage of future credit and debit card sales.

The defining characteristic of an MCA is its repayment structure: the business pays back the advance by giving a portion of its daily card transactions directly to the MCA provider.

This percentage is fixed, but the actual amount varies depending on the volume of the day’s sales.