Glossary
Merchant cash advance
MCA, revenue-based financing
Not a loan. A purchase of your future receivables at a discount, repaid by daily or weekly debits from your account.
Why it matters to you
Quoted as a 'factor rate' rather than an interest rate, which obscures the real cost. A factor of 1.38 repaid over eight months isn't 38% a year — it's often two or three times that once you account for repaying while the balance shrinks. If you have one, work out the true annual figure before you take another.