How does a Merchant Cash Advance work?
When you apply for a merchant cash advance, your recent months of debit and credit card processing totals are reviewed to determine your approval amount. Then, you are advanced capital that you can use for any business expense and pay back through a small fixed percentage of your future revenue stream.
Since the repayment is a fixed percentage, the amount adjusts based on your daily payment receivable volumes. When you have a good day, you pay back more on your advance. If your sales are slow, well, you pay back less. Regardless, you will still have enough cash flow to deal with your day-to-day business functions.