Prime Merchant Cash Advance
This level is for businesses that are considered low risk, typically those with strong credit histories and consistent revenue streams. The terms are generally more favorable.
Standard Merchant Cash Advance
This is the most common type of MCA. A business receives a lump sum of cash in exchange for a percentage of its future credit card sales or daily revenue
Revenue-Based Financing
Revenue-Based Financing is similar to an MCA but broader in scope. Instead of relying solely on credit card sales, the business’s total revenue (from all sources) is used to calculate the repayment terms.
Merchant Line of Credit
A Merchant Line of Credit (MLOC) gives businesses access to a revolving line of credit, allowing them to borrow as needed, up to a predetermined limit.
Factor Advance
In a factor advance, the business sells a portion of its receivables (outstanding invoices) in exchange for immediate funding. This is a different type of cash advance, as it’s tied to accounts receivable rather than future sales.
SBA Loan
While not an MCA, some MCA providers may also offer access to SBA loans, which are government-backed and offer much more favorable terms than MCAs.