Example: a diner takes $20,000 now and agrees to repay $25,000 from future card sales, at 15% of each day's card sales. Here is one week.
Left to repayBefore Monday
$25,000.00
Paid this week$0.00
Worked example after Wikipedia, "Merchant cash advance": $20,000 now for $25,000 of future card sales. Shares of 15 to 35% are typical; your offer sets your own amount, cost and share.
(What owners use it for)
Payroll is due on Friday.
The delivery van needs a new transmission.
The busy season starts before the stock is paid for.
No. Legally it is a purchase of part of your future card sales, not a loan. That is also why it usually costs more than a bank loan, so compare the total you repay, not only the amount you receive.
You pay less. The payment is a share of that day's card sales, so a quiet Tuesday takes a smaller amount than a busy Saturday.
From $5,000 to $1,000,000. The amount in your offer depends mostly on how much the business sells.
Funding can reach your business account the same day you are approved.