A merchant cash advance, also called a business cash advance, isn’t technically a loan. Instead, it’s a financing option that allows your business to get capital—quickly and easily—by utilizing future credit card sales.
By promising your lender future credit card sales, you can receive cash right away to put toward any new opportunity or expense.
This financing option is often overlooked or dismissed, but it can sometimes be a better choice than a typical small business loan. First, you can keep your cash flow steady by making payments based on daily credit card sales, instead of a set schedule. Second, you can get funding without putting up personal assets or real estate as collateral.