Merchant Cash Advance and its related ACH Advance are lump sum advances of immediate cash which is repaid with a percentage of future credit card or other retail sales. Although considered an expensive form of financing, Merchant Cash and ACH Advances are often readily accessible sources of working capital when other options are not available. A Renewable Source of Funding
Although Merchant Cash and ACH Advances are expensive, there is considerable risk in the transaction for the provider so the expense is understandable. It is also important to note that industry statistics evidence nearly two out of every three businesses opting to utilize this type of funding, renew their advances a second and even third time for working and expansion capital until they can qualify for a more traditional and less expensive type of financing.