What is merchant cash advance (mca)?
Merchant Cash Advance (MCA): A daily-repayment advance priced with a factor rate—expensive, and usually the wrong tool for a manufacturer.
How it works
MCAs debit your bank daily or weekly and can push effective APRs well over 60%. They almost never fit a B2B manufacturer that invoices on terms; factoring the same receivables is dramatically cheaper. We generally steer manufacturers away from MCAs.
Where you will run into it
Merchant Cash Advance (MCA) comes up most often in working capital conversations. See how working capital works, including real cost ranges and timelines.
Related terms
Merchant Cash Advance (MCA) questions
A daily-repayment advance priced with a factor rate—expensive, and usually the wrong tool for a manufacturer.
MCAs debit your bank daily or weekly and can push effective APRs well over 60%. They almost never fit a B2B manufacturer that invoices on terms; factoring the same receivables is dramatically cheaper. We generally steer manufacturers away from MCAs.
Funding Requirements Checklist for US manufacturers
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