Current business expenses
Purchase inventory and cover current operating expenses with upfront funds. The collection commitment also needs room in the cash flow used to run the business.
Merchant cash advances
Future receipts. Funding for current business needs.
Explore receivables-based funding for inventory and everyday operating costs. A merchant cash advance typically exchanges upfront funds for a portion of future business receipts.
Receivables-based funding
Future business receipts are central to a merchant cash advance. The purchased amount, fees and collection terms determine what the business owes under the agreement.
Collections over time
Collections may occur daily or weekly, leaving less cash available for other expenses. The agreement determines the payment method and any adjustment when sales change.
Frequently asked questions
Is a factor rate the same as an APR?
No. A factor is commonly used to calculate a total collection amount. It does not express an annual percentage rate, and separate fees may also apply.
Do collections automatically fall when sales fall?
Not necessarily. The agreement sets the collection method and any reconciliation process. A lower-sales period may not change the next debit automatically.
Does paying early reduce the cost?
A shorter collection period does not necessarily reduce the purchased amount or fees. The terms set any early-payment discount.