Merchant Cash Advance - Zip Capital Group I n s t a n t Q u o t e G e t S t a r t e d N o w
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Merchant Cash Advance

What is a Merchant Cash Advance?

A merchant cash advance (MCA) is an advance on your credit card sales. It is not a loan, but rather an advance based on your credit card sales deposited into your business’ merchant account.

A merchant cash advance is a quick way to get your business the working capital it needs, rather than waiting for it to come in as customers pay. By buying a future portion of your credit card sales, it will provide your business with an upfront, lump sum of cash, enabling you to put your credit and debit card receivables to work right away.

Whereas a bank or lender will look at your creditworthiness to evaluate your risk, a merchant cash advance provider evaluates risk differently. An MCA provider will look at your daily credit card receipts to evaluate if a business can pay back the advance on time. As a result, rates on an MCA will be different from other financing options so understand the terms offered so that you can make an informed decision to determine if an MCA works for you.

What Is a Holdback?

As it pertains to an MCA, there is a term you should be familiar with. A holdback is money that is kept in reserve by a lender until certain conditions are met. In the case of an MCA, it is the percentage of daily credit card and debit card receipts that are withheld to pay the MCA back.

Since the repayment of your merchant cash advance is based upon the daily balance of the MCA, the greater the dollar amount of credit and debit card transactions a business does, the faster they can repay the advance. Should transactions on any given day be below expectations, the draw from the merchant account will be less. Stated another way, payback is for the most part, relative to the incoming credit card receipts.

Interest vs. holdback

With a loan, an interest rate is the cost of borrowing money. An MCA is not a loan. Instead, a merchant cash advance has what is called a “factor” rate. Unlike a loan, a factor rate is not amortized over the course of the advance.

Benefits to a merchant cash advance

Business owners can often access capital fast with an MCA. They also make sense for a business that needs to access capital quickly. Because qualifying for a MCA is often easier than a loan, an MCA may often be more expensive than a loan.

Since an MCA offers quick access to capital, they make sense for a business needing to:

  • Pay expenses and salaries
  • Fund marketing campaigns
  • Buy inventory
  • Increase capacity or production, and
  • for other business financing need

A Merchant Cash Advance from Zip Capital Group

A merchant cash advance with Zip Capital Group is designed to provide your business with the funds needed with ease, speed, and peace of mind. A merchant cash advance is typically repaid in less than 18 months' time. With a small percentage of future sales, repaying your advance is just as simple.

About Zip Capital Group

Zip Capital Group is a leading small and medium-sized business lender working with companies in a wide range of industries. In addition to a merchant cash advance, we can help your business with:

Contact us or call (800) 795-3919 to talk to a small business funding specialist.



“Apply Online” It takes about 45 minutes to give us your business and ownership information


Receive a decision within 48 hours. Review Financing terms to determine if it works for your business.


When your Financing is funded, documents are signed electronically and funds are sent to your checking account.

or call us today at

1 800-795-3919