Eligibility: Eligibility for an MCA advance is based on assessment of your most recent and estimated credit card sales.

Advance amount: Amount approved would depend on factors such as time in business, your industry, monthly revenues, existing debt repayments, etc.

Repayments based on factor rate: Repayments are calculated based on a factor rate which should not be confused with the standard interest rate. For example, for an MCA of $10,000 at a factor rate of 1.20, you would repay a total of $12,000 ($10,000 X 1.20). If it is agreed to repay at a rate of 10% of daily credit card sales and your daily sales are $333 (approx. $10,000 per month), it would take approximately 12 months to repay $12,000 ($333 X 30 X 10% X 12).

Repayment amount scales with sales: Should credit card sales grow, so would the MCA payments, and the balance would be paid off sooner. However, the amount to be repaid would still remain the same at $12,000.

Frequency of repayments: Repayments are integrated with your merchant processing account and are typically remitted either daily or weekly.