💵 How an MCA Works
A Merchant Cash Advance is a form of business financing generally structured as the purchase of a specified amount of a business’s future receivables. A business may receive a purchase price now and deliver the agreed purchased amount through daily or weekly remittances.
🏪 Common Business Uses
An MCA may be used for business needs such as inventory, payroll, equipment, repairs, marketing, or other working-capital expenses.
🔍 Before Accepting an Offer, Carefully Review:
• 💰 Purchase price received
• 🧾 Total purchased amount
• 💳 Fees and estimated financing cost
• 📅 Remittance amount and frequency
• ⏳ Estimated payment period
• ⚖️ Reconciliation or adjustment rights
• 🔐 Personal-guaranty or security requirements
• ⚠️ Default and collection provisions
• ⏩ Whether early payment reduces the cost
📊 Consider the Effect on Cash Flow
Merchant Cash Advances may cost more than traditional financing, and frequent remittances may affect business cash flow. Terms, costs, eligibility requirements, and reconciliation procedures vary by provider and agreement.
⚠️ Important Disclosure
🤝 Our Role
White Feather Capital LLC is a commercial-financing broker, not a lender or financing provider. We connect eligible business applicants with independent third-party financing providers. We do not guarantee approval, funding, financing amounts, rates, costs, terms, or funding speed.
📚 Legal Classification May Vary
An MCA may be structured as a purchase of future business receivables rather than as a traditional loan. However, legal and regulatory treatment depends on the agreement and applicable law. The CFPB treats merchant cash advances as business-credit transactions for certain federal reporting requirements.
🛡️ Advertising and Transparency
Federal law prohibits deceptive or unfair representations concerning commercial-financing products. Costs, remittances, personal guaranties, reconciliation rights, security requirements, and other material terms should be described accurately.
📝 Application and Final Agreement
Submitting an application does not constitute approval or create an obligation to accept financing. Review the complete provider agreement and all required disclosures before accepting an offer. Availability and requirements vary by provider, industry, transaction, and state. New York requires standardized disclosures for certain covered commercial-financing offers, including sales-based financing.
🏢 Business Use Only
For business purposes only. Not for personal, family, or household use.
