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The merchant cash advance loans are preferred by businesses that want to repay the loan daily from a percentage of its card sales.


 Access Money is one of the top merchant cash advance lenders in Canada and is ready to provide your small business with financing. Our approval processes are easy and client reviews help small business owners make accurate and quick decisions.

What is a Merchant Cash Advance?

Merchant cash advances enable small businesses to unlock credit sale values or accelerate the timelines of other receivables. The business will use its receivables streams to approach lenders for money in cash to the business. Merchant cash advances are an effective short-term financing option for businesses that cannot qualify for bank loans.

How it Works

The merchant cash advance (MCA) financing options are ideal for businesses that draw their revenues from card (debit or credit) sales. MCA is not a typical loan since it doesn’t charge interest on the advanced principal. The lender is paid through future sales made by the business by taking a cut until the amount is paid in full.

    The MCA financing option is available in a couple of different structures

    1. The most popular is where a customer gets a cash advance upfront with an agreement in place to pay a fixed percentage of future sales (holdback) directly remitted to the lender.


    2. MCA providers typically target businesses that make card sales. It is also available for businesses that have cash sales as a majority of revenues. The business will pay weekly or daily fixed debt amounts to the provider through an automated clearing house (ACH) withdrawal.

    So how does an MCA provider stand to make a profit if interest is not charged on the amount advanced to you?

    A factoring rate is used for the MCA and is a multiplier on the principal amount that represents the total amount of fees to be paid. Example: An MCA of $10,000 which is provided with a factoring rate of 1.25 will require a customer to pay $12,500 ($10,000X1.25) at the end. The amount represents the total of principal and fees. The lender gets $2500 for the risk taken in advancing the money.

    Numerical Example 

    Consider a restaurant business that requires a $50,000 cash advance. The restaurant generates $1,000 in card sales daily. If the business owner chooses to get the cash from an MCA and gets a quote of 20% holdback rate and 30% factoring rate, it means they will pay $200 (20% of $1,000 of daily sales) and a total of $65,000 ($50,000X1.3) in principal and fees. It will take the restaurant owner 325 days to pay back the MCA.