2 min read
Definition
A merchant cash advance is an advance against future card sales: the business receives a lump sum and repays it as a fixed percentage of daily card takings, with the cost expressed as a factor rate rather than interest.
In plain terms
You get cash now and pay it back automatically as customers pay by card — more on busy days, less on quiet ones. But the effective cost can be steep.
Why it matters for your company
It suits card-heavy trades wanting flexible repayment, but a straightforward term loan is often cheaper and clearer. Compare with the true cost calculator.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.