# Merchant cash advance (MCA)

Short-term financing repaid from a business's daily card sales or deposits.

It is the most expensive money a small business commonly takes, and it hides well. The daily debits run through the bank statements while the P&L shows nothing unusual. Some agreements carry a confession of judgment, which lets the funder take a judgment without a lawsuit. A target that has taken one is telling you something about its cash flow. Read three months of bank statements for daily fixed debits before trusting any earnings figure.

In numbers: A shop that took a $80,000 advance repays $104,000 through 15% of daily card sales; the debits show in the bank statements, not the P&L, which is where diligence finds them.

Source: https://searchspheresource.com/glossary/merchant-cash-advance
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt