Business Cash Advance and Merchant Cash Advance Glossary

  1. ACH Transfer

    ACH Transfer, short for Automated Clearing House Transfer, is a secure and electronic method for transferring funds between two bank accounts. It offers a convenient alternative to traditional payment methods, such as checks, cash, credit cards, or wire transfers. ACH transfers are processed through the Automated Clearing House network, a reliable and regulated system financial institutions use to facilitate transactions in the United States.

  2. Business Cash Advance

    A Business Cash Advance, also known as a Merchant Cash Advance (MCA), is a financial option available to businesses that need immediate capital to support their operations, expansion, or other business needs. It offers a convenient alternative to traditional loans, allowing businesses to access funds quickly without sacrificing their current operations.

  3. Merchant Cash Advance

    A Merchant Cash Advance (MCA) is a specialized form of financing that specifically caters to businesses that generate a significant portion of their revenue through credit and debit card sales. It provides a convenient funding option for businesses to access capital quickly and efficiently, helping them meet various financial needs, including operational expenses, growth initiatives, and even hiring additional talent.

  4. Direct Funder

    A Direct Funder refers to a company or financial institution that directly provides capital or funding to businesses or individuals without the involvement of intermediaries. In the context of financing, a direct funder serves as the primary source of funding, cutting out the need for third-party brokers or middlemen.

  5. Factor Rate

    A Factor Rate is a method used to express the cost of financing or fees associated with certain types of business funding, particularly merchant cash advances or short-term loans. It represents a multiplier applied to the amount borrowed or advanced, indicating the total repayment amount. With the factor rate of 1.15, you pay back $1.15 for every dollar that we advance.

  6. FRSA (Future Receivable Sales Agreement)

    A Future Receivable Sales Agreement (FRSA) is a financial arrangement commonly used in merchant cash advances and certain types of business funding. This agreement establishes a framework where a lender or financing provider purchases a portion of the business’s future sales or receivables in exchange for upfront capital.

  7. Personal Guarantee

    A Personal Guarantee is a legally binding agreement in which an individual, typically the business owner or a key stakeholder, takes personal responsibility for repaying credit or financial obligations incurred by a business entity. By signing a Personal Guarantee, the individual agrees to be personally liable for the debt in the event that the business is unable to fulfill its financial obligations.

  8. Purchase Price

    Purchase Price, in the context of financing or business transactions, refers to the specific amount of money that a lender or buyer provides upfront to the recipient or seller. It represents the immediate funds disbursed or exchanged as part of a purchase or financial arrangement.

  9. Amount Sold

    Amount Sold, in the context of financing or business transactions, refers to the total repayment or settlement amount that a borrower or recipient is obligated to pay back to a lender or seller. It represents the sum of the principal borrowed or received, as well as any associated fees, interest, or other financial obligations.

  10. Renewal

    Renewal, in the context of financing or credit arrangements, refers to the process of extending or obtaining additional funds or credit after the initial borrowing period has expired or been fully repaid. It allows borrowers to continue their relationship with the lender by accessing additional funds, usually under revised terms and conditions.

  11. Site Survey

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