BUSINESS CASH ADVANCE
A Business Cash Advance (BCA) is a type of loan based on future revenue. It is the cash inflow in your existing business without any security or collateral. It is also known as PDQ Loan or Merchant Cash Advance. The primary purpose of BCA is to inject cash in the business with a pre-fixed rate charged against your expected future transactions including credit card payment receipt.
Merchants and Businesses can receive working capital against future credit card sales. This mode of repayment provides a lot of flexibility as there is no fixed repayment amount every month. You pay as you generate revenue, simply paying a percentage from each of the future transactions till the agreed amount is re-paid.
HOW DOES IT WORK?
We usually advance a capital amount equal to your monthly card sales turnover. Thereafter, an agreed percentage (usually around 10%) is then deducted from each of your future card sales to repay the amount.
Each time you process a sale through your merchant card machine, 90% of the revenue from the sale will go into your business bank account and 10% will get transferred towards the repayment of the advance.