Glossary of Terms

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Merchant Cash Advance

A Merchant Cash Advance is a lump sum payment to a business in exchange for an agreed upon percentage of future credit card and/or debit card sales. The business authorizes the merchant cash advance company to take a percentage of its daily credit card income directly from the processor that clears and settles the credit card payments. Once the obligation has been met, usually in a year or less, the automatic deductions stop. Merchant cash advances are not loans - they are a sale of a portion of future credit and/or debit card sales. (Courtesy

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