BUSINESS FINANCE GLOSSARY
MCA
Merchant Cash Advance
A purchase of future business receivables repaid under the provider's contract.
What does MCA mean?
A purchase of future business receivables repaid under the provider's contract. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
MCA in context
A retailer receives cash today in exchange for a stated amount of future sales receipts.
Why it matters in financing
MCA can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related business finance terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.