🔑 Key Features of a Merchant Cash Advance
| Feature | Description |
|---|---|
| Funding Type | Cash advance, not a loan |
| Repayment | A fixed % of daily sales (via POS, card swipes, or bank credits) |
| Term | Typically 3 to 12 months |
| Funding Speed | Fast—within 24 to 72 hours after approval |
| Collateral | Usually unsecured |
| Credit Requirement | Lower than traditional loans |
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📊 How It Works – Example
You get an advance of â‚ą5,00,000
A daily deduction of 15% of sales is agreed
If your daily sales are ₹20,000 → ₹3,000 is auto-deducted
Deductions continue until the agreed total repayment amount (advance + fee) is collected.
Apply Loan
đź“‹ Documents Typically Required
Business PAN & registration proof
Bank statements (last 6–12 months)
POS/sales report or GST returns
KYC of owner
Proof of digital/card transaction history
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🏪 Best Suited For
Small businesses with steady daily card or digital sales
Seasonal businesses needing short-term liquidity
Merchants without access to traditional bank loans
Businesses in retail, restaurants, salons, e-commerce, etc.