The lender charges either a «factor rate» on the loan or a fee based on a percentage of future credit card sales. (credibilitycapital.com)
Basically, the small business is selling a portion of future credit card sales to acquire capital immediately. (ondeck.com)
In a merchant cash advance, a merchant gives businesses upfront cash or capital in exchange for a percentage or a portion of future credit card sales. (profitableventure.com)