Working Capital & Micro Funding Equipment Financing A loan or lease used specifically to purchase business equipment, secured by the equipment.
Working Capital & Micro Funding Factor Rate MCA pricing expressed as a multiple of the funded amount, not an APR.
Working Capital & Micro Funding Holdback Percentage The fixed percentage of credit card sales an MCA company takes for repayment.
Working Capital & Micro Funding Inventory Financing A loan secured by inventory, helping businesses stock up before peak season.
Working Capital & Micro Funding Invoice Financing Borrowing against unpaid invoices to access working capital quickly.
Working Capital & Micro Funding Merchant Cash Advance (MCA) A lump sum advance repaid via a percentage of future credit card sales.
Working Capital & Micro Funding Purchase Order Financing A loan against a confirmed purchase order to fund inventory or fulfillment.
Working Capital & Micro Funding Reconciliation (MCA) The process of adjusting MCA payments downward when sales slow.
Working Capital & Micro Funding Renewal Funding Additional financing offered after partial repayment of a previous advance.
Working Capital & Micro Funding Revenue-Based Financing Funding repaid as a percentage of monthly revenue until a multiple is reached.
Working Capital & Micro Funding Short-Term Business Loan A loan typically repaid within 3-18 months for immediate working capital needs.
Working Capital & Micro Funding Stacking Taking multiple MCAs or short-term loans simultaneously — usually a covenant violation.
