What may be useful
Receivables-linked remittances may suit some businesses with changing sales. Application review may focus on business performance and records.
One product. Clear terms.
Merchant cash advance, in plain English.
Understand the structure, potential uses and trade-offs before you decide whether to explore an offer.
What it is
A merchant cash advance (MCA) is a purchase of a portion of a business’s future receivables. The business receives an agreed purchase amount. In return, it sells an agreed amount of future receipts under a written agreement. A merchant cash advance is not a loan.
Important: The cost, remittance method, collection timing, fees and any adjustment rights are set by the specific agreement. Review every term with your own advisors before accepting.
How repayment works
Repayment is connected to business receipts as described in the contract. The written agreement should explain how the amount is collected, how often, whether remittances change with receipts, and what happens if sales are slower than expected. Ask for an example based on your actual expected receipts.
Who may explore one?
Owners who need to consider a business-purpose cash-flow option may ask whether a receivables purchase fits their circumstances. Underwriting may review business receipts, time in business and financial records. Vellford has not provided verified minimum requirements; ask before applying.
Amounts and timing
Vellford has provided an indicative range of $10,000 to $1,000,000+. Actual offers, if any, depend on review and underwriting. A decision may be as fast as 30 minutes and funding may be as fast as the same day for qualified applicants, depending on underwriting and documents. These are best-case examples, not guarantees.
Potential benefits and trade-offs
What to weigh carefully
The total cost can be significant. Frequent remittances may affect cash flow. Agreement terms, fees and personal obligations vary and should be read closely.
Questions to ask
What is the total amount sold and purchase price? What fees apply? How are receipts collected? What happens if sales decline?
A simple example
Illustration only, not a Vellford offer: if a business sells a stated amount of future receivables for a smaller purchase amount, the difference is part of the cost of the transaction. The actual amounts, any fees, and collection terms vary by agreement. Request a complete written cost disclosure—do not rely on an example to estimate your offer.
Before you apply
- Ask for the full written agreement and all costs.
- Understand how remittances are calculated and collected.
- Ask whether any personal guarantee, lien, or payoff condition applies.
- Do not send sensitive financial information through an unverified channel.
- Consult your legal, tax, accounting or financial advisors as appropriate.
Frequently asked questions
Is an MCA a loan?
No. A merchant cash advance is structured as a purchase of a portion of future business receivables. Read your agreement and consult your own advisors.
How much does it cost?
Pricing varies. Ask for the purchase price, total receivables purchased, fees, estimated remittance, and any payoff or reconciliation provisions in writing.
What happens when receipts change?
The agreement explains how remittances relate to receipts and what happens if sales slow. Do not assume a payment adjustment applies; ask before signing.
Does applying guarantee an offer?
No. Every application is subject to review and underwriting. Approval, price, amount and timing are not guaranteed.
A clear next step
Questions before an application?
Call us to discuss the process. A conversation does not obligate you to accept an offer.
Merchant cash advances are not loans. Approval, amounts, and funding times depend on underwriting and documents provided. Terms vary.