Merchant Cash Advances

Merchant cash advance solutions

Merchant Cash Advances (MCAs) provide businesses with upfront capital in exchange for a percentage of future sales, offering a flexible alternative to traditional loans. Unlike conventional lending, MCAs structure repayment as a percentage of daily or weekly revenue, making them particularly useful for businesses with fluctuating income, such as retail, hospitality, and e-commerce.

Canopy enables financial institutions and fintechs to model, disburse, and manage MCA products with custom fee structures, repayment automation, and real-time revenue tracking.

Use Cases for Merchant Cash Advances

Revenue-Based Financing (Retail, E-Commerce & Hospitality)

A financing model where businesses receive an upfront lump sum and repay it as a fixed percentage of daily or weekly sales.
Features:

• Repayments automatically adjust based on revenue, reducing strain during slow periods.
• Factor rate-based pricing instead of traditional interest accrual.
• Supports daily, weekly, or bi-weekly remittance schedules.
• Integrates with payment processors and POS systems for seamless repayment tracking.

Try it out in your sandbox, refer to Postman collections in your partner workspace

Fixed Daily/Weekly Remittance MCA (Brick & Mortar & Service-Based Businesses)

A structured MCA model where businesses repay advances through fixed daily or weekly payments, regardless of revenue fluctuations.
Features:

• Simple, predictable payment amounts.
• No compounding interest—total repayment is fixed at the time of funding.
• Option to structure prepayment discounts or offer tiered fee structures.
• Can be combined with revenue-based financing for hybrid repayment models.

Try it out in your sandbox, refer to Postman collections in your partner workspace

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Any of the above can also be secured with collateral to mitigate risk exposure. Check out our Secured Lending documentation and API endpoints to get started with secured lending