Merchant Cash Advance (MCA) and Sales Process Training Quiz
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Questions and Answers

What is a Merchant Cash Advance (MCA)?

  • A line of credit provided by a bank.
  • An investment made by venture capitalists in a business.
  • A lump sum payment to a business in exchange for an agreed-upon percentage of future receivables. (correct)
  • A short-term business loan with fixed interest rates.

    • Are MCAs considered loans with collateral attached?

  • True
  • Partially true
  • False (correct)
  • Depends on the business size

    • What is the basis for determining the amount of funding in an MCA?

  • Length of time the business has been operating
  • Average incoming revenue in the form of deposits (correct)
  • Credit score
  • Number of employees in the business

    • Are MCA payments generally made monthly over a period exceeding 24 months?

    <p>False</p> Signup and view all the answers

    Which of the following is a characteristic of MCAs?

    <p>No loan payment books</p> Signup and view all the answers

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