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Questions and Answers
What is a Merchant Cash Advance (MCA)?
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?
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?
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?
Are MCA payments generally made monthly over a period exceeding 24 months?
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Which of the following is a characteristic of MCAs?
Which of the following is a characteristic of MCAs?
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