A Merchant Cash Advance Loan in USA, or MCA (alternatively referred to as a Future Receivables Purchase and Sale Agreement), is a loan made to a business in exchange for a fixed percentage of future credit card sales at a discount. The business must repay the advance until a greater amount (purchased amount) is paid in full than the specified amount (purchase price). This process is unique in that it allows for flexible payments (a percentage of credit card or overall sales) that fluctuate in the future in accordance with sales revenue. The “factor rate” is the difference between the large upfront payment and the specified amount (purchase price) or payback amount. Merchant Cash Advance Loan in USA are not calculated on the basis of principal and interest rates; rather, they are calculated on the basis of a flat discount or factor cost. Unless expressly stated in your merchant cash advance loan agreement, there is no early payment discount for repaying the advance in full early (check your repayment terms in your agreement).