A secured advance is an advance against future receivable income for your business. The advance is geared on terms up to 3 years with no pre-payment penalty and no balloon payment.
Approvals are based off of annual revenue potential of the business and terms are based off a risk assessment of the business.
Liens are recorded and released upon payoff of the advance and may be used to as a credit line again if needed.
A merchant cash advance (MCA) is a type of business financing where a lump sum payment is given to a business in exchange for a pre-agreed percentage of future revenues. MCA's typically have shorter payment terms and smaller regular payments than business installment loans.
Small Business Owners are able to apply for MCAs and receive upfront cash quickly.
Businesses then pay back the MCA with a percentage of daily or weekly revenues. Meaning that the more transactions a business does, the quicker it's able to repay the MCA.
The difference between a secured advance and unsecured advance is rates are lower, terms are longer and most generally will report to your business credit because of the recorded lien.