The lump sum paid upfront
Cash capital is generally used for short-term purposes, providing a lump sum upfront in exchange for a portion of the company’s future receivables. This type of financing involves selling either business bank account receivables or merchant processing account receivables. However, it’s important to note that merchant cash advances are among the costliest funding options available and aren’t as popular among angel or private investors. Cash advance capital is specifically intended for grow capital, not for startup situations.