Merchant Cash Advance Agreement

# Merchant Cash Advance Agreement This Merchant Cash Advance Agreement ("Agreement") is entered into as of ___________ by and between: **Provider:** ___________, a ___________ with a principal address at ___________ ("Provider"); and **Merchant:** ___________, a ___________ organized under the laws of the State of ___________, with a principal place of business at ___________ ("Merchant"). --- ## 1. Definitions - **"Purchase Price"** means ___________, the amount Provider pays Merchant for the Purchased Amount. - **"Purchased Amount"** means ___________, the specific dollar amount of Merchant's future receivables that Provider is purchasing under this Agreement. - **"Factor Rate"** means ___________x, resulting in the Purchased Amount described above (Purchase Price × Factor Rate = Purchased Amount). - **"Specified Percentage"** means ___________% of each day's/week's gross receipts or the Fixed Remittance Amount described in Section 3.2, remitted to Provider until the Purchased Amount is collected. - **"Receivables"** means all present and future accounts, contract rights, payment intangibles, and proceeds from Merchant's business operations. --- ## 2. Purchase and Sale of Receivables 2.1 **Sale.** Merchant hereby sells, assigns, and transfers to Provider, and Provider hereby purchases from Merchant, the Purchased Amount of Merchant's future Receivables for the Purchase Price stated above. This transaction constitutes a true sale of receivables and not a loan. Provider is purchasing a specific dollar amount of Receivables, not a time-based obligation. 2.2 **Disbursement.** Provider shall advance the Purchase Price to Merchant by ACH or wire transfer to Merchant's designated bank account within ___________ business days after this Agreement is executed and all conditions in Section 10 are satisfied. 2.3 **No Fixed Term.** Because this arrangement is a purchase of receivables and not a loan, there is no fixed repayment term or maturity date. The Agreement concludes when the full Purchased Amount has been remitted to Provider. --- ## 3. Remittances 3.1 **ACH Authorization.** Merchant hereby authorizes Provider to initiate ACH debits from Merchant's designated bank account (Account ending in ___________ at ___________) on the schedule described below until the Purchased Amount is fully remitted. 3.2 **Remittance Method.** The parties agree to use the following remittance method: ___________ 3.3 **Fixed Remittance Amount.** If a fixed remittance method is selected, the amount per business day or week shall be ___________.