Plain English Glossary

Funding Glossary

Every term you might encounter when applying for a merchant cash advance with Cashera Capital, defined in clear language.

Merchant Cash Advance (MCA)

A funding product where a provider purchases a percentage of a business's future receivables in exchange for an upfront lump sum. An MCA is not a loan. Repayment flexes with the business's earnings, and there are no fixed monthly payments.

Factor Rate

A fixed multiplier (typically between 1.10 and 1.50) applied to the advance amount to determine the total repayment amount. For example, a $1,000 advance at a 1.20 factor rate means $1,200 in total repayment. Disclosed upfront so total cost is clear from day one.

Holdback

The percentage of daily or weekly bank deposits automatically withheld via ACH for repayment of the advance. Because it is a percentage rather than a fixed amount, repayment naturally flexes with earnings.

ACH (Automated Clearing House)

The US bank-to-bank electronic transfer network used to deliver funding and collect repayments. ACH transfers typically settle within one business day.

Plaid

A third-party service that allows users to securely share read-only access to their bank deposit history. Cashera uses Plaid to verify earnings without storing bank credentials.

1099 Contractor

An independent worker who receives a 1099 tax form rather than a W-2. Includes freelancers, gig workers, sole proprietors, and self-employed professionals. 1099 workers are eligible for Cashera funding.

W-2 Employee

A traditional employee who receives a W-2 tax form. W-2-only earners do not qualify for Cashera merchant cash advance funding because the product is built for self-employed and gig workers.

Receivables

Money owed to a business by its customers or platforms. Future receivables are what a merchant cash advance provider purchases — the right to collect a percentage of incoming earnings until the advance is repaid.

Soft Credit Pull

A credit inquiry that does not affect the consumer's credit score. Cashera performs a soft pull as part of the application process so checking your eligibility does not damage your credit.

Underwriting

The process of evaluating an application to determine eligibility and terms. Cashera's underwriting is primarily based on bank deposit history and earnings consistency rather than credit score alone.

Lead Generation

A business model where applicant information is collected and forwarded to qualified funding partners. Cashera operates as a lead-generation and origination platform, which is why customer data is not retained long-term on the site.

Gig Worker

A person who earns income through short-term, on-demand, app-based work such as rideshare driving (Uber, Lyft), delivery (DoorDash, Instacart, Amazon Flex, Grubhub, Shipt, Spark), or freelance projects. Gig workers are Cashera's core audience.

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