Merchant Cash Advance Agreement | USA
Make a cash advance to a US merchant against its future credit card receivables with this template USA Merchant Cash Advance Agreement.
- The merchant sells to the cash advance company all of its right in a percentage of its future credit card sales for an immediate cash injection, until a specified amount has been paid.
- The purchase and sale of the credit card receivables constitutes a sale of accounts under the Uniform Commercial Code, which vests full ownership in the cash advance company. The merchant has no right to repurchase or resell the receivables.
- The merchant will authorize the credit card company to pay the credit card sales directly to the cash advance company until the specified amount is paid.
- The merchant also grants the cash advance company a security interest in its accounts, inventory, assets, property, all future receivables, and the proceeds thereof.
- The agreement also contains a Personal Guaranty form, to be given by the principal(s) of the merchant, who agree(s) to assume all of the merchant's obligations under the agreement.
- This USA Merchant Cash Advance Agreement template is a downloadable and fully editable Microsoft Word document.
Download Type:
Microsoft Word
Last Updated: 03-March-2021