The term ‘merchant cash advance’ refers to the purchase of a company’s receivables—the company receives a lump sum payment in exchange for making fixed monthly payments in the future.Merchant cash advances are a form of receivables financing, and revenue based financing. They are the most founder-friendly way for startups to fuel their growth, as there is no debt or dilution. With merchant cash advances, startups can convert their future revenues into upfront capital so they can scale faster, on their terms and without restriction.