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Unlike traditional loans that require fixed monthly payments, MCAs are repaid based on a percentage of the business's daily credit card sales or overall revenue. This structure makes repayments highly adaptable to fluctuations in the business's cash flow Merchant Cash Advance. When sales are strong, the business will make larger payments, and when sales are low, the repayments automatically decrease, preventing the business from experiencing financial strain. The repayment is also often automatic, directly deducted from sales, which eliminates the need for manual scheduling or administrative effort.