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BUSINESS FINANCING GLOSSARY

Holdback

In an MCA, the fixed percentage of daily or weekly card/bank deposits the funder withholds toward repayment. It flexes with your sales volume.

Go deeperMCA vs. RBF ▸

Related terms

Merchant Cash Advance (MCA)→A lump sum repaid as a fixed share of daily/weekly card or bank deposits, priced with a factor rate. Fast and credit-flexible, but often the most expensive option — check the effective APR.Total Cost of Capital→Everything you’ll pay for financing — interest, fees, and any holdbacks — over the full life of the deal, not just the rate. The number that actually matters.

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