Overall, the average repayment time frame for a merchant cash advance is eight to nine months—this period, however, can also be as short as three months and as long as 18 months.
That said, unlike most business loans, which have fixed repayment periods, the time it takes to pay off a merchant cash advance will vary.
If your financing agreement allows the merchant cash advance company to take a larger percentage of your daily credit card sales, you’ll pay your MCA off faster. On the other hand, if the daily retrieval rate is low, your MCA will take longer to repay.
The exact time will depend on the regularity of your debit and credit card sales. If you have a day with no sales, the merchant cash advance company cannot deduct repayment that day. If you have several such days with no sales, that will end up extending your overall repayment time.