Disclosures | Power Business Capital

Last Updated: January 15, 2026

Nature of Our Products

Power Business Capital provides merchant cash advances and revenue-based funding. These products are not traditional financing.

A merchant cash advance (MCA) is a commercial transaction in which a business sells a portion of its future receivables to a funding company at a discount in exchange for immediate capital. This is fundamentally different from traditional financing in several important ways:

Not a lending product: An MCA is not a financing arrangement. It is a purchase and sale of future receivables.
No interest rate: Because an MCA is not a financing product, there is no interest rate. Instead, there is a factor rate that determines the total amount to be collected.
Remittance, not payments: Collections from the merchant are remittances against the purchased receivables, not financing payments.
No fixed term: The arrangement concludes when the purchased amount has been collected, which may vary based on business performance.

How Merchant Cash Advances Work

When you receive a merchant cash advance:

You sell a portion of your future receivables at a discount
You receive the purchase price (funding amount) upfront
A percentage of your daily or weekly receivables is collected until the purchased amount is received
The collection rate is typically fixed, but the time to complete collection varies with your sales

Cost Disclosure

Before you accept any funding offer, we will provide you with clear disclosure of:

The funding amount you will receive
The total amount to be collected (purchased amount)
The factor rate applied
The estimated collection period
The daily or weekly collection amount
Any fees associated with the transaction

State-Specific Disclosures

California Residents

If you are a California business, you will receive disclosures in compliance with California's Commercial Financing Disclosure Law (SB 1235), including:

Total amount of funds provided
Total dollar cost of the financing
Term or estimated term
Method of calculating payments
Total cost as an annualized rate
Prepayment policies

New York Residents

If you are a New York business, you will receive disclosures in compliance with New York's Commercial Finance Disclosure Law, including standardized disclosure of financing terms and costs.

Virginia Residents

Virginia businesses will receive appropriate disclosures in compliance with Virginia's Commercial Financing Disclosure requirements.

No Guarantee of Approval

Submitting an application does not guarantee approval for funding. All applications are subject to our underwriting criteria, which consider factors including but not limited to:

Time in business
Monthly revenue
Bank account history
Industry type
Overall business health

Use of Funds

Funds provided through our products should be used for legitimate business purposes only. Common uses include:

Working capital
Inventory purchases
Equipment
Marketing and advertising
Business expansion
Payroll

Impact on Your Business

Before accepting funding, carefully consider:

The daily or weekly collection amount and its impact on your cash flow
Your business's ability to maintain operations while collections are being made
Alternative funding options that may be available to you
The total cost of the funding compared to other options

Questions?

We encourage you to ask questions and fully understand any funding product before accepting. Our team is available to explain all terms and answer your questions.