Merchant cash advances (MCAs) are a fast-growing niche within private credit, offering high-yield potential through short-duration, daily-remitted financing deals. These instruments provide capital to small businesses in exchange for a fixed percentage of daily revenues, creating consistent cash flow for lenders and funds. At StableYield, we pool investor capital into diversified portfolios of MCA deals that have historically produced gross returns of 20–30%, before fund expenses and fixed investor payouts. This article dives into how MCAs work, why they generate such strong returns, and how we manage risk through partner selection, diversification, and underwriting discipline.