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Instant Funding: Cash Advances Trend in Merchant Services

Business owners know how cash flow and timely funding are vital for them. Without continuous access to funds, you can’t pay your bills, meet payroll demands, or take your business to the next level. Instant funding is an immensely important factor in all this. What about cash advances? Where can you get them easily? Just read below and you’ll know.

Getting Funds Instantly
The payments ecosystem is undergoing major changes these days. Increasingly, shopping over the internet and via mobile device, mobile payments and free terminal deployments, electronic loyalty programs and new funding options like a merchant cash advance (MCA) are becoming mainstream.

Instant funding of merchant account is turning into the next big merchant service trend. It’s like real-time payments. Think of it in the context of accepting faster credit/debit card payments. Instant funding is new and offers an innovative solution to fund transfer directly to eligible Visa debit and prepaid cards through electronic transactions.

  • According to a recent The Small-Business Opportunity report:
  • 31% of small business owners getting disbursements from merchant acquirers and lenders received the funds through direct deposit
  • 30% got payments by check last year
  • 18% got payments via debit cards
  • 14% got them via digital wallets
  • 24% received disbursements using PayPal accounts
  • These types of disbursements to small businesses account for 96 million transactions, thus making a total of $645.2 billion on a yearly basis

In the survey, a small business was considered the one that made $10 million or less in yearly revenues.

Finally, taking into account the developments in the field, such as U.S. small business owners becoming more familiar with real-time payments via PayPal and Zelle, demand is going to grow in the years to come.

Instant Funding & Cash Advances
Let’s start with instant funding. Well, this increasingly popular merchant service allows businesses to seamlessly accept payments and disburse funds to customers. So, lending companies can say goodbye to their outdated checks and slow ACH transactions. As a result, consumers won’t have to spend days on waiting for their funds to become available.

Importantly, cash advances offered by a respectable alternative online lender and payment processor like First American Merchant are a fast, innovative merchant business funding option offering a quick access to working capital. With a true business financing specialist like FAM, you can get a merchant cash advance at the best rates, without hassle, and without delay.

Well, thanks to instant approval, merchants get a unique chance to differentiate themselves in the marketplace. How? You just get an opportunity to deliver quick, convenient as well as secure funding experiences to your clients.

What instant funding usually does is to cut off waiting times, provide batch deposits in just a few hours, initiate deposits on the weekend and on holidays, settle batches from the user’s terminal or POS, without requiring any special equipment.

To sum up, instant funding is gaining traction since it eliminates a decades long pain points for merchants. Namely, it helps you avoid traditional ACH transfer processes, which can require days to wait without being sure whether the transactions will hit your bank account.