The merchant cash advance industry extended capital to small businesses, taking in $3 to $5 billion in revenue in 2015, according to the Center for Financial Services Innovation’s 2016 Financially Undeserved Market Size Study. The Great Recession, which was caused by the financial crisis that started in 2007 and the subprime mortgage crisis in the U.S. that continued through 2009, ended with the collapse of the world economy’s banks and a severe loss of valuable assets. Due to the recession, bank regulations became stricter and fewer people, especially small businesses, had a more difficult time getting loans, mortgages, and credit. […]

If you have good credit card sales but your business hasn’t established itself long enough to qualify for a traditional loan or you need cash and you don’t have great credit, consider a merchant cash advance . A merchant cash advance (MCA) is a quick way for small businesses to get the capital they need. If you are looking for a convenient way to grow your business or temporarily sustain cash flow, get a merchant cash advance. How a Merchant Cash Advance Works A MCA is an advanced payment against the future credit cards sales of your business. It is […]

For many, the merchant cash advance is surrounded by questions a reputation for high fees – a business’ last option. But experts are saying it is time for businesses and lenders to take another look at the merchant cash advance. It might be more helpful than was previously believed. The Lending World Has Changed “The merchant cash industry first started as a product for unbankable clients,” explained Andrew Mallinger, COO of PIRS Capital, in a recent interview with PYMNTS. “It was for restaurants that didn’t have collateral or the credit score to apply for a bank loan.” However, the rise […]

Startups need capital to expand, but getting funds isn’t very easy for a starting business. Fortunately, today enterprises have the alternative of acquiring capital through financing firms like firstamericanmerchant.com. One product we gladly offer is the merchant cash advance. An MCA is technically a business loan, but more of an advance. The lender uses your oncoming future credit card sales as an asset. Therefore, you simply get an advance amount which you pay back as a portion of your firm’s day-to-day credit card revenue. So there are no collateral requirements for this loan because already a percentage of your debit/credit […]

If there is one truth you can rely on in running a business, it is to expect the unexpected. Unfortunately, many business startups fail to prepare for the very real barriers to growth. If a business is not careful, many of these “hidden” costs can result in delayed profitability or, worst case, shutting down the possibility. Consider the following common unspoken expenses many businesses overlook, so your business can avoid being one of the many new establishments that closes before they hit the 5-year mark. 1.      Permits and Licenses For many business types, it all starts with permits […]

Business loans and Merchant cash advances are the two primary commercial financing options assisting micro-businesses with working capital today. And while each of them can be a great way to obtain business funding, the two products have very different structures. To help you draw the line between cash advances and small business loans, here’s an in-depth comparison of the two. The Fundamental Differences Business Loan – just like you would seek funds for a new automobile or home, there are also loans meant for business. They usually have fixed repayment terms (say monthly installments) and pre-determined interest rates. A Merchant […]

Sometimes following trends may incur you avoidable expenses. For example; the sudden increase in the number of companies applying (and qualifying) for merchant cash advances may push you into making rush borrowing decisions you might later regret. These quick cash options are known to cost merchants dearly if not well scrutinized during selection. Merchant Cash Advances, for instance, carry triple-digit annual percentage rates (APRs) — which is the gross cost of a loan, plus all fees. These added charges along with the daily repayment schedule often affect cash flow. And in worst cases, you may end up in a debt […]

The news is everywhere on the internet; how online lenders are providing quick micro-businesses funding to all companies including those with bad credit but have steady cash flows. Yes, it’s true, web-based funding institutions are now giving cash advances to the broad group of small businesses that formerly found a difficult time meeting the criteria for business bank loans. However, not all shiny-looking deals will mean golden offers. This kind of business financing is most times doubtingly ethical and very expensive. So how do you win a business cash advance deal without getting ripped off? Many lenders in this new-fangled […]

Taking a small business to the next level isn’t easy at all. No matter how experienced you are, you have to overcome several challenges on your way so to be able to grow and expand your business. Access to working capital such as a cash advance is one of the most important things in this regard. This article will tell you when a Merchant Cash Advance (MCA) can be the right option for you to choose. What Is a Merchant Cash Advance (MCA)? An MCA isn’t a loan as many think. In fact, an MCA is simply a sale. The […]

Since the Great Recession, it has been extremely difficult for small business owners and business startups to find traditional lenders willing to work with them. This has made it very challenging for businesses fund growth, and for entrepreneurs to turn their business idea into a reality. Over the last few years, the merchant cash advance (MCA) has become a go-to alternative business funding option – and continues to gain popularity. What is a merchant cash advance? Contrary to popular belief, a merchant cash advance – also known as a business cash advance – is not a loan. It is a […]