Merchant Cash Advance: The Future of Funding

A merchant cash advance can be defined in simple terms as a loan offered to a business, in return for future revenue. Traditionally, business loans have to be repaid monthly with an interest rate, but MCAs generally are repaid daily or weekly from the credit card sales. This type of financing is especially helpful to small enterprises, which cannot otherwise qualify for funding in order to develop their business.

Funding the Future

Local businesses are essential for the economy as they offer meaningful jobs, encourage entrepreneurs and also help foster local economies, cultivating prosperity. Since the end of the Great Recession, small businesses have been in charge of creating a fair percentage of new jobs, accounting for two out of three new jobs in the private sector. 

However, oftentimes the local entrepreneurs are left with little to no choice regarding their funding opportunities. Funding is a key element of every growing business, especially small ones since capital is harder to acquire without a substantial amount of upfront investment. Traditional funding is hard to access for most companies due to the amount of requirements imposed by the banks in terms of longevity and turnover. In the past, the most accessible funding opportunity for small firms was through the credit cards of the founders. This option involves a major risk that the entrepreneurs are obliged to bear, as repayment is tricky from an accounting point of view. That is until the development of Merchant Cash Advance funding, allowing small enterprises to benefit from capital financing. Thus, small enterprises benefit from the availability of capital in order to invest, and lenders ensure a profitable conversion rate.

A new way of financing 

In the traditional corporate way, financing a firm can either be done through debt financing or equity financing. The first one involves obtaining a loan, and the second one refers to issuing stocks. Merchant Cash Advance does not fall under either of these categories. On one hand, capital is being borrowed by a company and it must be repaid with interest, which resembles debt financing. On the other hand, the repayment of the loan is dependent on the future performance of the company, which resembles dividend payment in the form of equity financing. This innovative source of financing gained its popularity due to being such a convenient funding alternative for small and medium sized businesses, given the unavailability of the traditional sources.

Find the best leads

As a provider of cash advance services, there are certain risks faced in financing small businesses if appropriate research is not conducted. The research process can be long and tedious, and specific information must be acquired in order to make an informed decision and proceed with the funding. That is why having access to a large database containing complete and detailed information provides security, as all the sorting is already done. We help small business owners in need of funding connect with you. Our database contains all the information you need on leads, fresh and aged, in order to ensure a successful reach.

Contact a representative from our team to discuss more about our Business Loan Leads, and find the best lead for your business needs. Don’t forget to make the most of every interaction you have with your leads.