In 1999, only a handful of providers offering merchant cash advances (MCAs) existed. In 2009, that number had increased to more than 50. For business owners frustrated at being turned down for loans by traditional lenders, MCAs offer an alternative source for acquiring business capital. But how are MCAs changing the business funding landscape?
Changing the Face of Business Funding
In the past, businesses seeking access to quick capital had very few alternatives if banks and lenders declined their loan applications. MCA providers are transforming the business funding landscape by creating diversity and competition.
Diversity Among Providers
With this increase in providers, business owners need to be aware that not all funding sources are the same. Business owners should consider the following characteristics when comparing MCA providers:
- Speed – How long does it take to process and approve an application for a cash advance?
- Payment Terms – MCAs work by purchasing a portion of a business’s future receivables. How much is the total purchase price? What is the percentage of daily receivables purchased?
- Information and Documents Required – Many MCA providers ask for a credit card history and gross revenue reports for evaluation.
- Help and Support – Communication is key. You need a provider that will quickly address your questions and concerns.
Forging a Funding Future
MCAs are stepping up efforts to increase public awareness of their services, and collectively, they are forging a funding future for many business owners. Knight Capital Funding is an industry leader of Merchant Cash Advances. Contact us today for more information on how an MCA can help your business grow and thrive.