The merchant cash advance was first created to offer small business owners an alternative to the traditional business loan. Since some small business owners didn’t have the credit scores or the collateral that it took to secure bank loans, merchant cash advance providers developed a product that qualified merchants could benefit from, allowing them to sell their future credit card sales at a discount and use the money that they receive to improve their businesses.

Ten years ago, when the merchant cash advance first appeared on the business financing scene, the United States was experiencing “government surpluses, low unemployment, near zero inflation, and solid growth of national income.” At that time, it seemed that only small business owners with poor credit had a hard time getting bank loans. But years went by and eventually, things began to change.

Home values declined, commodity prices rose and banks tightened their lending standards, making it difficult to qualify for bank loans. To top it all off, as the economic downturn has turned into a full-blown recession, the unemployment rate reached its highest in 17 years, according to the New York Times. And as more and more Americans lost their jobs, consumers began spending less and less, causing an even greater, widespread need for business financing.

Now, increased amounts of merchants are turning to the merchant cash advance, and the merchant cash advance industry has grown t from having only one main merchant cash advance provider, which advanced only about $10 million dollars a year, to one that funds over $700 million dollars a year. In fact, in one year alone, we funded over $40 million dollars to small business owners like you.

The merchant cash advance allows you to sell your business’s future credit card receivables and use the cash that you receive to grow your business. It is repaid as a small percentage that is deducted from each credit card sale that your business processes. This percentage is automatically deducted, eliminating the need to make fixed monthly payments and allowing you to pay less when your business’s sales are slower and/or lower.

As more small business owners find themselves ineligible for traditional bank loans, the merchant cash advance remains an excellent alternative, featuring minimal requirements. Not only is it easier to qualify for a merchant cash advance, but the process is simpler, faster and you can renew your merchant cash advance every three to four months.

Both the merchant cash advance and the traditional bank loan provide funds to small business owners. With both options, the funds must be repaid and borrowers must meet specific requirements before being approved. They were also both developed in attempt to promote small business growth, by providing funds to small business owners who do not have the extra cash on hand, in the hopes that these funds will help their businesses to grow and develop, as small business is a very important part of our economy.

Still in the midst of various similarities, the merchant cash advance and the traditional bank loan differ in many ways, because when you choose a merchant cash advance, you get benefits that you just cannot get through a bank.

Now that you know everything you need to know about the merchant cash advance, if you feel it is right for you, complete our online application in order to have one of our funding specialists contact you with more information, and to have cash in your account in as little as two weeks.