Top 10 MCA Funders
Whether you need working capital to grow your business or navigate through tough times, chances are there’s a merchant cash advance option out there that will fit your needs.
Here is our list of the Top 10 direct funding companies which provide merchant cash advances and possibly other products like short term loans. We do have a separate list for lenders who provide business term loans and lines of credit.
The list was determined based on volume, reputation, experiences with them, client reviews and product terms.
For our full list of business funding companies click here.
What is a Merchant Cash Advance(MCA)?
A merchant cash advance (MCA) isn’t technically a loan, but rather a cash advance based upon the true sales combined with credit card sales of a business. A small business can apply for an MCA and have an advance deposited into its account fairly quickly.
Merchant cash advance providers evaluate risk and weight credit criteria differently than a banker. An MCA provider looks at the daily true sales deposits and credit card receipts to determine if the business can pay back the funds in a timely manner. Basically, a small business “sells” a portion of future receivables(sales) or credit card sales to acquire capital immediately.
Rates on a merchant cash advance can be much higher than other financing options and depending on the company, can be prohibitively high. It’s critical you understand the terms you’re being offered so you can make an informed decision about ROI.
How to Know if a Merchant Cash Advance is Right for Your Business?
When does it make sense for a business to use a merchant cash advance? An MCA is an option when a business needs access to capital quickly to take advantage of an opportunity to purchase inventory at a discount, a special marketing opportunity, or other short-term capital need. And, because credit requirements are less stringent, it could be an option for a business that does a lot of credit card transactions, but might have less-than-perfect credit.
This is not an endorsement for these funders/lenders so please perform your own due diligence before working with them.