Finance & Lending


04 24 2013

04 24 2013

Merchant Cash Advances on the Rise

Merchant cash advances gaining popularity

Merchant cash advances have been steadily increasing over the last five years. According to the Green Sheet, a new chapter is opening for the industry as analysts report the merchant cash advance market is expected to grow within the next several years. Green Sheet estimates that over the next few years alternative lending through merchant cash advances may reach $3 billion to $5 billion. The market is currently valued at $500 million to $700 million.

Alternative lenders provide critical options

recent article in Forbes interviewed several financing professionals and outlined how merchant cash advances have become more attractive to smaller organizations, now that costs have lessened and the alternative lending industry continues to grow.

Alternative lenders can provide crucial funding to small businesses that are turned down by banks. Some small business owners are even able to save their livelihood by taking out a merchant cash advance. Many small business owners experiencing trying times have used a merchant cash advance to turn their businesses around.

Merchant cash advances may help rescue businesses in need

The Forbes article profiles the tale of a restaurant owner in southern Vermont who underwent severe financial hardships after Hurricane Irene. After the storm struck the area the restaurant suffered from a slow season. To revive the business, the owner secured a business cash advance and was able to save the restaurant.

The restaurant owner was able to obtain the resources he needed even though traditional banks would not approve funding for his business. Since banks typically examine how long a company has been in business, the owner’s credit history, and how profitable the enterprise is likely to be, many smaller merchants cannot obtain approval for the money they need.

Alternative lending offers small business owners funding as the economy improves

For small business owners who desire to increase their revenue yet still face difficulties in getting approved for funding from banks, merchant cash advances are an increasingly popular option considering financing options sometimes remain tight for smaller operations. The slow but steady improvements in the national economy and consumer spending are likely to keep bolstering the alternative lending industry as more small-business owners seek to hire employees, lease more equipment, and expand their business.

Small business owners who are ready to expand their company and increase their revenue may want to contact National Funding about obtaining a merchant cash advance, working capital, or small business loan.


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