Welcome To Merchant Cash Advances Blog

Hello all and welcome to the Merchant Cash Advances blog. This blog is dedicated to providing information and ongoing updates to the Merchant Cash Advance industry for both clients and sales agents (resellers) of the industry. We welcome all input and encourage communication from all to promote the industry and fairly represent the financial service that we offer.

The Merchant Cash Advance (aka MCA) has become increasingly popular over the past four years as a viable finance option for many small- and medium-sized businesses. While the industry as been around for over a decade the economic downturn and credit crisis that started in 2007 has resulted in tremendous growth. This tremendous growth brought numerous new MCA providers and thousands of resellers into the marketplace.

As the United States economy continued its collapse throughout 2008, the MCA providers who made poor decisions on which clients to finance paid the price with dramatically increase defaults. The resulting shakeout in the industry has left a core group of MCA providers, including American Finance Solutions.

To give an overview, a merchant cash advance is NOT a loan, but a factoring product where a business sells a portion of its future credit card receivables for cash today. The MCA provider offers an alternative financing option to provide working capital to small- and medium-sized businesses that do not qualify for under traditional financing. To summarize, a Merchant Cash Advance provides fast, low-documentation funding that is uncollateralized for businesses. The premium of this service is more expensive than traditional financing given the risk associated with financing.

Our industry has seen various website and blogs that come and go on the industry over the years. As the CEO of a mid-tier MCA provider who has been around for the past three years as a hand-on manager my goal is to provide unbiased information about industry. As this blog evolves it should will become the prominent resource for the industry for all to comment, educate and gain information on product and those who benefit from it.

Please email me with any questions, comments, etc. about this blog and the merchant cash advance industry. I look forward to developing this resource with your input sent to me at scott@americanfinancesolutions.com.