Thursday, October 25, 2007

Merchant Cash Advance Blog - 2007 Industry Funding Estimate

I have received several emails in recent weeks asking me what I think the current size of the merchant cash advance industry is. While there has been no formal report / survey ever conducted, I have done some informal research talking to several of the major players in the space (and have ideas of what most are doing) and I believe an accurate number for 2007 would be $1 billion in merchant cash advances funded in 2007. I estimate this number is up from $500 million in 2006 and will only continue to grow over time. Any feedback on this projection / estimate is welcome.


Anonymous said...

This is a very hard task to undertake, considering none of the companies are public you never know how inflated everyone's claims are. A few players are claiming $200M and more. if these claims are true it could be a little more than $1B. I think a better way to go about it is looking at the market place based on opportunities, how many businesses are likely to take the advance. Of course whoever has this model will not want to share it!

Anonymous said...

I resell as an mls of 2nd source and we are on track to do around 200m or so for 2007. from what i understand we are the largest originator of cash advance. who are the other players from the origination standpoint?

Anonymous said...

It is very interesting for me to read this article. Thanx for it. I like such topics and anything connected to them. I would like to read more soon.