Merchant Cash Advance Companies Coming And Going

While a day doesn't go by that you hear stories of new companies popping up in the merchant cash advance space, I think you are also going to start seeing some merchant cash advance companies exiting the space and/or going out of business. For example, I've heard rumors that Acacia Funding has or is about to exit the merchant cash advance space.

I don't think most people realize the complexity and risk of this business. On top of that, companies are paying commissions out to brokers and agents that make it virtually impossible to turn a profit. Unfortunately some of these companies (and agents, brokers, ISOs that sell for them) will learn the hard way.

As an agent, you want to make sure you are working with a company that has the proper experience. High commissions by someone entering the industry may seem attractive, but a) it can't last long b) if they go out of business, you will most likely lose the backend residual associated with the deals you brought them.

AmeriMerchant has been in the merchant cash advance space for over 5 years and we have a very good understanding of what works and what doesn't and every indication shows by our explosive growth that we will be here for the long term. If you are a reseller / agent / broker for a merchant cash advance company, you want to make sure they have a viable business plan and they will be here for the long run too, unfortunately many will not.