Tuesday, September 2, 2008

Merchant Cash Advance mentioned in MSNBC / Entrepreneur.com article

msnbc.com mentions the merchant cash advance product in a recently featured article entitled Control Your Cash Flow which talks about how businesses can reduce their vulnerability during this recent credit crunch. One of the ways it talks about how businesses can do this is to "Raise capital in innovative ways other than traditional banking." and specifically mentions about a merchant cash advance, namely "If you accept credit cards, there is something called a merchant advance where a third party will come in and review what your revenues have been and advance you capital today that you pay back in anticipation of future credit card receipts." This article appears to be syndicated from Entrepreneur.com and further backs up the idea that the merchant cash advance product has become a mainstream, accepted form of alternative financing for small to medium size businesses.

1 comment:

Anonymous said...


In your professional opinion, how does this current credit crisis affect the cash advance industry? As more and more financial institutions and banks close down making it more difficult for business owners, where does the cash advance industry fit in the future of this economy?

If a government bailout is granted - is that a good thing for this industry? If so, how? Or does this industry keep going strong even if the bailout is not granted? If it does, I'm interested in knowing how this industry would continue to grow.

Does this industry have a good 2 years left of lending to business owners? Or is this an industry that has more than 5 years of going strong?

Your opinion is greatly appreciated.