Merchant Cash Advance

Merchant Cash Advance is something of a PayDay loan. You borrow money against your future credit card revenue. The companies that make these types of loans, review your annual credit card processing volume and determine how much they will loan you. While credit is always reviewed, the companies that make these types of loans are willing to take a risk on people with less than stellar credit. The reason behind this is because they charge a very heavy percentage in order to make the loans and they have direct access to your checking account so funds are debited automatically- before you receive your credit card deposits.

At Total Merchant Concepts, we have an MCA product available. We highly discourage the use of the product and we always advise you to visit your financial institution first! But if you find yourself in a place where you have decided to move forward with a MCA product -- we will be happy to help you make the best possible decision and still keep you processing with great rates and unparalleled service!  Contact Our Team for more information.


  1. Tighten Your Budget: Many times, we can work our way out of a tight financial spot by really taking a look at the places where we are spending money. Little items add up and when times get tight, you will want to look at saving before you look at borrowing.

  2. Check With Your Suppliers: Times are tight for everyone, however it might be worth it to ask for some credit line extensions - can a 15 day pay be moved to 30? (and so on). Many businesses are able to work with you if you keep the lines of communication open!

  3. Increase Sales: This is not always an easy thing to do, but when you first started your business, you had a passion for making sure things worked out! Reignite that passion and work on revving up your sales to add more revenue!

  4. Check With Your Financial Institution: They may have a short term loan that will help you through a tight spot without the high percentage rates associated with MCA


  1. WORK WITH A TRUSTED PARTNER -- your current credit card processor may have a workable option for you that will not require changing processing companies.

  2. READ THE AGREEMENT: Read the fine print- do not be in such a hurry to get the cash that you fail to do your homework! These loans are dangerous and you need to know what you are getting yourself into BEFORE you sign on the doted line.

  3. DO THE MATH: Calculate what you will be paying back in order to gain your cash advance and ask yourself the question; is it really worth it?

 BenefitsBenefits: Merchant Cash Advance loans are easier to qualify for and the approval process can usually take less than 2 weeks. Merchants are able to levy their future credit card processing activity to gain immediate capital for various needs- inventory, employee costs etc. Because the loan is tied to your processing volume, once the loan is paid off- it is relatively easy to gain additional loans in the future.

 DownsidesDownsides: Because Merchant Cash Advances (and the companies that provide them) are not governed by traditional lending rules and regulations, they are able to get away with charging extremely high percentage rates for their service. The nature of the business is such that merchant cash advance companies go out of business all of the time and merchants who find themselves in the middle of the approval process when one of these companies does go out of business are stuck trying to resubmit their applications elsewhere. Often times, merchant advance companies require that you process credit cards through their own provider and the credit card processing rates of these ‘preferred processors’ can be inflated. Once you enter into a merchant cash advance agreement, you immediately reduce your cash flow since a good percentage of incoming credit card charges will be going towards paying off the loan; careful planning can mitigate the risks associated with the reduced cash flow. Many companies who find themselves in the financial situation that would have them considering a merchant advance, are in trouble and this tends to be a last resort type of loan- often times, the companies who partake of merchant cash advances soon find themselves in an even deeper financial ditch.