Merchant cash advances and factoring loans can fill a critical role

Forbes' Maureen Farrell took a skeptical view of merchant cash advance lending in her January 2008 article Look Who's Making Coin Off The Credit Crisis, citing the rise of Merchant Cash Advance (MCA) shops as the recession started. In that report she pointed to predatory lenders relieving entrepreneurs of precious capital at annualized rates as high as 70-90%.

However, much has changed on the alternative lending landscape in the five years since Farrell's opinion appeared. Analysts report that both the cash advance and the invoice factoring sectors are increasing in prevalence and popularity, with business growing in both sectors at double digit levels each year. Read More >>>