In 2013 the merchant cash advance market was lending around the $500 million mark.  As of today, that number has increased to well over $3 Billion.  There are many reasons for this.  What was once thought of as a fly by night industry has now blossomed into one of the more popular options for small business owners.  With more options to choose from and stronger competition, the market has weeded out some of the less reputable companies and has become a much more trustworthy option.  Merchant cash advances have many differences from that of a bank loan.  Here we’ve outlined some of the biggest reasons for the rise of the merchant cash advance.

Lower Costs

When merchant cash advances first became available, there were heavy fees involved.  With the growth of the industry and with more reputable companies providing this type of funding, the costs have dropped significantly.  Once considered a last option, merchant cash advances are now considered a go to for small business owners in need of fast cash.  Due to their shorter repayment cycle, the costs involved with a merchant cash advance have become extremely competitive with bank loans while offering several other advantages.

Saving Businesses

There are now endless testimonials and success stories that outline how merchant cash advances have helped businesses not only survive, but flourish.  With more examples to base their decisions on, more small business owners have decided to take what has now become a much smaller risk.  There are companies that have turned themselves into large enterprise companies with the help of a merchant cash advance. Download this case study as an example.

Economy

With the drop in the nation’s economy, it has become increasingly difficult for small organizations to obtain funding.  Banks are hesitant to hand out smaller loans and have shown to be unwilling to take a chance on small businesses.  Merchant cash advance lenders specialize in small business and have recognized the opportunity to work with these companies.  In a time when big business rules, merchant cash advance lenders have put their confidence in America’s small business owners.

Requirements

Bank loans can have a seemingly endless set of requirements to become approved for funding.  At a time when the majority of the nation has what is considered fair to bad credit, merchant cash advances offer an opportunity for small business owners to right the ship.  MCA lenders have recognized that credit should not be the only qualifier as credit scores can be affected by many different factors.  If you’re doing steady business via credit card, you have a great chance to be approved for a merchant cash advance.

Specialization

Instead of having a broad focus that encompasses all small business, many merchant cash advance lenders have begun to focus on specific industries.  With a greater knowledge of the specific industries, lenders have been able to provide better advice on how and when to use funding.  With this specialization, business owners have become more confident in their borrowing decisions and this has translated into more businesses willing to take a chance on alternative funding.

Transparency

One big reason for the increased confidence in merchant cash advances has been the willingness for lenders to be more transparent about their fees and loan repayment structure.  Any reputable lender is going to be up front with all costs and willing to answer any questions before you sign on for your funding.  With the increased clarity, small business owners have improved their ability to repay without damaging their business.  These success stories have been shared throughout the small business community and encouraged others to follow suit.

Where To Turn?

When looking for a merchant cash advance lender, the prevailing top priorities have been reputation and specialization.  Of course you want a lender that is a proven commodity, but just as important is knowledge within your given industry.  Quikstone Capital Solutions specializes in restaurants, specialty retail, auto repair shops, salons, pool service companies and several other business models.  With a strong reputation, Quikstone Capital Solutions has proven to be a great partner to small business owners.