The business/merchant cash advance industry is one of the fastest-growing financial services markets in the country today. Offering merchant cash advance services as an independent agent provides you with a rare opportunity to get involved in a highly lucrative industry, while incurring low (or no) startup costs.
How It Works
Businesses who accept credit card transactions have a reservoir that can be leveraged on demand to expand their business or to create a much-needed infusion of working capital. Business owners work with companies like MCA business funders to get a cash advance against their future sales. Some service providers like Green offer same day funding for your business.
An Advance is Not Based on Credit…
…But on Current Business Health
The notion of an advance (vs a loan) is important to understand. A merchant cash advance is not a loan as such, but a cash advancement against the business’s future credit card receivables. This is an important distinction because, unlike a traditional business bank loan, a cash advance does not get reported to credit bureaus. This means you’re providing capital to a business in a way that will not affect your client’s line of business credit or their ability to participate in additional lending arrangements.
Merchant cash advances provide a rare advantage to business owners and agents alike: they are quicker and simpler to approve than a traditional buisness loan because they are based on the recent health of the business (last three months of credit card sales), and not on the business’s past credit history. Bad credit is often not a problem when approving MCA clients.
Demand and Returns are High
In the small business world, demands for working capital are extremely high, with equally high returns. We are compatible with most credit card processors so if your client is with Crescent Processing, or PsBill, they wont need to switch processors! 85% of our business at MCA is repeat business, which tells you something about how successful this lending model can be for small businesses! Agents can easily minimize their risks because in a typical scenario, you are only advancing modest amounts of capital to a broad range of healthy businesses with strong cash flows.
Startup costs for brokers are minimal. All you have to do is locate a modest office space with room for a desk and telephone—or work from home. All that’s left is to advertise your business and start accepting applications! Your main priority as an agent will be the art of qualifying your customers.
But where will you get the capital to provide cash to your clients? This is where a partnership with MCA comes in.
MCA Will Provide the Funding You Need
When you partner with MCA, we provide the capital you need to get started. As your business grows, you may need to hire a sales staff to field the increasing number of inbound calls at your ISO office. Since just about every small business needs more working capital, the merchant cash advance business provides a highly valued commodity.
Call us at 877.690.4882
to speak to an MCA representative.
Ask about our agent and ISO opportunities!