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Merchant Cash Advance Industry Funded $254 Million in First Half of 2010

October 16, 2010
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The Merchant Cash Advance Resource estimates that approximately $254 Million dollars in Merchant Cash Advances were funded in the first 6 months of 2010.


Using anonymous inside connections, we were able to determine precise monthly funding volume from some of the top 20 major funding firms. Using existing UCC filing research, private data, and mathematical analysis, we were able to come up with the closest estimate of the industry’s activity. We will however give our figure a margin of error of $20 Million.


Our research also determined that funding volume increased by 35% in the 2nd quarter over the 1st quarter. This comes as no surprise as retail activity in January – March is traditionally weak.


Given the likely strength of the 4th quarter, the industry aims to hit approximately $600 Million for the year.


– The Merchant Cash Advance Resource

October Kicks Off Merchant Cash Advance Rush for Holiday Inventory Stock

October 15, 2010
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Every October, retailers eagerly plan their strategy to capitalize on the impending holiday consumerism. 2010 is much like last year or worse. The long lasting recession has caused wholesalers and distributors to eliminate much needed payment terms for inventory purchases. It has become extremely challenging for retailers to purchase the amount of inventory required for the holidays when Cash on Delivery is the only policy.

The profit on the sales will more than pay for the costs paid but if the cash isn’t there to buy the inventory in the first place, there’s a problem. Hence a major cash flow problem is inevitably created even for the most robust business.

That being said, Merchant Cash Advance companies will experience application overflow and marathon work hours. It is much like what accountants experience during tax season. The Merchant Cash Advance underwriting process tends to slow significantly in late November.

Business owners!: Poor credit, fair credit, good credit? There are options for all of you with a Merchant Cash Advance. From Starter Advances to Platinum programs. The next 4 weeks is a great time to look into and apply for funds before it may be too late!

We wish you all the best as the peak retail season approaches and as always, make sure you choose one of the reputable firms.

– deBanked

Direct Merchant Cash Advance Funders / Lenders

October 10, 2010
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Many ISOs are dabbling with funding their own merchants these days. The industry is maturing into a whole new generation of Broker/Funding hybrids. A great $10,000 deal might be worth your own private investment. 😀

The Merchant Cash Advance Resource has been compiling a directory of actual funding sources and invite you to be listed on our site. There is no cost and this site merely serves as an impartial central hub for industry information. This site receives over 100 visitors every day from ISOs, Funders, Merchants, Financial Firms, Processors, etc. Your company will receive widespread positive exposure to all the right people. If your company has a blog, we will link the feed right to your profile.

To be added, you must be an actual direct funder capable of showing us 5 recent UCC filings as evidence of your advances. We will also seek to verify your status with other insiders in the industry. Hybrid firms are acceptable as long as you also provide your own capital to clients. To be added, please e-mail us at info@debanked.com.

If you enjoy our site and wish to share information, stories, or news about the Merchant Cash Advance industry, you can submit your articles here to share with others.

New York Funding Race 2010

October 8, 2010
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New York State ranks in the top 5 for Merchant Cash Advance volume. We checked with the Secretary of state to find out just how many deals had been done in NY this year so far. Here is what we found:


1/1/2010 through 9/30/2010


  1. AdvanceMe                                          163 deals
  2. Merchant Cash and Capital                 144 deals
  3. First Funds                                           120 deals
  4. Strategic Funding Source                      50 deals
  5. 1st Merchant Funding                            40 deals
  6. Merchants Capital Access                     36 deals
  7. Business Financial Services                  31 deals
  8. AmeriMerchant                                      31 deals
  9. Max Advance                                         21 deals
  10. Capital For Merchants                           20 deals
  11. RapidAdvance                                       17 deals   (don’t always file UCCs)
  12. Snap Advances                                     14 deals
  13. Sterling Funding                                     13 deals
  14. Greystone Business Resources             12 deals
  15. American Finance Solutions                   12 deals
  16. Bankcard Funding                                  10 deals
  17. GRP Funding                                           9 deals   (don’t always file UCCs)
  18. Merchant Capital Source                         7 deals
  19. Centerboard Funding                               2 deals
  20. The Business Backer                               0 deals



Georgia Funding Race 2010

October 6, 2010
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Of the 20 major Direct Funding firms, who are the real players? Where do small businesses in Georgia have the best odds of obtaining capital? We checked with the Georgia Secretary of State to find out just how many deals each of these funders have done this year so far. Here is what we found:


From 1/1/2010 through 9/30/2010


  1. AdvanceMe                                    114 deals
  2. Merchant Cash and Capital             81 deals
  3. First Funds                                       35 deals
  4. Business Financial Services            34 deals
  5. 1st Merchant Funding                      25 deals
  6. Greystone Business Resources      18 deals
  7. Capital For Merchants                     17 deals
  8. Strategic Funding Source                15 deals
  9. RapidAdvance                                 14 deals (don’t always file UCCs)
  10. Max Advance                                   13 deals     
  11. Merchants Capital Access               12 deals       
  12. Merchant Capital Source                   9 deals
  13. GRP Funding                                     9 deals (don’t always file UCCs)
  14. AmeriMerchant                                  7 deals
  15. Snap Advances                                 5 deals
  16. American Finance Solutions              4 deals
  17. Sterling Funding                                 4 deals    
  18. Bankcard Funding                              4 deals
  19. The Business Backer                         3 deals
  20. Centerboard Funding                         0 deals  



Merchant Cash Advance Blacklist

August 5, 2010
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If you default on a Merchant Cash Advance naturally or by breach of contract, there is virtually no chance you will be able to obtain a Merchant Cash Advance in the future. 2008 was a particularly brutal year for Merchant Cash Advance firms. Not only had the recession weakened the most aggressive players but merchant fraud was abundant. 90% of the time this business is conducted by phone. Being vastly easier to obtain than a loan, many merchants rigged the process to get funding from multiple firms at the same time. Some would “go out of business” only to obtain more funds under a different name.

Merchant Cash Advance providers have stuck by their mantra of providing a simple process to their clients and have created solutions to prevent fraud. Industry groups such as the North American Merchant Advance Association provide a live database exchange of clients in default. A merchant’s most sensitive information is not revealed but public information such as legal name, dba, owner name, business address, and phone numbers (to name a few) are all stored in the database. Live funding activity is also shared in some capacity. For instance, if you apply to funding firm A and funding firm B at the same time but are funded by firm A today, then Firm B will automatically be alerted not to fund you.

These deterrents and live databases are not broadcast to the public and thus some businesses try to obtain additional advances after having defaulted on one already. If you are a merchant and you are trying to hide the fact that you currently have an advance or defaulted on one previously, you will not be successful in obtaining funds from another firm.

How Did Merchant Cash Advance Companies Get My Information?

August 4, 2010
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I used a Merchant Cash Advance program and now I am being solicited because of it. How did these companies get my information?

The Merchant Cash Advance industry is a competitive business. Most firms file a UCC-1 (public notice with your secretary of state) on your business to let potential creditors, lawyers, and other Merchant Cash Advance firms know your future credit card receivables have been purchased. This is customary for a loan as well, although the language in the filing is different.

Since this information is public, it is possible to request a list of all UCC-1’s filed by a particular funding company from the states. Each UCC-1 includes the DBA, Business Address, and Date it was filed. Computer programs or manual google searches can fill in the blanks and obtain the owner’s name and business phone number.

In just a few minutes, a competing Merchant Cash Advance firm or reseller can determine when you received funding and where you got it from. For the competition, It’s a free, easy way to create a marketing list.

The same can be done for traditional loans and equipment leases.

Am I Talking to a Broker? Does it Matter?

August 1, 2010
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Many merchant cash advance applicants have found the relationship structure of the companies involved confusing. Others who thought they understood it, later found out they were wrong. There are likely to be at least 3 parties involved in the process. Below is a breakdown of each and their role:

Cash Advance Provider: This is the company taking liability on the advance. They are the entity purchasing your future receivables at a discount. They also handle the decision making on approvals. It is very likely that they do not have an outbound marketing campaign or customer service department. They may rely on Brokers to bring in clients and service the accounts. The Cash Advance Provider pays a commissioned percentage of the advanced amount to the Broker for their services.

Cash Advance Broker: This is the reseller of the cash advance. Their business purpose is to acquire clients and submit their applications to the Cash Advance Provider for approval. They generally will also provide customer service. The Cash Advance Provider pays a commission to the Broker for every client of theirs that is funded. Brokers do not have to charge their clients for their “service” as the Cash Advance Provider is already paying them.

Credit Card Processor: In most cases, repayment of your advance depends on the Processor diverting a percentage of credit card transactions to the Advance Provider.

In order to do so, the Processor has to have contractual agreements with the Advance Provider. That is why in most cases, businesses are required to convert their processing to a new company. There is no Advance Provider that is compatible with all processors.

The Credit Card Processor performs it’s own risk analysis on the business as well. They want to ensure that your transactions are legitimate, secure, and consistent with the stated business model. Approval of an advance conditionally relies upon approval with the Processor.

This being known, some Advance Providers rely solely on Brokers to acquire clients and thus there is no way to apply directly with the Provider directly. For cost purposes this shouldn’t matter. The cost of the advance itself is the same whether a Broker is involved or not. However, SOME brokers charge additional fees for their service to the client themselves. They may try to convince you that it is the Cash Advance Provider’s fee, a set up fee, a reprogramming fee, a legal fee, etc. These are just disguised names for the Broker’s fee.

In some cases the Cash Advance Provider may charge up to $200 to file a UCC1 on the client’s business once the contract has been executed. Any amount higher than that is most likely not a necessary fee to be passed onto the client.

Clients should ask upfront with their account representative if any additional fees will be charged upon execution of the contract. Some will charge, some won’t. Whom the client decides to apply with is their choice.

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