In the current lending freeze – merchant cash advances are being looked at as an alternative source of business capital and are seeing a big spike in business.

Anyone who has tried to get a loan recently knows the lending institutions are becoming increasingly reluctant to give out business loans. It is being labeled as a lending freeze or a credit crunch; whatever you call it, it is difficult for business as usual in today’s economy.

Financial institutions are being hit hard. However there is one financial market that is thriving during this economic downturn; the merchant cash advance industry. Businesses that are having a hard time getting the working capital they need are turning to this business loan alternative. One of the key differences between a merchant cash advance and a business loan from a bank is that while traditional business lenders look at your past credit history, merchant cash advances look at your future sales potential as the major deciding factor for your loan. Businesses that have poor credit history or lack of collateral are turning to Merchant Cash Advances as well. Sometimes called a “bad credit business loan” a merchant cash advance offers a real solution for businesses suffering in these harsh economic times.

When asked about his business; The President of Merchant Resources International answered “We are very fortunate to be in position to help these struggling business owners. We are also fortunate to be in a business that is doing so well in this economy.” He continues “I have actually seen a substantial increase in my business over the past several months. People who are having a hard time trying to get a business loan are turning to me.” He concludes; “Businesses who have never considered getting a merchant cash advance in the past are returning again and again. It is a solution that works.”

How merchant cash advances work;

• They review your credit card receivables to determine the loan amount.
• Upon approval, they deposit the loan amount directly into your bank account in about 7-10 days.
• Take a percentage of your daily credit card sales to pay off the loan.

Merchant credit card advances are relatively new to the financial services scene. Judging by growth in the industry; it looks like a market that is here to stay.

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