The Global & U.S. Merchant Cash Advance market was valued at $17.6 Billion in 2020 and is anticipated to grow at a CAGR of 5.03% from 2021 to 2028. Merchant Cash Advance is a small business lending product that incorporates the purchase of a company’s future credit card receivables at a reasonable price. The MCA is essentially intended to be a lump sum payment for a business in exchange for a predetermined proportion of future debit card and credit sales. Cash advances are short-term loans made available by credit card companies, banks, and other financial organizations in the market. Furthermore, some businesses charge greater fees and charge interest on the principle amount.
| Parameters | Indicators |
|---|---|
| Market Size (2028) | $26.3 Billion |
| CAGR (2021 to 2028) | 5.03% |
| Market Classification | Type, Application |
| Key Companies Profiled | Fundbox, Finical Holdings, Square Inc, National Funding, CAN Capital, Credibly, Merchant Source Inc, PayPal Holding (PayPal Working Capital), American Express Merchant Financing, Fora Financial |
| Key Countries/Regions Analyzed | US, Canada, Mexico, UK, Germany, France, Italy, Rest of Europe, China, India, Japan, South Korea, Rest of Asia Pacific, Middle East & Africa, and South America |
| Base Year | 2020 |
| Estimated Year | 2021 |
| Forecast Years | 2021 to 2028 |
Driving Factors
The factors driving the growth of the Global & US Merchant Cash Advance market include Merchant cash advances (MCA) help to raise the seasonal business, retention of full ownership without equity sales, which is expected to boost the growth of the market.
Retention of full ownership without equity sales
Some businesses are more seasonal, only opening their doors during specific seasons such as Christmas, school holidays, summer, or winter. Then there are tiny businesses that enjoy a spike exclusively during a single season, such as holiday cottages, raspberry picking, and snow removal. A merchant cash advance (MCA) can provide quick finance with no collateral and an easy repayment schedule. As a fixed percentage of the holdback rate of an MCA, companies must not concern that they can afford the payments as the debit and credit card sales rise.
Restraining factors
The factors restraining the growth of the Global & US Merchant Cash Advance market include Merchant cash advances (MCA) are not regulated and are more expensive than a traditional loan and MCA limits on business operations.
Key Insight in the report:
Global & US merchant cash advance market report covers Executive Summary, Market Dynamics, Trend Analysis, Market Size and Forecast, Competitive Intelligence, Market Positioning, Product Benchmarking, and Opportunity Analysis.
The report covers extensive competitive intelligence which includes the following data points:
- Business Overview
- Business Model
- Financial Data
- Financial – Existing
- Financial – Funding
- Product Segment Analysis and specification
- Recent Development and Company Strategy Analysis
- SWOT Analysis
Global & US Merchant Cash Advance Market Segmentation The report covers Global & US Merchant Cash Advance market size and forecasting at the country level as well as at the segment level. Global & US Merchant Cash Advance Market analysis across below-mentioned different segments:
By Type
- $ 5,000-250,000
- $ 250,000- 500,000
- >$ 500,000
By Application
- Time in Business <6 Months
- Time in Business 6-12 Months
- Time in Business 12-18 Months
- Time in Business >18 Months
Regional analysis
North America accounted for the largest share of revenue in merchant cash advance market and is expected to maintain its dominance from 2020 to 2027. Due to growth has been the increasing number of retailers seeking out short term credit facilities to help cover short term cash flow difficulties. The cash advance industry has also benefited from lenders looking for new sources of revenue. As the capital markets have tightened, banks have become increasingly interested in alternative sources of income.
The Global & US Merchant Cash Advance Market is analyzed across the below-mentioned region.
- North America
- US
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Rest of Asia Pacific
- Rest of the World
Global & US Merchant Cash Advance Market Key Players:
Some of the key players in the Global & US Merchant Cash Advance Market include:
- Fundbox
- Finical Holdings
- Square Inc
- National Funding
- CAN Capital
- Credibly
- Merchant Source Inc
- PayPal Holding (PayPal Working Capital)
- American Express Merchant Financing
- Fora Financial
REPORT CONTENT BRIEF:
- High-level analysis of the current and future Global & US Merchant Cash market trends and opportunities
- Detailed analysis on current market drivers, restraining factors, and opportunities in the future
- Global & US Merchant Cash market historical market size for the year 2020, and forecast from 2021 to 2028
- Global & US Merchant Cash Advance market share analysis at each product level
- Competitor analysis with a detailed insight into its product segment, financial strength, and strategies adopted.
- Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
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