As a small business owner, finding the right financing solution to meet your needs can be a challenge. With so many options available, it can be difficult to determine which one is best for you. One financing solution that has gained popularity in recent years is the merchant cash advance (MCA). In this blog post, we’ll explore what an MCA is, how it works, and the pros and cons of this financing option.

What is a Merchant Cash Advance?

A merchant cash advance is a form of short-term financing that provides small businesses with an advance on their future sales. The advance is typically provided in the form of a lump sum, which the business can use for any purpose it deems necessary. In return for the advance, the lender takes a percentage of the business’s future receivables until the advance is repaid.

How Does a Merchant Cash Advance Work?

The process of obtaining an MCA is relatively simple. First, a small business owner applies for an advance with a lender which takes about 4-5 minutes to complete. The lender then assesses the business’s last 3 months of bank statements along with the application to determine if the business is eligible for an advance. If the business is approved, the lender provides a lump sum of cash in exchange for a percentage of the business’s future sales.

The repayment of the advance is automatically deducted from the business’s bank account via ACH, which means that the business does not have to worry about making regular payments.

Pros of a Merchant Cash Advance

Like any financing solution, a merchant cash advance has its pros and cons. Here are some of the key benefits and drawbacks to consider:


  • Quick and easy to obtain: An MCA can be obtained relatively quickly, which makes it an ideal solution for businesses that need financing quickly.
  • No collateral required: Unlike a traditional loan, an MCA does not require collateral, which makes it an attractive option for small businesses that may not have assets to use as collateral
  • Flexible use: The funds from an MCA can be used for any purpose, which gives the business owner flexibility in how they use the funds.


A merchant cash advance can be a valuable financing solution for small businesses that need funding quickly and do not have assets to use as collateral. However, it’s important to weigh the pros and cons carefully before making a decision. If you’re considering an MCA, be sure to do your research and work with a reputable lender to ensure that you get the best possible deal. Thor Capital Group is a direct funder that offers uncommonly flexible options for working capital to small and mid-sized businesses in need of financing to improve or grow their well-earned place on the street. We place a high value on mutual trust and transparency while providing businesses with simple, quick, and customized financial solutions while leveraging state-of-the-art technology platforms.