Merchant Cash Advance

A merchant cash advance is a genuinely strong fit for specific situations, and a poor fit for others. Understanding which is which, before you apply, not after, is the difference between using this kind of funding as intended and ending up in a situation that’s harder to manage than the one you started with. Here […]

A merchant cash advance can close a genuine cash flow gap quickly, but the speed that makes it useful is also exactly why it’s easy to sign something without fully understanding it. The questions below aren’t about whether MCA financing is right for your business in general, that depends on your specific situation, which our

A confession of judgment, often abbreviated COJ, is a clause that some commercial financing agreements have historically included, under which a business owner agrees in advance to waive their right to defend themselves in court if the provider claims a default has occurred. In practice, this has allowed some funders to obtain a court judgment,

A question that comes up constantly, “is a merchant cash advance even legal?”, has a straightforward answer: yes, MCAs are a legal, widely used form of business financing, structured as a purchase of future receivables rather than a loan. What’s changed rapidly over the past several years isn’t the legality of the product itself, but

The merchant cash advance market has passed $20 billion in annual U.S. volume in 2026, with most industry forecasts projecting continued growth toward the high-$20-billions or beyond by the early 2030s. That growth isn’t happening in a vacuum, it reflects a handful of specific, structural shifts in how small businesses access capital, and understanding those

Merchant cash advance defaults surged 59% to $2.22 billion in 2024, and businesses juggling multiple simultaneous advances default at three to five times the rate of businesses carrying just one. Attorneys who handle small business bankruptcies increasingly describe MCA funders as recurring creditors in these cases, and rarely just one. The pattern behind almost all

An MCA makes sense when speed matters, when your credit doesn’t meet bank standards, when you lack collateral, or when you need capital in 24–48 hours rather than waiting weeks for approval. A bank loan will almost always win on pure cost — lower rates, longer terms, less total dollars paid over the life of

A term loan is repaid in fixed monthly installments at a set interest rate over a defined period, typically requiring stronger credit and more documentation. MCA repayment structures vary by provider. Smart Business Funding’s merchant cash advance, the Direct Fund Program, uses a fixed daily or weekly payment stated in the written agreement and is

By Anthony Collin, CEO, Smart Business Funding. $500M+ funded since 2014. Updated October 2026. The landlord’s call came on a Tuesday. The unit next to Dana’s auto repair shop was opening up, and she could have it, but only if she signed within three weeks. Two more bays would nearly double her capacity. She had

No. Smart Business Funding uses soft credit pulls only during the qualification process, which do not affect your credit score. This is one of the most common hesitations business owners have before applying for funding — and a reasonable one, since a hard credit inquiry can knock a few points off your score. The good