The merchant cash advance market has shown significant growth, increasing from $17.22 billion in 2023 to $18.41 billion in 2024, with a compound annual growth rate (CAGR) of 6.9%. This growth is attributed to economic recession recovery, the rise of small and medium enterprises, an increase in credit card transactions, rising e-commerce sales, and high demand for quick funding. The market is expected to continue its strong growth, reaching $24.14 billion by 2028 with a CAGR of 7%. This projected growth is driven by e-commerce expansion, increased internet penetration, consumer spending trends, regulatory developments, and increasing awareness and acceptance. Major trends in the forecast period include the adoption of digital payments, technological innovations, advancements in data analytics, enhanced financial technology, and greater customization and personalization.
Global Merchant Cash Advance Market Key Driver
The rapid growth of small and medium enterprises (SMEs) is expected to drive the merchant cash advance market. SMEs, defined as companies with fewer than 250 employees, are expanding due to advancements in cloud computing, e-commerce, globalization, and enhanced internet accessibility. Merchant cash advances provide small businesses with quick capital for operational needs, including cash flow management and expansion. According to the U.S. Small Business Administration (SBA) in November 2023, small businesses made up 99.9% of all U.S. businesses, totaling 33.3 million as of 2023. Additionally, 1.4 million new establishments were launched from March 2021 to March 2022. This rapid growth in SMEs is driving the merchant cash advance market.
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Global Merchant Cash Advance Market Segments
The merchant cash advance market covered in this report is segmented –
1) By Type: $5,000-250,000, $250,000-500,000, More than $500,000
2) By Repayment Method:MCA Split, Automated Clearing House (ACH), MCA Lockbox
3) By Application: Healthcare, Manufacturing, Retail And E-commerce, Travel And Hospitality, Energy And Utilities, Information Technology (IT) And Telecom, Other Applications
By Geography:The regions covered in the merchant cash advance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the merchant cash advance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
Major Merchant Cash Advance Industry Players
American Express Company, PayPal Holdings Inc., Stripe Capital Inc., Lendio Inc., Kabbage Inc., Square Capital LLC, CAN Capital Inc., OnDeck Capital Inc., National Funding, YouLend, Rapid Finance, Fora Financial LLC, Reliant Funding, Fundbox Inc., Credibly Holdings LLC, National Business Capital & Services, BFS Capital Inc., biz2credit Inc., Par Funding, Libertas Funding LLC, Greenbox Capital LLC, Kalamata Capital Group LLC, Perfect Alliance Capital LLC, Advance America Capital Corp, Swift Capital
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Merchant Cash Advance Market Overview
A merchant cash advance (MCA) refers to a financial product where a lender provides upfront cash to a business in exchange for a percentage of its future credit card sales. It is typically used by businesses needing quick access to capital, with repayment based on a fixed percentage of daily credit card transactions until the advance and fees are paid off.
Merchant Cash Advance Global Market Report 2023 provides data on the global merchant cash advance market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The merchant cash advance market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
