How Do Merchant Cash Advances Work?

Merchant cash advances are a popular funding option for business owners who need funding. 

With the birth of merchant cash advances, alternative lending became a game-changer. These non-bank funding option revolutionized the lending space. Alternative lenders, such as those we partner with at Silver Rock Funding, provide funding solutions for entrepreneurs. Merchant cash advances were birthed out of the needs of business owners who accepted credit cards and could prove income, but were denied by banks.

merchant cash advances
With the birth of merchant cash advances, alternative lending became a game-changer. Photo Credit: Visa

What are Merchant Cash Advances?

Merchant cash advances are funding solutions that credit your business bank account a pre-determined amount of money. When it is time to return the money, there will be no headache. Funding is returned as a small percentage of daily credit card receipts. So, when it is time to pay off your loan, merchant cash advances make things simple. No need to remember due dates or struggle for cash to make payments. Silver Rock Funding can connect business owners in 99% of industries with funding.

The Evolution of Lending

The funding industry has changed drastically in recent years. Many experts in the financial industry connect the so-called changes to the financial crisis of 2008. As a result of the economic collapse, many businesses were ostracized by financial institutions.  Tighter regulations crippled many business owners. Banks became less likely to lend to smaller businesses, given preference to the more secure big businesses. Merchant cash advances allowed these denied business owners the chance to get funding using their daily credit card transactions as proof of a solid income source.

The Birth of Alternative Lending

Alternative lenders do things a little bit differently than your average bank or other funding sources. Most notably, Silver Rock Funding (and other alternative lenders) offer fast approvals. Typically, approvals happen within 24 hours. In addition, the approved funding is deposited with 72 hours. This happens after you have accepted the funding terms.  Also, our alternative lenders do not deny funding to business owners based on credit history. Yes, to be clear, you will not be denied due to poor credit.


If you would like more information on funding solutions, such as merchant cash advances, we are here to help. You can get started on your road to funding. Our application is completely free. Let us help you. 

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