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What You Should Know About Merchant Cash Advance Companies

December 1, 2015

Merchant Cash Advance

Recently, merchant cash advance (MCA) companies have become even more prevalent, and have been marketing themselves to small business owners. Sometimes, they market themselves as a nontraditional factoring company. But, what exactly are they?

MCA companies provide short-term advances to companies in a wide variety of industries. Typically, there’s little paperwork involved, and within a day or two, an MCA company will deposit a lump sum into your bank account.

Important Considerations

Although it may appear to be a quick way to get cash, you should consider the following:

  • MCA companies charge rates up to 30% or greater, more than quadruple the amount of factoring fees.
  • Daily withdrawals from your bank accounts reduces cash flow.
  • Unlike factoring, most MCA companies will not provide additional capital until previous balances have been paid in full.

About TCI Business Capital

TCI Business Capital is a privately held financial services company founded in 1994. The company has operations in Calgary, with headquarters in Burnsville, Minnesota, USA. TCI Business Capital provides a full range of business financial services including: accounts-receivable management, asset-based lending, collection services, credit analysis, factoring services, risk assessment, treasury and more. The company is proud to be recognized for its reliability, flexibility, responsiveness, innovative products, customer service , and exemplary corporate citizenship. For more information visit TCI on the web at