Merchant Cash Advance: Industry Primer and 2008 Outlook

Mercator Advisory Group Research Note

Abstract: The Merchant Cash Advance (MCA) market will likely face increased M&A and start-up activity and formations of new alliances in 2008 as existing players consolidate and speculators who were singed by the subprime mortgage crisis seek new revenue streams. Not only will mortgage brokers be seeking entry to this market, but as their consumer and business lending operations experience a cooling trend, financial institutions will too. In this Research Note, Mercator examines current market forces, processing models, and strategic approaches to this extremely lucrative, yet perennially controversial growth market.