Global Merchant Cash Advance Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Merchant Cash Advance Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Merchant Cash Advance is a form of business financing that differs from traditional bank loans. Merchant Cash Advance offers businesses an alternative to other financing methods. The business receives a one-time payment from the merchant cash advance provider and repays the advance as a percentage of the business's sales. Merchant Cash Advance is an option for businesses that have high credit card sales, need quick financing, or may not qualify for traditional loans.

Market Overview:

The latest research study on the global Merchant Cash Advance market finds that the global Merchant Cash Advance market reached a value of USD 2795.65 million in 2022. It’s expected that the market will achieve USD 9092.81 million by 2028, exhibiting a CAGR of 21.72% during the forecast period.

Influence of COVID-19 Outbreak on Merchant Cash Advance Industry Development

More than 6.49 million people have died from Covid-19 globally since the outbreak began, and the death toll continues to rise. At present, the global economy continues to recover, but due to intensified supply chain disruptions and increased global economic uncertainty, the recovery momentum has weakened. This is the worst global recession in decades, despite huge efforts by governments to support financial and monetary policy. But in the longer term, a severe recession caused by the broader environment is expected to lead to a prolonged downturn.

For the merchant cash advance industry, the pandemic has dealt a huge blow to SMEs across the globe. Relevant data surveys show that the income of the vast majority of small and medium-sized enterprises has declined. Revenue declines vary by country, depending on the severity of virus containment measures and their impact on business activity. The worst affected will be the accommodation, food service, arts, entertainment, and leisure industries. In these industries, nearly 40% of SMEs said they may have to suspend projects. The daily operation scale of small and medium-sized enterprises is huge, the demand for financing increases, and the demand for a cash advances from merchants increases.

Drivers

The flexibility of Merchant Cash Advance
Compared to the structure of traditional loans, Merchant Cash Advance offers greater flexibility. Payments to merchant cash advance companies fluctuate directly with merchant sales, giving merchants more flexibility in managing cash flow, especially during low seasons. Merchant Cash Advance is processed faster than typical loans, allowing borrowers to access funds faster. Because Merchant Cash Advance is based on actual sales, merchant cash advance providers generally do not require a credit report or file an inquiry with the credit bureau. Merchant Cash Advance providers often place more emphasis on the underlying performance of the business than the owner's credit score. Overall, Merchant Cash Advance is a flexible loan that enables businesses with volatile demand to take control of their finances and is especially beneficial to businesses in the retail, hospitality, and e-commerce sectors. The flexibility of Merchant Cash Advance is one factor that drives companies in the industry.

Emerging Market Trends

Merchant cash advances raise funds for the enterprise, which can maintain the daily activities and short-term needs of the enterprise, and ensure the stable cash flow and moderate growth of the enterprise. This business model is in demand by the enterprise. The downstream capital needs of the merchant cash advance industry involve businesses from all walks of life. Common businesses include medical and wellness, retail, beauty salons and spas, restaurants, franchising, construction and contractors, automotive, and more.

Region Overview:

In global comparison, a significant portion of the revenue was generated in United States (47.77% in 2021).

Company Overview:

PayPal Working Capital is one of the major players operating in the Merchant Cash Advance market, holding a share of 8.46% in 2022.

PayPal Working Capital

Grant payments will enable charities to receive grants shortly after grantors approve funding. Both funders and charities can access all available funding details, including donor information provided, through the PayPal dashboard. Eligible and participating charities have been vetted against PayPal's stringent compliance standards. PayPal is committed to providing secure, reliable and seamless products and services to improve the efficiency of funders and charities in sending and receiving grant payments digitally.

CAN Capital

In its more than 22 years in business, CAN Capital has leveraged its proprietary data-driven model, team of experts, technology and client-centric delivery to earn its status as the most experienced alternative finance firm serving small businesses.

Segmentation Overview:

By type, $ 0-250,000 segment accounted for the largest share of market in 2021.

Application Overview:

The market's largest segment by application is the segment Time in Business 6 - 12 Months, with a market share of 41.87% in 2021.

Key Companies in the global Merchant Cash Advance market covered in Chapter 3:

Capify
Reliant Funding
Kalamata Capital Group
Libertas Funding
Merchant Money
Fora Financial
Kabbage
PayPal Working Capital
Rapid Finance
CAN Capital
Youlend
Credibly
Liberis
Nucleus Commercial Finance
National Funding

In Chapter 4 and Chapter 14.2, on the basis of types, the Merchant Cash Advance market from 2018 to 2029 is primarily split into:

$ 0-250,000
$ 250,000- 500,000
>$ 500,000

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Merchant Cash Advance market from 2018 to 2029 covers:

Time in Business<6 Months
Time in Business 6-12 Months
Time in Business 12-18 Months
Time in Business >18 Months

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)