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By now, everyone  knows the storyline. In 2008, the subprime mortgage crisis triggered a financial collapse in the United States and around the world. We also understand that the United States government bailed out the majority of the major domestic banks.
  What's proven to some, and surely don't assume all, is always that since that time financial institutions have done very little lending to small business America. In other words, after "the people" bailed out banks on Wall Street, these banks reciprocated by bailing on Main Street.
There a wide range of theories as to why. Here's a glance at the normally given explanations:

Commercial lending has stopped being profitable as a result of excessive customer defaults.
Banks are having a tougher time meeting new capital requirements.
Underwriting standards have improved significantly.
Uncertainty over government regulations and standards.
Whether it's first of such reasons or every one of them, in the end, is not really important. The reality is banks aren't lending. The situation becomes more severe if you think about the four largest banks, Bank of America / J.P. Morgan Chase / Citigroup / Wells Fargo, are the cause of approximately two-thirds of all commercial lending. If commercial lending isn't profitable for the kids, it's unlikely to be so for smaller banks.
So, who's likely to get the slack? Who's going to accept both the risks and rewards of economic lending at this time? Who's planning to bet on business America? It's the merchant money advance industry.
A merchant cash loan includes a lender purchasing future plastic card sales from merchants at a discount. It isn't financing plus it isn't cheap. But it is a method for businesses to acquire needed capital. If anyone finds that is a offensive or predatory somehow, they should direct their contempt towards banks who aren't lending.
Merchant cash advance providers accept huge risk. If a merchant fades of business, the lending company doesn't have any collateral to fall back on. It's an insecure form of lending.
The forecast for an additional 5-7 years doesn't incorporate a come back to lending for commercial banks. Their assets have depreciated dramatically and therefore are not gonna recover in the near future. Their capital requirements and underwriting standards are more rigorous.
In their stead, merchant money advance, a form of "shadow lending", is going to get with us for many years. Therefore, it's vital for your business proprietor in need of assistance to obtain the best merchant money advance deal that they are able to. With so many lenders in the unregulated environment, you'll find dramatically varying rates and expected timeframes for payback. One must be very careful and choose the right people to assist.
Merchant money advance is a lot from perfect, however for many companies on Main Street, it's their only option. It is how it is. Once a merchant represents a merchant cash loan, anticipation is the business can prosper and manage cash flow before the time when banks might offer more credit again?