The merchant cash advance global market report 2024 from The Business Research Company provides comprehensive market statistics, including global market size, regional shares, competitor market share, detailed segments, trends, and opportunities. This report offers an in-depth analysis of current and future industry scenarios, delivering a complete perspective for thriving in the industrial automation software market.
Merchant Cash Advance Market, 2024 report by The Business Research Company offers comprehensive insights into the current state of the market and highlights future growth opportunities.
Market Size –
The merchant cash advance market size has grown strongly in recent years. It will grow from $17.22 billion in 2023 to $18.41 billion in 2024 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to economic recession recovery, the rise of small and medium enterprises, an increase in credit card transactions, rising e-commerce sales, and high demand for quick funding.
The merchant cash advance market size is expected to see strong growth in the next few years. It will grow to $24.14 billion in 2028 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to e-commerce expansion, increased internet penetration, consumer spending trends, regulatory developments, and increasing awareness and acceptance. Major trends in the forecast period include digital payment adoption, technological innovations, advancements in data analytics, enhanced financial technology, customization, and personalization.
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Scope Of Merchant Cash Advance Market
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Merchant Cash Advance Market Overview
Market Drivers –
The rapid growth of small and medium enterprises is expected to propel the growth of the merchant cash advance market going forward. Small-size enterprises are companies with fewer than 50 employees, and medium-size enterprises are ones with fewer than 250 employees. The growth of SMEs is due to growth in cloud computing and e-commerce, along with globalization and enhanced internet accessibility, which enable them to operate more efficiently and expand their market reach globally, fostering rapid growth and enhancing competitiveness. Merchant cash advances are used by small businesses to quickly access capital for immediate operational needs, such as managing cash flow, funding expansion, and seizing opportunities. For instance, in November 2023, according to the U.S. Small Business Administration (SBA), a US-based federal agency, small businesses constituted 99.9% of all businesses in the United States, totaling 33.3 million as of 2023. Furthermore, from March 2021 to March 2022, 1.4 million new establishments were launched, resulting in a net increase of 447,519 businesses. Therefore, the rapid growth of small and medium enterprises will drive the growth of the merchant cash advance market.
Market Trends –
Major companies operating in the merchant cash advance market are streamlining the application and approval process with digital platforms, such as automated cash advance products, to reach a wider audience beyond their local markets, supporting national or even international expansion. An automated cash advance product provides instant access to funds based on future credit card sales or business revenue. For instance, in September 2021, iwoca Ltd, a UK-based online credit financing company, launched a new cash advance product through partnerships with Funding Xchange, a UK-based financial service platform, for SME online sellers in the UK. This product, powered by Open Banking, offers flexible loans of £1,000 to £50,000 ($1,083-$54,120) with revenue-based repayments. It’s tailored for businesses on platforms like eBay, allowing them to repay based on their earnings. This innovative approach addresses credit assessment challenges, providing critical finance access to support business recovery and growth post-crisis.
The merchant cash advance market covered in this report is segmented –
1) By Type: $5,000-250,000, $250,000-500,000, More than $500,000
2) By Repayment Method: MCA Split, Automated Clearing House (ACH), MCA Lockbox
3) By Application: Healthcare, Manufacturing, Retail And E-commerce, Travel And Hospitality, Energy And Utilities, Information Technology (IT) And Telecom, Other Applications
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Regional Insights –
North America was the largest region in the merchant cash advance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the merchant cash advance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Key Companies –
Major companies operating in the merchant cash advance market are American Express Company, PayPal Holdings Inc., Stripe Capital Inc., Lendio Inc., Kabbage Inc., Square Capital LLC, CAN Capital Inc., OnDeck Capital Inc., National Funding, YouLend, Rapid Finance, Fora Financial LLC, Reliant Funding, Fundbox Inc., Credibly Holdings LLC, National Business Capital & Services, BFS Capital Inc., biz2credit Inc., Par Funding, Libertas Funding LLC, Greenbox Capital LLC, Kalamata Capital Group LLC, Perfect Alliance Capital LLC, Advance America Capital Corp, Swift Capital
Table of Contents
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List Of Tables:
Table 1: Global Historic Market Growth, 2018-2023, $ Billion
Table 2: Global Forecast Market Growth, 2023-2028F, 2033F, $ Billion
Table 3: Global Merchant Cash Advance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
Table 4: Global Merchant Cash Advance Market, Segmentation By Repayment Method, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
Table 5: Global Merchant Cash Advance Market, Segmentation By Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
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Table 74: American Express Company Financial Performance
Table 75: PayPal Holdings Inc. Financial Performance
Table 76: Stripe Capital Inc. Financial Performance
Table 77: Lendio Inc. Financial Performance
Table 78: Kabbage Inc. Financial Performance
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