Online financing in the form of cash advances have become one of the most interesting alternatives for businesses to obtain financing, apart from bank loans.

In Mexico, it is estimated that 25% of SMEs fail due to difficulties in obtaining financing. It is a percentage that causes entrepreneurs to look for other business credit options, different financial products that they can access, so that their liquidity is not affected, the cash flow is positive, there is long-term growth, and stability is achieved. economic of the project, and that it does not have to disappear.


Definition of each type of financing

That is why in this article you will learn about the characteristics of one of the most traditional credits that exist, such as bank financing, against the new MCA proposal, which refers to the advance of future sales.

See below what each of these external financing sources is about:


Bank credit

Bank business credit is a financial product that involves granting a certain amount of money to an organization (in this case to an SME), which must be returned within a certain period of time, with added interest.

It is provided in a single presentation and can be short-term (for example a few months to a year) or long-term (several years).

If it is a short-term loan, it is used to cover immediate expenses and lack of liquidity, while if it is long-term, it is normally for large projects, such as expansions or major equipment purchases.



The Merchant Cash Advance online loan is a financing alternative in which a company is given an amount of money in advance, which is returned with a percentage of the sales it achieves in the future (by credit or debit card). .

Instead of interest, a fee is paid in advance on the amount borrowed, and the rest is the return of the capital in periods that adapt flexibly.


MCA vs. traditional bank credit

Now look at the particular characteristics that differentiate them, and see which is the best option available to you to strengthen your company and avoid financial stress.


Aspects of banking business credit

Although you can choose between short or long term, they are not as flexible in their terms. Typically, they ask for requirements that young SMEs cannot easily meet, such as having a good credit history, having available assets and demonstrating business performance.

Resolution times are slow, almost a month, and interest rates can be higher than 25%, which makes it difficult for many businesses to opt for this option.


Aspects of the MCA

It is one of the most versatile external financing sources there is, as it adapts from the beginning to what a company can handle in its income.

The requirements have to do with the performance of the business only, and imply a period of operations that does not even need to be one year, income that is not necessarily high, and having a point of sale (POS) terminal provider.

Resolution takes approximately 1 day (it can even be hours), and the upfront fee may be less than 20% of the total financed.

This makes the MCA a very friendly and affordable alternative for businesses, so that they can maintain their operations in case of any difficulty and have an opportunity for growth in the future.


Your option is in Pymes Capital

If you want to try the versatility, immediacy and advantages of online financing, you can do it right now together with Pymes Capital.

You only need to enter the website, fill out an online form, and in a short time you will have a personalized financing proposal fully suited to your project, needs and possibilities. Give your company the boost it needs, with .