The MCA financing model is appealing to new businesses because of its versatility and the manner in which resources are distributed, as well as the speed with which small businesses can obtain them. As a result, it is critical to understand him thoroughly in order to determine which businesses are a good fit for him.

The MCA market was valued at more than 620 million dollars in 2021, and it is expected to grow to more than 1,790 million dollars by 2027, including, of course, Merchant Cash Advance Mexico.

This type of financing has a lot of potential and can be a great help to a lot of businesses. The following are some of its most important features:


MCA financing sources: characteristics

This model is an alternative method of financing SMBs to the traditional methods that exist.

Online MCA financing can be defined as a cash advance given by a creditor to a business or a merchant, the payment of which is contingent on sales made through a Point of Sale (TPV) terminal using credit or debit cards.

One way to look at this system is to imagine that a financial institution buys a percentage of a company’s future sales at a fixed rate, resulting in a lump sum of money (financiamiento) that is distributed almost immediately. Because it is one of the fastest financing sources available, it is an excellent solution for businesses, particularly small and new businesses that require resources as soon as possible.


Types of MCA financing

There are two main ways for this type of financing to work in a business:


  • Percentage of sales: this is the most common mode of this financial product, which, as previously stated, is paid as sales occur, implying that the debt is liquidated in a variable time, i.e., the higher the sales, the faster the payment is completed.


  • Fixed withdrawals: this type of MCA is not paid based on sales, but rather on a set amount and time frame, and the financial institution withdraws the agreed-upon funds directly from the bank account, regardless of the quantities that can be sold.


Who is eligible to receive this funding?

Once the method for funding SMBs has been established, it is time to reveal who is eligible to obtain it.Companies interested in this financial product can contact Pymes Capital, a company specializing in business and SMB financing in Mexico.

Within the requirements, it is requested that the applicant’s business have SAT credentials (RFC and CIEC), a POS provider, and a minimum of 6 months of operation and sales of $25,000 (minimum), with payments made by credit or debit card.

Any business that meets these requirements can submit a request for MCA financing and receive a response in a matter of hours.

As you already know, if you have a pyme or a small business that you want to grow in an organized, easy, and quick manner, Pymes the best option for seeking online financing in Mexico.