When choosing financing, businesses already have a variety of options available to them in addition to traditional credit, one of which is the MCA, or Merchant Cash Advance.

The first thing that needs to be mentioned is that between 2015 and 2021, it is estimated that 43% of businesses will have used financing at least once. In addition to the foregoing, the Encuesta Nacional de Financiamiento de las Empresas (ENAFIN 2021) revealed that businesses have limited access to financing and business credit, primarily due to high interest rates, the numerous requirements requested, and the quantity and difficulty of the process.

This is where the MCA enters, representing a market that is expanding globally due to its convenience and ease. But why is it outperforming conventional bank loans in terms of land sales? One must consider both possibilities to respond to that question.


Traditional credit

It’s one of the financial products that businesses of all sizes and industries typically turn to to obtain financing that helps them survive difficult times, maintain a sufficient cash flow, purchase raw materials and equipment, among other things.

One of their characteristics is that they include an interest charge that must be paid in addition to the amount granted as compensation.

There are both fixed rates and variable rates for these interest rates:


  • Fixed: This type of interest rate keeps a constant percentage from the start of the contract until its conclusion, independent of external economic fluctuations.
  • Variable: This rate is impacted by external economic factors like inflation. As a result, you may occasionally pay a greater interest rate than others.

The duration used to pay off the debt is another factor; the shorter the term, the greater the installments, but the interest may reduce, and vice versa. Said payments are required to be made at predetermined intervals.

Additionally, you must leave some asset as a guarantee and pay administrative commissions for these credits for businesses.


Merchant Cash Advance

The MCA, sometimes known as cash advances, is a type of financing in which businesses are given access to immediate liquidity in exchange for a portion of future sales plus a certain fee.

This sort of financing is not a loan, but a more objective way to look at it is that the financial institution purchases a portion of the sales made by its borrower (paid with cards) and deducts a daily or weekly percentage from those sales until the cash advance is paid back. Just like that.

Payment intervals are therefore flexible. The faster the loan is paid off, the more it is sold.


The businesses in Mexico can choose the Merchant Cash Advance and benefit from its advantages, such as:

  • A quick and simple approval process.
  • Instantaneous capital disposition.
  • Flexible payment terms.
  • There are no interest rates.
  • The granted capital may be used as desired.


How do I choose?

Each of the products caters to different needs, but when it comes to payment methods, cash advances are the best option for very small or newly established businesses that lack the requirements for a traditional prepayment and want to expand without incurring excessive debt.

Visit Pymes Capital, the best choice for Merchant Cash Advance in Mexico, if you’re interested in this kind of financing. Try it out and use this kind of financing to help your business grow.





  1. com/2022/…/presumption-of-the-merchant-cash-advance-market-2022-know-the-estimation-consumption-and-demand
  2. banxico.org.mx/publicaciones-y-prensa/…/%7BD50011D6-98BB-1D8A-85C6-C635535A04DE%7D.pdf
  3. inegi.org.mx/contenidos/…/Enafin2021_Nal.pdf
  4. nerdwallet.com/article/…/merchant-cash-advance