商家现金预付款evolve to Online Lending Platforms – Part I

We are seeing financial innovations over the last few years that we have not seen ever. Period. Small business lending has seen the brunt of these changes, and these innovation can be directly attributed to data, analytical models, and improving credit scoring models. Before the financial recession of 2008, banks made small business loans based on various automated technologies. But since that time, they have backed off and the void has been filled by Peer to Peer or Marketplace lenders, and商家现金推进(MCA) products that have evolved beyond financing a company’s credit card receivables.

Just what are MCAs? There are two types of MCA products:

• Traditional Merchant Cash Advance product based on Credit Card Receivables- This is the historical product, where a funder underwrites future credit card receivables based on historical receivables and the funder is paid back from a percentage of days sales direct from the credit card processor. For example, a funder may lend $100K for the right to get $120K over the next 12 months by taking a small % of each days credit sales. This is very popular with restaurants, small retailers, and others that rely on credit card sales. It acts like a daily amortized term loan which is an unsecured, but it is not a loan, but a purchase or advance on assets without a required amortization schedule and fixed maturity. The product is very popular.
• 银行只有ACH产品，资助所有收入，而不仅仅是信用卡应收账款- 这里，资助者不看信用卡现金流，但整体收入。如果企业在现金销售中拥有1.2米，则资助者将达到一定百分点的借记。这款产品过去四年变得更加流行。

Merchant cash advance financing requires no third party interaction with the borrower’s customers. With the MCA, you send your historical credit card or ledger sales data and you can have an advance later today –ondeck.,Kabagebl.和Lending Club和others are raising the stakes here and raising gobs of money to do so.

From a small business perspective, these products can be attractive. Many small businesses do not have great financing options, and if they do have a customer that offers them dynamic discounting, it only impacts a percentage of their sales. What online lenders did was create a way to move beyond credit card receivables – this opened up many new business opportunities.

明天我们将探讨MCA如何与分解，以及为什么它构成威胁，以及为什么MCA销售模式可能导致高风险贷款。

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