Merchant cash advances (MCAs) are a relatively new form of funding that emerged after the 2008 recession in response to a greater need for accessible small business funding. With less restrictive approval requirements, merchant cash advances have made more working capital available to more businesses, including underserved communities like wowen-owned and minority-owned businesses.

However, because of their youth, many myths and misconceptions about MCAs persist. In reality, merchant cash advances are a very effective source of fast, short-term funding for businesses that may not be approved for a traditional bank or SBA loan.

To help clear up the confusion, we shared our expertise on merchant cash advances with Smarter Loans, an online resource dedicated to helping small businesses make smarter financial decisions.

Read the full article to discover 8 things all small business owners should know about merchant cash advances, including:

• A merchant cash advance is not actually a loan
• MCA applications are much simpler and easier than traditional loans
• Larger funding amounts are available from some lenders
• You can use your funds however you want
• Merchant cash advance qualification requirements are more favorable to more small businesses
• There are no fixed monthly payments
• Merchant cash advances are not always more expensive than traditional loans
• Who should apply for a merchant cash advance?