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Merchant Capital Source

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LAST UPDATED: September 2nd, 2021

Founded in 2005, Merchant Capital Source began its journey in the funding industry for small to mid-sized businesses. The company provides small business loans or merchant cash advances the capital that businesses need without the obstacles inherent with traditional lending. Merchant Capital Source is a direct lender. MCS offers same-day approval, funding within two days, and minimal paperwork. The company is also a member of the Small Business Finance Association, which is a not-for-profit association that represent organizations in the United States and Canada that are in the business of providing working capital to small and mid-sized businesses. Headquarters are in Huntington Beach, California, and serving businesses nationwide. Consumers that choose Merchant Capital Source should remember that they must have a credit score of 550 or higher.

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The Good

  • Working Capital
  • Options for Low Credit Scores
  • Direct Lender
  • Details of Loans

Working Capital

Advances can be used for inventory, advertising, expansion, remodeling, equipment purchases, emergencies, taxes, and paying back bills. Loans are available up to $500k and funding can be deposited within two days.

Options for Low Credit Scores

A small business loan or merchant cash advance from Merchant Capital Source does not need bank approval. Merchant works with low credit scores, and there's no need to wait for lengthy times for approval and to get the funds you need unlike working with a banking institution.

Direct Lender

Being the direct lender for loans, MCS can offer unequaled rates, speed, and security. Many companies in the finance industry are brokers and your personal information is shared with third-party sources. With MCS your information will stay with them, and in return will not affect your credit score.

Details of Loans

MCS spells out the details of both loan options via their website:

  • Merchant cash advance: $4,000 minimum monthly card volume, minimum six months in business, five to twelve month term financing, and $5,000 to $500,000 financing available.
  • Small business loan: minimum nine months in business, $250 minimum average bank balance, six- to fourteen-month term financing, and $5,000-$500,000 financing available.

The Bad

  • Limited Loan Options
  • Missing Information

Limited Loan Options

Merchant Capital Source offers only two options for businesses. If you are looking for a line of credit or another kind of term loan you will need to look somewhere other than MCS.

Missing Information

Interest rates and fees are not listed as information for either loan. When speaking to an agent it was explained it is based off a markup and it will vary depending on the time frame of the loan and which loan you choose. We would also like to see information regarding funding, credit score requirement, collateral, and availability.


The Bottom Line

Merchant Capital Source has funded thousands of advances since opening their doors. The company offers small business loans and merchant cash advances with a quicker process than banks. Structuring every loan to meet the immediate cash needs of the business, while being mindful of its future cash flow requirements (as far as payments are concerned). The company does have limited loan options, however, so if you are looking for either a line of credit or a term loan, you will have to direct your attention toward another lender.

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Alonzo Wilcher Charlotte, NC

I spoke with a agent on last night regarding a business loan for my trucking company of 7yrs.My company made a little less than 200,000 last year even with covid in full affect,this did not matter,I have a credit score over 150 points hire than Merchants minimum score required,this didn't matter,My company has been in business for almost seven years,this didn't matter .I have a great payment history,this didn't matter. I own my own home and most of my trucks and trailers are paid off.This did not matter to Merchant Capitol. What seemed to only matter to this company was if my company rented a business space or if my company works out of my home.I was told that I could not be considered for a loan because my company operates out of my home.I did not hear this unmentioned fact in there radio advertisement, did you.What bothered me the most about my phone call with a Merchant Capitol representative was that she was working from home.I heard her dog and kids in the back ground. I think lender's like Merchant Capitol are a joke a sad example of a real lender.In closing over 60 percent of companies that can work from home are now working from home.How can a serious, conscientious lender really expect small companies in this day and age to take on that kind of over head. Simply a pathetic company and a outrageous standard that they themselves do not live up too

2 years ago

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Lowell Kelsey Pensacola, FL

This is not a bank it is a high interest advance. I feel deceived by the representative the I spoke with about this company and there policies. All interest is charged in advance and they will give no breaks for early payoff.

5 years ago