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 are the direct lender. MCS offers same-day approval, funding within three to four 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 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.

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The Good

Merchant Capital Source has found a unique way to help businesses obtain the financing they need to fund various projects or services. Their service has helped a number of businesses reach their goals and objectives. Benefits of their service include:

Working Capital

Advances can be used for inventory, advertising, expansion, remodeling, equipment purchases, emergencies, taxes, and paying back bills.

No Bank Approval Needed

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: six-months minimum history of card acceptance, $4,000 minimum monthly card volume, minimum 6 months in business, no minimum average bank balance, five to 12 month term financing, at least a 500 FICO score, and $5,000 to $300,000 financing available.
  • Small business loan: no minimum history of card acceptance, no minimum monthly card volume, minimum nine months in business, $250 minimum average bank balance, six- to 14-month term financing, 575 or higher FICO score, and $5,000-$500,000 financing available.

Trustpilot has Merchant Capital Source with 9.5 out of 10. There are 78 reviews with most reviews stating they enjoyed working with MCS for their quick and helpful services and process.

The Bad

Despite having the ability to help a number of businesses get the loans they need, there are also some drawbacks associated with the Merchant Capital Source platform. These limitations include the following items:

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

The company does not have a prepayment penalty. However when speaking to a representative, one can learn that MCS offers an early payoff discount. This information is not found on the website. Being positive information, it should be posted on their website. 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 mark up and it will vary depending on the time frame of the loan and which loan you choose.


Not everyone will be approved for a loan. Most complaints found are from customers that have taken the time to fill out an application, send in documents, and are declined as an outcome.

The Bottom Line

Banks not fully serving small to mid-sized businesses with the capital needed, MCS has stepped in with solutions. 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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