MCA Market Size and Market Trends (2024 to 2030)

Jason Hunt
April 30, 2024

Merchant Cash Advance is turning into a major player in the finance industry. The MCA market has experienced an unparalleled growth trajectory, increasing from a meager $8 billion in 2018 to an impressive $101 million in 2023.

With an impressive 84% approval rate for MCA applications compared to traditional loans, the market is outstanding in size and accessibility.

How big is the MCA market, and what trends are contributing to its expansion?

Let’s find out.

The Rise of the MCA Market

graph with money increasing

Merchant cash advances started around the late 1990s, invented by a businesswoman to fund her seasonal business.

MCAs gained steam in the early 2000s as a safe and flexible financing option for small businesses. A failed attempt to patent the MCA by the original company opened the door for more competition and, thus, more popularity.

This, along with stricter bank lending practices after the 2008 recession, is what truly made merchant cash advance a popular financing choice.

The MCA market has grown heavily in the past several years. According to Verified Market Reports, the worldwide MCA market attained USD 101 million in 2023.

It is projected to grow at a 10% annual growth rate from 2024 to hit USD 195 million by 2030.

Many factors contribute to this increase:

  • Faster Funding: MCA’s turnaround time is quicker than that of conventional loans. Sometimes, after applying, companies receive funding in just a couple of days.
  • Simpler Application Process: When compared with traditional loans, MCA typically has fewer documentation requirements and also lower credit score requirements.
  • Catering to Underserved Businesses: MCAs are an excellent option for many small and startup companies with a poor credit history.

Key Trends Shaping the MCA Market

Even though the MCA has numerous benefits, some specific trends also have an impact on MCA’s growth:

Improved Investigation

To ensure transparency and fair landing procedures regulatory bodies keep an eye on the MCA industry. This could end up in stronger regulations affecting the community of MCAs.

Technological Advancements

The MCA industry has been affected by the rise of fintech or financial technology. More websites that offer MCA and simplify the process of applying and getting approved can be expected.

Focus on Transparency

Being upfront about terms and charges will probably be valued by providers as the MCA market gets increasingly competitive. Gaining the trust of potential borrowers will require this.

Expansion of Eligible Industries

MCAs were once popular with businesses in the hospital and retail sectors.

But diversification is growing, with MCAs right now available to a larger variety of sectors, including e-commerce, construction, and healthcare.

This extension of establishing industries increases diversity and expands the market’s accessibility.

Regulatory Scrutiny

MCA offers fast funding of capital. However, questions have been raised concerning their transparency and borrower security measures.

To protect the interests of small businesses and stop financial predatory practices, regulatory organizations are carefully investigating this industry daily.

The value of responsible lending practice and following the laws and regulations is made clear by this greater oversight.


The MCA market is predicted to continue developing and growing in the future. Given the rapid development of technology and customers’ changing demands, future developments in MCA products and services can be expected.

To ensure the industry’s long-term sustainability, stakeholders must prioritize ethical lending practices while maintaining constant surveillance.

By maintaining pace with its size and new trends, your business can prepare its own for success in the constantly changing financial scenario.

So, are you ready to walk through the MCA market’s changing landscape?

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Jason Hunt

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