The licensed funding specialists at Synergy Merchants have discussed numerous options with their clients concerning…
2008 Merchant Cash Advance Industry Predictions
As requested, I am sharing my 2008 predictions for the merchant cash advance industry.
In 2007, many merchant cash advance companies saw their fair share of bad debt. No matter how many merchants are advanced or how much money is funded each quarter, the bottom line is to expect losses to eat into industry profits.
In 2007, many companies attempted to capture market share and attract new agents and ISO's by funding deals which, in most circumstances, may not have been approved.
In 2008, you can expect to see more and more merchants that no merchant advance company will touch. Possibly even an industry black list.
In 2007, a bidding war between merchant cash advance companies empowered agents and ISO's to attain some of the highest commissions ever recorded in the cash advance industry. The simple fact that there is a new industry in Canada has fostered much competition to find the right agents. Agents and ISO commissions will balance or reduce in 2008.
This market is huge. Its growing at an exceptional pace which builds on the importance of having a standards act in place. I feel confident that in 2008 you will see the key players in the merchant cash advance industry come together to announce a set of “best practices” for not only the merchants, but also to protect the merchant cash advance providers.
The level of fraud committed against merchant cash advance providers in 2007 has brought forward the importance of building such an act.
Demand for merchant cash advances is growing in a very aggressive manner. It is no longer a question of whether or not this is a booming industry. It is a matter of educating business owners about who, what, when, where and why!
In any case, I anticipate 2008 to be a very positive year for the merchant cash advance industry. I wish everyone all the best in 2008.