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How Merchant Cash Advances Can Boost Retention and Profits for FIs

Financial institutions face the possibility of losing business whenever they turn down their merchant customers for loans. What is to stop a declined merchant from taking its entire banking relationship elsewhere? One way to prevent this type of customer attrition is to offer merchant cash advances as a funding alternative for clients that fail to meet lending requirements—helping preserve the banking relationship while also providing incremental revenue in the process.

This white paper explains merchant cash advances, how they function, and why they are not subject to the same regulatory oversight as loans. It also offers eight considerations for choosing a provider, and highlights the differences between loans and cash advances.