A 10 year timeline of fast business funding..

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Here’s a quick timeline from the last 10 years in business funding. Changes in the funding providers, funding distributors and the merchants. 

Back then, all you needed was UCC’s to make money. The industry grew like wild fire saturating the marketplace with brokers, making the “UCC” a less performing lead source, due to competitor call volume. The best deals are still on UCC’s, but the saturation makes it impossible to make a living off of them now. Marketing for MCA’s evolved heavily from then to now, with several other ways to retrieve data.

By mid- Trump era, the price on goods, services and gas were very low making it easy and affordable to sustain a small business. You would see 3 positions in a merchants account that was only generating $10k/ monthly. That’s long obsolete.

The pandemic came, stopped everything. There were only a select few funders funding, but don’t get it twisted, there were still brokers (including us) that were closing deals, even in the 6-fig range.

By late 2021 lockdowns were ending, funders came back, and we saw things inching back to the norm. Through this there were some supply chain issues, especially with trucks. A lot of defaults occured in trucking, and merchants were unable to conduct business in certain areas.

As of recent, the price of goods & services skyrocketed compared to where it recently was which really changed the brackets for business funding. As well as some significant regulations. Funders acquired larger credit facilities opening the doors to larger companies. Introducing massive MCA (merchant cash advance) funding rounds into the 7-8 figures.

 

Currently in the market

Currently in the market things have changed a bit due to the timeline of things. There’s been a major bracket shift of larger businesses borrowing, and smaller businesses less served. The industry (which was said wouldn’t last in the beginning) adapted well, and has only progressed. Some banks and E-commerce platforms are now also involved in MCA funding. Many had a rude awakening (like Marcus), finding out that these aren’t business loans, and it works differently.

Larger companies that may have never fathomed to take these fast capital programs are now taking advantage of the MCA product. It is tougher to fund these days due to the volatility of the economy, regulations and certain industries. That doesn’t mean there aren’t people making more money then ever, but it isn’t easy like before.

This election will also determine, in large, the climate of the next 5 years in the game. Either way, the industry has proven it can adapt, and always make it work.

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