Merchant cash advance software offers a way to automate the process of getting a loan against future credit card receipts. That is what a merchant cash advance (MCA) is. The software helps vendors streamline lending and customer relationship management. Software that supports merchant cash advances against credit card receipts exists in many forms.

Merchant Cash Advance Software:

Any financial services provider that provides merchant cash advances, or partners with those companies or wants to expand into that space needs to have access to specialized software. Several companies offer software that streamlines the process of doing a cash advance from prospecting to tracking repayment.

Feature sets vary, of course, but most all merchant cash advance software performs these functions:

  • Managing fee and commission payments to partners and brokers
  • Receiving and processing applications
  • Disbursing funds
  • Tracking payments
  • Tracking the underwriting process
  • Managing potential deals from prospecting to offer acceptance
  • Reporting on portfolio performance
  • Integration with payment processing

Lenders who have partners or franchisees, or who work with loan brokers will definitely want software designed to securely handle interactions with franchises or business owners.

Shopping for Software:

Features vary somewhat from one software platform to another, but that is not the only consideration in selecting software. Software providers offer service in different ways. Fees, customer support, and speed of processing may vary. Some merchant cash advance software that runs on the buyer’s computers, but this is not the norm.

Using software that runs on the vendor’s computers can be good or bad. This is a definite cost advantage for the lender and more convenient. Not only is the software accessible anywhere, there are no security issues raised by giving numerous customers, vendors, and partners access to part of the lender’s computer network.

Different lenders will have different support needs. Some lenders will want direct support from the vendor’s customer service department. Some lenders may be able and willing to pay for an extra level of technical support.

The included functions will vary somewhat between vendors. A basic fee may not cover all of a lender’s desired functionality, or the vendor might not even offer one or two important functions. A vendor might charge less for basic services, but more for premium features that some lenders need.

Brokers can use the forms processing and record-keeping functions to put together lenders and borrowers and track the progress of any deals done and advances delivered. This work can be time-consuming, and expensive, if handled with a standard CRM tool or, even worse, with email and an Excel file.

Lending institutions in the merchant cash advance field now will see the advantage of using customized software. Businesses looking at moving into the merchant cash advance industry will need the specialized software.

Selecting the Best Software:

A business owner shopping for MCA software needs to consider the features of each, the costs, and the nature of customer support that each vendor offers. This merchant cash advance software is a business tool that takes some time and money to select and use effectively.

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