Merchant Cash & Capital’s Technological Leap

Merchant Cash & Capital (MCC), a merchant cash advance firm that focuses on franchising, has made a huge bet on technology and partnerships to expand a business that has been growing by leaps and bounds since its founding in 2005.

MCC has created the technology to partner with other B2B providers like Quick Books, and to help merchants (franchisees) get financing that much faster. The new effort is what will set them apart from their competition, said Stephen Sheinbaum, the CEO and founder of the company.

MCC’s partnership with these online B2B platforms allows customers of those providers to access capital from MCC through the partner’s website.  For MCC, these are new customers for them they may not have had access to later. For their online referral partners, giving access to financing is a value-add they can offer their online customers.

The new technology is also faster, integrating elaborate scoring engines that MCC has built, Sheinbaum reports. Merchant cash advance companies mostly specialize in loans under $100,000—it is short-term capital with little documentation required. Hence, it is higher risk and has higher interest rates than typical bank funding. What was once approved in two weeks will now take minutes, Sheinbaum says.

He’s also not turning away from his referral partners of old: banks and brokers. Banks don’t want to do a loan for $50,000—it’s too small, he says. “Bank would be better off being a referral partner to us,” he said. “They’d probably make more money.”

And, franchisees can access the MCC site directly themselves. One goal is to work with franchisors to set up programs when equipment, software and other needs are at issue.

Because of the new effort, he expects to grow the MCC business 300 percent over the next 24 months—and they’ve already financed $635 million in financing since opening their doors.


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News, notes and commentary on franchise financing, including SBA lending, both the SBA 7(a) program and the SBA 504 program, franchise finance programs, development incentives, big deals and startup lending.

  Mary Jo Larson is the publisher of Franchise Times Magazine and its sister publication, the Restaurant Finance Monitor. She is a frequent speaker at meetings and conferences, and at the Restaurant Finance & Development Conference. You can find her on Twitter at @mlarson1011.
  Reporter Jonathan Maze covers restaurants and finance for Franchise Times. He also writes for our sister publication, The Restaurant Finance Monitor, and writes a daily blog on the restaurant industry at You can also catch him on Twitter at @jonathanmaze.




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