What Are Merchant Cash Advances?

Picture of Merchant Cash Advance

As a business owner, taking loans is sometimes necessary in order to either start your business or
enter a new project or venture. Merchant cash advance companies (MCA) are a type of financial
service business that provide short-term funding to businesses in exchange for a percentage of
their future credit card sales. MCAs provide alternative financing to a traditional small business

What Are Some Advantages and Disadvantages of MCAs?
Some advantages of MCAs is that not only do they provide quick access to unsecured funds,
requiring no collateral, but they are also easy to get, needing not underwriting or credit check.
However, they can carry extremely high APRs and fees; also, they have no grace period,
meaning that credit card cash advances begin accruing interest on day one.

What Licenses Do I Need to Operate a Merchant Cash Advance Businesses in Florida?
To operate a merchant cash advance business in Florida, you will need to obtain a license from
the Florida Office of Financial Regulation (OFR). The specific type of license required for a
merchant cash advance business is a Sales Finance Company License. This license allows you to
engage in the business of making loans or sales finance agreements for the purpose of financing
the sale of goods or services.

In addition to obtaining a Sales Finance Company License, you will also need to comply with
other regulations such as registering with the National Mortgage Licensing System (NMLS) and
obtaining a surety bond. It is recommended to consult with the OFR for detailed information
about the application process, fees and regulations that apply to your specific business.

EPGD Business Law is located in beautiful Coral Gables. Call us at (786) 837-6787, or contact us through the website to schedule a consultation.

*Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns. Contacting us through our website does not establish an attorney-client relationship.*

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Silvino Diaz

Silvino E. Diaz’s practice ranges from Civil and Commercial Litigation to Entertainment and Intellectual Property Law. Silvino has earned a reputation as one of Puerto Rico’s foremost advocates for independent musicians and artists. As a result of his sustained commitment to creative industries, he was named Professor of Intellectual Property Law at Atlantic University College (Guaynabo, PR) – the Caribbean’s leading digital arts institution – where he spearheaded the “Introduction to IP” course for both the graduate and undergraduate programs, and was appointed by the Office of the President to develop an Intellectual Property graduate curriculum, where he served until moving to Miami in 2017. He is the founder of the service known as Starving Artists, where he offers innovative business and legal counsel for artists and creatives.


*The following comments are not intended to be treated as legal advice. The answer to your question is limited to the basic facts presented. Additional details may heavily alter our assessment and change the answer provided. For a more thorough review of your question please contact our office for a consultation.

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The Entrepreneurs Handbook

This is a quick legal reference guide covering 16 topics that every business owner needs to have to start a business


The Entrepreneur's Handbook

This is a quick legal reference guide covering 16 topics that every business owner needs to have to start a business