{"id":905,"date":"2019-05-29T09:37:23","date_gmt":"2019-05-29T09:37:23","guid":{"rendered":"https:\/\/blog.indifi.com\/?p=905"},"modified":"2026-06-08T09:45:25","modified_gmt":"2026-06-08T09:45:25","slug":"merchant-capital-business-require-working-capital","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/merchant-capital-business-require-working-capital\/","title":{"rendered":"Merchant Capital Funding \u2013 A Shot In The Arm To Small Businesses That Require Working Capital"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignleft\"><img loading=\"lazy\" decoding=\"async\" width=\"450\" height=\"300\" src=\"https:\/\/blog.indifi.com\/wp-content\/uploads\/2019\/05\/Merchant-Capital-gives-Small-Businesses-a-Big-Break-2-450x300.jpg\" alt=\"Merchant Capital \u2013 A Shot In The Arm To Small Businesses That Require Working Capital\" class=\"wp-image-921\"\/><figcaption><em>Merchant Capital \u2013 A Shot In The Arm To Small Businesses That Require Working Capital<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">MSMEs \u2013 micro, small, and medium enterprises \u2013 make up the\nbackbone of the Indian economy. Despite the global economy being sluggish over\nthe last few years, the Indian economy has managed to remain afloat and even\nmake progress. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The millions of <a href=\"https:\/\/www.indifi.com\/msme-loans\">MSMEs <\/a>in the country are one of the major drivers of the dynamic and steady growth of our economy. Self-funded proprietary, partnership, private self-help groups, MSMEs in India serve a wide range of sectors including food processing, chemicals, retail, packaging, service industry, infrastructure, manufacturing, and more. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s estimated that there are around 42.5 million MSMEs in India offering employment to nearly 106 million \u2013 equal to nearly 40% of the agricultural sector*. <\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background has-vivid-green-cyan-background-color\" href=\"https:\/\/www.indifi.com\/merchant-advance-capital-against-pos-machine\">Get Merchant Capital Loans<\/a><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/merchant-capital-business-require-working-capital\/#Challenges_And_Problems_With_Traditional_Business_Loans\" >Challenges And Problems With Traditional Business Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/merchant-capital-business-require-working-capital\/#Merchant_Capital_%E2%80%93_The_Saviour_Of_Thousands_Of_Small_Businesses\" >Merchant Capital \u2013 The Saviour Of Thousands Of Small Businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/merchant-capital-business-require-working-capital\/#What_Is_Merchant_Capital_And_How_Does_It_Work\" >What Is Merchant Capital, And How Does It Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/merchant-capital-business-require-working-capital\/#Why_Is_Merchant_Capital_Better_Than_Traditional_Loans\" >Why Is Merchant Capital Better Than Traditional Loans?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/merchant-capital-business-require-working-capital\/#Immediate_availability_of_funds\" >Immediate availability of funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/merchant-capital-business-require-working-capital\/#Simple_processing_and_minimal_documentation_%E2%80%93\" >Simple processing and minimal documentation \u2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/merchant-capital-business-require-working-capital\/#No_need_for_high_credit_scores\" >No need for high credit scores<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/merchant-capital-business-require-working-capital\/#No_need_for_Collateral\" >No need for Collateral<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.indifi.com\/blog\/merchant-capital-business-require-working-capital\/#Flexible_and_Automatic_Repayments\" >Flexible and Automatic Repayments<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.indifi.com\/blog\/merchant-capital-business-require-working-capital\/#How_To_Locate_The_Right_Lenders\" >How To Locate The Right Lenders?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Challenges_And_Problems_With_Traditional_Business_Loans\"><\/span>Challenges And Problems With Traditional Business Loans<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Technically speaking a merchant cash advance is not a regular <a href=\"https:\/\/www.indifi.com\/\">business loan<\/a>. Rather, it\u2019s an advance sum that a lender offers you. When you avail a merchant cash advance, the lender gives you a one-time fixed sum, which you can use for any business needs. The sum you have borrowed is repaid as small daily amounts, deducted from the credit\/debit card transactions carried out in your store. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite these promising stories, MSMEs still struggle to\nsecure short-term and long-term business capital, especially from traditional\nlenders like banks. One of the main reasons for small business failure is lack\nof funding. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bureaucratic red tapes, risk-averse mentality, and strict\neligibility requirements of traditional lenders make it difficult for small and\nupcoming businesses to avail funds from banks. Earlier business owners had no\noption but to lose out on the business opportunity or resort to selling their\npersonal assets to fund business growth. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is where the role of merchant capital offered by\ndigital lenders is highly crucial. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Merchant_Capital_%E2%80%93_The_Saviour_Of_Thousands_Of_Small_Businesses\"><\/span>Merchant Capital \u2013 The Saviour Of Thousands Of Small Businesses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Unlike large corporations, small businesses do not have a steady cash flow or large working capital. The only way they can survive, and progress is by seeking quick cash. Small businesses require quick infusions of cash for several reasons \u2013 stocking inventory, payroll, expansion, fulfilling a major customer order, etc. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Merchant_Capital_And_How_Does_It_Work\"><\/span>What Is Merchant Capital, And How Does It Work? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Also known as merchant capital advance, merchant cash\nadvance, merchant financing, or just merchant capital this is a new form of\nfunding available to small business owners. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike traditional business loans, that require applicants\nto have high credit scores, submit collateral, the eligibility requirements of\nmerchant capital is simple and minimal. This isn\u2019t a loan. Rather, here a\nlender offers you an advance sum that you can use to meet your immediate cash\nrequirements. \n\nYou then repay the lender as daily payments\ndeducted from your credit\/debit card revenues.\n\n\n\n<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/top-5-reasons-why-your-business-benefits-from-a-merchant-cash-advance-ccb730e91991\/\">Top 5 Reasons Why Your Business Benefits From A Merchant Cash Advance<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Is_Merchant_Capital_Better_Than_Traditional_Loans\"><\/span>Why Is Merchant Capital Better Than Traditional Loans?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Immediate_availability_of_funds\"><\/span>Immediate availability of funds  <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike traditional loans that take weeks or even months for processing, merchant capital disburses the required funds within a few working days. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Simple_processing_and_minimal_documentation_%E2%80%93\"><\/span>Simple processing and minimal documentation \u2013 <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If you have gone through the process of applying for a <a href=\"https:\/\/www.indifi.com\/\">business loan<\/a> at a bank, then you probably know that it\u2019s a tedious and time-consuming process. A merchant capital, on the other hand, requires minimal documentation and the entire process can be handled online, with just a few clicks and within a few minutes. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"No_need_for_high_credit_scores\"><\/span><strong>No need for high credit scores <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A traditional business loan requires you to have high credit scores. Your credit doesn\u2019t matter when you apply for merchant capital. All you have to do is show proof of your credit\/debit card sales, and you get qualified. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"No_need_for_Collateral\"><\/span><strong>No need for Collateral<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This is another huge benefit, especially for new business owners. Entrepreneurs and small business owners, especially those who are just getting started, are not likely to have sufficient business collateral. A merchant cash advance lets you borrow without submitting any collateral.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Flexible_and_Automatic_Repayments\"><\/span><strong>Flexible and Automatic Repayments<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You don\u2019t have to remember complex repayment schedules. In a merchant cash advance, the amount you owe is automatically debited from your daily credit\/debit card sales.<\/p>\n\n\n\n<p class=\"has-text-color has-very-dark-gray-color wp-block-paragraph\">Now, that you\u2019re aware of the benefits of <a href=\"https:\/\/www.indifi.com\/merchant-advance-capital-against-pos-machine\">merchant capital<\/a>, here\u2019s how you can find the right lenders to avail merchant capital advances.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/top-7-mistakes-retailers-make-when-choosing-a-pos-and-ways-to-avoid-them-d90ddb8ae713\/\">Top 7 Mistakes Retailers Make When Choosing A Pos (And, Ways To Avoid Them)<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_To_Locate_The_Right_Lenders\"><\/span>How To Locate The Right Lenders?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of approaching conventional lenders like banks and\nother NBFCs, you can choose <a href=\"https:\/\/www.indifi.com\/merchant-advance-capital-against-pos-machine\">digital lending platforms like Indifi<\/a>. Online\nprocessing, quick disbursal of funds, and competitive interest rates make\ndigital lending platforms a great choice for small and medium businesses and\nentrepreneurs. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Don\u2019t let lack of capital hold you back. Instead, make use of innovative loan products like merchant capital and take your business to the next level. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Don\u2019t let lack of capital hold you back. Instead, make use\nof innovative loan products like merchant capital and take your business to the\nnext level. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>MSMEs \u2013 micro, small, and medium enterprises \u2013 make up the backbone of the Indian economy. Despite the global economy being sluggish over the last few years, the Indian economy has managed to remain afloat and even make progress. The millions of MSMEs in the country are one of the major drivers of the dynamic [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":921,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[141],"tags":[32,71,12,151,154,419,420,153,91],"class_list":["post-905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business","tag-business-finance","tag-business-loans","tag-merchant-capital","tag-merchant-capital-cash","tag-merchant-capital-funding","tag-merchant-capital-funding-for-msme","tag-merchant-capital-loan","tag-merchant-cash-advance"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=905"}],"version-history":[{"count":13,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/905\/revisions"}],"predecessor-version":[{"id":3541,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/905\/revisions\/3541"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/921"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}