The US Merchant Cash Advance (MCA) and Debt Settlement Market was valued at USD 24.58 Billion in 2024. The Merchant Cash Advance (MCA) and Debt Settlement Market industry is projected to grow from USD 26.59 Billion in 2025 to USD 54.67 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.5% during the forecast period (2025-2035)
The growing need for alternative business financing, increased awareness of debt settlement services and lack of access to traditional financing are driving the growth of the Merchant Cash Advance (MCA) and Debt Settlement Market.
As per the Analyst at MRFR, The Merchant Cash Advance (MCA) and Debt Settlement (MCA) debt settlement market is expanding with the growing need for alternative business financing, increased Awareness of Debt Settlement Services and Lack of Access to Traditional Financing. However, Factors like the high cost of borrowing and the potential for daily repayment obligations and Lack of Regulation are limiting market expansion. Along with this, some market forces like Rising Demand for Debt Restructuring Solutions and Integration of Technology and AI in Debt Settlement are creating trends for the market.
FIGURE 1: US MERCHANT CASH ADVANCE (MCA) AND DEBT SETTLEMENT MARKET VALUE (2019-2035) USD BILLION
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
US Merchant Cash Advance (MCA) and Debt Settlement Market Drivers
THE GROWING NEED FOR ALTERNATIVE BUSINESS FINANCING
The increasing demand for alternative business funding is a key driver and opportunity for the US Merchant Cash Advance (MCA) and Debt Settlement (MCA) debt settlement market. With mainstream banks reducing lending standards, particularly for small businesses, MCAs have emerged as a favoured option for obtaining quick and unsecured capital. Whereas MCAs' high interest rates and daily repayment terms tend to bring about financial pressure, which presents a huge potential for debt settlement companies dealing in negotiating and restructuring MCA debt.Â
The past few years have also seen a tremendous growth in demand for quick and adaptable financing options, especially by small businesses requiring quick access to working capital but failing to qualify for bank loans. MCAs offer a convenient alternative, as they provide quick financing without credit checks or collateral requirements. The repayment model—using a percentage of daily sales corresponds to the cash flow of most businesses, providing an easier access to capital during times of need. For instance, small retail stores or restaurants may use an MCA to fund inventory, cover seasonal staff, or close cash flow shortages during slow periods.Â
These companies have discovered that although the MCA brought rapid access to capital, the high interest rates and fixed repayment terms render it unsustainable long-term. When the COVID-19 pandemic arrived, numerous small retail stores and restaurants were particularly hard hit by losses in revenues. To help sustain their operations, many looked to MCAs as a means of getting instant injections of cash. But as their sales were unable to pick up, the daily repayments became a heavy burden.
Merchant Cash Advance (MCA) and Debt Settlement by Industry Vertical Insights
Based on Industry Vertical, the US Merchant Cash Advance (MCA) and Debt Settlement market has been divided into Retail and E-Commerce, Restaurants and Hospitality, Transportation and Logistics, Healthcare, Construction and Contracting, Manufacturing, Personal Services (Salons, Gyms, Auto Repair), Others. The Retail and E-Commerce segment dominated the US market in 2024, while the Personal Services (Salons, Gyms, Auto Repair) segment is projected to be the fastest–growing segment during the forecast period.Â
Importance: Retailers frequently experience seasonal variations, necessitating instant access to working capital in off-seasons. MCAs assist in buying bulk inventory at discounted prices or financing ad campaigns to maximize sales in peak season. E-commerce players utilize MCAs to increase scale, invest in website development, or initiate digital advertising campaigns. Trends: The growth of e-commerce has resulted in higher use of MCAs among e-commerce operators. They are using MCAs to compete with chains by enhancing customer experience and offering more products.
US Merchant Cash Advance (MCA) and Debt Settlement Key Market Players & Competitive Insights
Many global, regional, and local vendors characterize the Merchant Cash Advance (MCA) and Debt Settlement Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
The major competitors in the market are Rapid Finance, Fora Financial, Credibly, National Funding, CAN Capital, Kalamata Capital Group, Libertas Funding, Square Capital, PayPal Working Capital, OnDeck Capital are among others. The US Merchant Cash Advance (MCA) and Debt Settlement Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.
Key Companies in the US Merchant Cash Advance (MCA) and Debt Settlement Market include
US Merchant Cash Advance (MCA) and Debt Settlement Market Industry Developments
June 2024: Rapid Finance has enhanced its fraud detection platform, Lynx, with a cloud-based rules engine, allowing SMB lenders to create customized risk management rules. This update aims to improve lending decisions by tailoring criteria to specific business needs. The company also expanded its services with the Rapid Access Mastercard program, offering instant access to funds for qualifying SMB customers.
October 2024: National Funding, alongside its holding company FairSquare, secured an $83.25 million warehouse funding facility from Forbright Bank, with potential for up to $150 million in expansion. This credit facility includes mezzanine capital from Hudson Cove Capital Management, enabling National Funding to enhance liquidity, origination capacity, and support SMB growth.
May 2024: Square has introduced Square Kiosk, a fully integrated self-serve ordering solution for quick-service restaurants. This system allows diners to easily customize and place orders, bypassing lines and improving order efficiency. It integrates with Square for Restaurants, providing real-time sales data and seamless payments through Square Checking for quick cash flow access.
February 2023: CAN Capital has completed a two-year technological transformation, modernizing its loan origination and servicing platform and migrating to the cloud.
US Merchant Cash Advance (MCA) and Debt Settlement Market Segmentation
Merchant Cash Advance (MCA) and Debt Settlement by Industry Vertical Outlook
| Report Attribute/Metric | Details |
| Market Size 2024 | USD 24.58 Billion |
| Market Size 2025 | USD 26.59 Billion |
| Market Size 2035 | USD 54.67 Billion |
| Compound Annual Growth Rate (CAGR) | 7.5% (2025-2035) |
| Base Year | 2024 |
| Forecast Period | 2025-2035 |
| Historical Data | 2019-2023 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | By Industry Vertical |
| Geographies Covered | US |
| Countries Covered | US |
| Key Companies Profiled | Rapid Finance, Fora Financial, Credibly, National Funding, CAN Capital, Kalamata Capital Group, Libertas Funding, Square Capital, PayPal Working Capital, OnDeck Capital |
| Key Market Dynamics | ·        The growing need for alternative business financing ·        Increased awareness of debt settlement services |
Frequently Asked Questions (FAQ):
The US Merchant Cash Advance (MCA) and Debt Settlement Market was valued at USD 24.58 Billion in 2024.
The Retail and E-Commerce segment by Industry Vertical holds the largest market share and grows at a CAGR of 7.6% during the forecast period.
Rapid Finance, Fora Financial, Credibly, National Funding, CAN Capital, Kalamata Capital Group, Libertas Funding, Square Capital, PayPal Working Capital, and OnDeck Capital are prominent players in the US Merchant Cash Advance (MCA) and Debt Settlement Market.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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