As small business owners scramble to secure the working capital they need to maintain smooth business operations and banks continue to reject more lending applications than ever, business owners are choosing new alternative financing options. Among the most popular of these options are merchant cash advances, also known as MCAs.

A simple concept, merchant cash advances are cash advances based on a percentage of future credit card receivables which provide immediate working cash for businesses. Upon approval, the merchant cash advance is electronically wired to the recipient's bank account. Repayment terms vary, but are usually more flexible than small business loans with payments debited directly from sales received through credit card processing.

Levi Rosenblum, co-founder of 1st Merchant Funding, said he's seen a dramatic increase in the number of business owners seeking merchant cash advances and restaurant cash advances through the company's website. "It is extraordinarily difficult for many small business owners to get traditional loans right now. Even thriving businesses need occasional access to additional working capital," said Rosenblum.

A merchant cash advance is not a business loan, but is considered a business-to-business cash advance. As a result, merchant cash advances do not require the personal guarantee which is often a condition of small business loans and do not affect credit reporting. With an approval rate of 90 percent, merchant cash advances are much easier to obtain than small business loans. "We can advance qualified applicants up to two times their monthly credit card processing amounts," said Rosenblum.

Sean Oppen, co-founder of 1st Merchant Funding said business owners are typically relieved when they see how quickly and easily they can get the cash they need with MCAs. "Merchant cash advances are a hassle-free way of obtaining additional funds in a cash-strapped economy," he said.