Latest news with #SMBs
Forbes
7 hours ago
- Business
- Forbes
Understanding Merchant Cash Advances: What SMBs Should Know
By Raymond Grand, Founder of JRG Funding, specializing in alternative finance solutions for small and midsized businesses across the U.S. In today's rapidly shifting economic landscape, traditional financing methods don't always meet the needs of small and medium-sized businesses (SMBs). With traditional banks having stricter underwriting requirements and a dwindling appetite for risk, many SMBs struggle to access financing. This pushes some to pursue alternative finance options, such as merchant cash advances. At my company, which specializes in alternative finance options, we're seeing this trend firsthand. Many of the SMB leaders who come to us have already been denied by banks or faced months-long delays. These aren't failing businesses; they're profitable, growing companies that need access to capital. We're also seeing more inquiries for larger deals than ever before, signaling that even some well-established businesses are turning to MCAs as a potential tool. The Rise Of Alternative Finance Global alternative finance volumes, excluding China, grew from $89 billion in 2018 to $113 billion in 2020, according to a report by the Cambridge Centre for Alternative Finance. The Business Research Company projected that this market could exceed $676 billion by 2029. MCAs, in particular, have emerged as a fast-growing segment, and they're expected to grow from $17.9 billion in 2023 to $32.7 billion by 2032, Allied Market Research said. To me, this growth reflects a major shift in how business owners are thinking about capital. How Merchant Cash Advances Work MCAs have evolved into a financing tool used in a broad range of industries—from construction and logistics to healthcare and e-commerce. Rather than issuing a traditional loan, MCA providers purchase a portion of a business's future receivables and deliver a lump sum of working capital up front. Repayments are made through daily or weekly remittances, often automatically deducted as a fixed percentage of daily sales. In my experience, this structure tends to be particularly attractive to businesses with seasonal revenue, fluctuating cash flow or urgent capital needs. Compared to traditional loans, which may take weeks, MCA deals can often be completed within a few hours, as the underwriting is typically based on bank statements and revenue trends. Additionally, for underserved businesses, MCAs may represent one of the few accessible capital options. Businesses with limited credit, recent tax liens or past bankruptcies may still qualify. MCAs can also offer flexibility. Repayment, for example, is structured to scale with business performance, which can be helpful in unpredictable economic conditions. And whether an owner is paying for inventory, payroll, equipment or expansion, MCAs typically come with minimal restrictions, which can give business owners more autonomy over how they deploy capital. Risks Of MCAs: What Business Owners Should Consider While MCAs may be a helpful tool when used strategically, like any financial product, they come with responsibilities and must be approached with caution. First, you should consider whether an MCA is the best fit for your business. It may be a good option if you have strong, consistent cash flow and you're seeking short-term capital for a time-sensitive opportunity—like purchasing discounted inventory, bridging a seasonal dip or launching a new location. However, MCAs aren't ideal for every situation. If your margins are thin, revenue is unpredictable or you're using funds to cover ongoing losses, the daily repayment model can create additional strain. Business owners should treat MCAs as a strategic growth tool—not a bailout—and only proceed if they have a clear plan in mind for a return on the investment. Additionally, consider the risks of this financing option. Some of the most serious are over-extending yourself and stacking, which is when a merchant takes multiple advances from different providers at the same time. It might feel like a short-term solution, but stacking often leads to unsustainable daily payments and severe cash flow issues. We regularly see merchants request more capital than their cash flow can support. It's critical that deals are structured in a way you can actually afford them. If you're considering an MCA, begin by asking the right questions: What is the total payback amount? Is the rate presented as a factor rate or an annual percentage rate(APR)? How will the daily or weekly repayment impact cash flow? Are there prepayment discounts or renewal expectations? You also need to be transparent if you're working with multiple providers. When merchants stack with multiple providers without coordination or transparency, they undermine that structure and put themselves at risk of overleveraging. In my experience, a single, properly underwritten advance is almost always safer and more sustainable than several uncoordinated ones. When looking for a provider, remember that due diligence is essential to ensure you're working with a reputable MCA firm. The provider should walk you through the full cost, structure and expectations. They should also assess your ability to manage the repayment schedule without jeopardizing operations. If a provider is vague, pushy or avoids direct questions, that's a red flag. The Bigger Picture As SMBs wrestle with inflation, labor shortages, supply chain disruptions and changing consumer behavior, they need funders who understand their urgency, believe in their vision and can move at the speed of business. Looking ahead, I believe the alternative finance space is poised for more growth and legitimacy as technology improves underwriting precision and capital sources become more diversified. However, entrepreneurs and business owners exploring alternative finance options like MCAs should educate themselves, ask tough questions and partner with funders who operate transparently. For those who do, the new era of finance isn't just an opportunity—it may be a competitive advantage. The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Globe and Mail
a day ago
- Business
- Globe and Mail
Salesforce vs. HubSpot: Which CRM Stock Is the Smarter Buy Now?
Salesforce, Inc. CRM and HubSpot, Inc. HUBS are two of the most recognized names in customer relationship management (CRM) software. Both are cloud-based platforms that help businesses attract, convert and retain customers. However, they serve different ends of the market. Salesforce is the dominant force among large enterprises, while HubSpot is making strong inroads with small and mid-sized businesses (SMBs). As investors search for sustainable winners in enterprise tech, a deeper look into each company's fundamentals, growth outlook and valuation helps determine which of these CRM stocks offers stronger long-term potential. Salesforce: CRM Giant but Slowing Growth Warrants Caution Salesforce continues to dominate the CRM market, outpacing rivals like Microsoft, Oracle and SAP. Over the years, Salesforce has built a strong and interconnected platform. The acquisition of Informatica, Zoomin and Own Company shows its intent to move beyond its position as a CRM software maker and become a broader enterprise software provider focused on artificial intelligence (AI), data and collaboration. AI is now central to Salesforce's growth plan. Since rolling out Einstein GPT in 2023, the company has embedded generative AI into its platform to help businesses automate processes, improve decisions and offer better customer experiences. As AI adoption rises across industries, Salesforce is well-placed to benefit from the same. Its latest innovation, Agentforce, reflects that momentum. Paired with its Data Cloud, Agentforce has already hit $100 million in annualized revenues just two quarters after launch. More than 4,000 customers are using it for various tasks in sales, service and marketing. Data Cloud is also expanding fast, with annual recurring revenues growing more than 120% year over year. Salesforce's broader strategy of bringing apps, data and AI agents under one umbrella gives it a strong edge. However, Salesforce's biggest challenge right now is slowing sales growth. For years, the company has delivered double-digit revenue increases. However, that pace has now cooled to single digits. In the first quarter of fiscal 2026, revenues rose just 7.7% from a year ago, and non-GAAP earnings per share (EPS) grew by only 5.7%. This slowdown reflects cautious enterprise spending amid economic uncertainty and geopolitical pressures. Analysts anticipate that this trend will persist, with mid-to-high single-digit revenue growth expected for fiscal 2026 and 2027. Non-GAAP EPS is expected to grow at a low double-digit rate for the two fiscals. HubSpot: A Fast-Moving Player in the CRM Market HubSpot has carved out a strong position by focusing on ease of use, affordability and a highly integrated platform tailored for smaller and mid-sized businesses. Its all-in-one offering for marketing, sales, customer service and content management is driving financial performance. In the first quarter of 2025, the company's revenues and non-GAAP EPS increased 15.7% and 5.9%, respectively, on a year-over-year basis. HubSpot is also investing heavily in AI features, workflow automation and advanced reporting to appeal to larger mid-market customers. This strategic positioning gives HubSpot a lot of room to expand, especially as more SMBs digitize their sales and customer operations. Additionally, HubSpot's App Marketplace offers a customer-centric solution by making it simple for companies to find and seamlessly connect and integrate solutions to grow their businesses. As companies prioritize a digital-first approach, it is likely to create more opportunities for developers to build new integrations that support every stage of the customer journey. Analysts' estimates for the top and bottom lines suggest that HubSpot is likely to grow at a faster pace than Salesforce. The Zacks Consensus Estimate suggests mid-teen percentage growth for 2025 and 2026 revenues. Non-GAAP EPS is forecasted to rise in the mid-teen percentage range for 2025 and in the low 20s for 2026. HUBS' Premium Price: Worth Paying for the Growth? On the valuation front, HubSpot trades at 8.75 times forward sales compared to 5.84 times for Salesforce. While HubSpot looks more expensive, its higher growth momentum justifies the premium. Salesforce's lower valuation reflects its risks, including slowing sales growth and macroeconomic headwinds. Conclusion: HUBS Is the Better Pick Right Now Both Salesforce and HubSpot are strong companies with good business models, but they are at different points in their growth paths. Salesforce is more mature and is facing growth challenges, while HubSpot continues to grow at a steady pace. For long-term investors who want consistent performance, HubSpot looks like the smarter investment choice today, even at a higher valuation. Currently, HubSpot sports a Zacks Rank #1 (Strong Buy), making the stock a must-pick compared to Salesforce, which has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce Inc. (CRM): Free Stock Analysis Report HubSpot, Inc. (HUBS): Free Stock Analysis Report
Forbes
5 days ago
- Business
- Forbes
How The Battle For Merchant Acquisition Is Coming To Main Street
Fiona Roach Canning is the co-founder and CEO of Pollinate. Recent years have seen America's banking system waking up to the true value of merchant acquiring. This is a market forecast to hit $41.75 trillion globally by 2026. Despite this, banks have found themselves outflanked and losing market share to fintechs, processors and other nonbank financial institutions. This is especially the case when it comes to providing merchant services to the more than 36 million small and midsized businesses (SMBs) that form the backbone of the U.S. economy. Fintechs and payment processors have made significant inroads with the U.S.'s SMBs, depriving banks not only of merchant services revenue but also of the ability to cross-sell deposit and lending services, which fintechs are increasingly offering themselves. This represents a significant challenge for the banking sector, which is now drawing upon its considerable resources to fight back. In recent years, for example, we have seen Bank of America (registration required) and Wells Fargo recalibrating their approaches to merchant services, with the cessation of joint ventures. Likewise, Huntington Bank has pivoted in its approach, too, and more will likely follow. These moves not only mean greater revenue share for the banks but also more customer primacy, meaning increased deposits and better lending decisions. The U.S.'s corporate banks are recalibrating, but what about Main Street? What about the many small and midsized banks across the U.S., serving local communities and businesses diligently, but which don't necessarily have the scale and budgets necessary to take the fight to the fintechs? Merchant Acquiring Models The examples above highlight a trend among larger, full-service banks toward greater ownership of merchant acquisition and the merchant journey. For Main Street banks, however, buying out merchant acquisition partners isn't always an option. As it stands, most of America's Main Street banks operate a referral model when it comes to merchant services. These banks leverage their customer bases to act as a distribution channel for payment processors in return for revenue share and cross-selling opportunities. In many ways, this model works well. It allows Main Street banks to offer their business customers, mostly drawn from America's 36 million-plus SMBs, integrated payments solutions with the overhead and management of associated costs and risks. It also comes with some downsides, however, and as competition for merchant acquisition grows, these downsides may become ever more obvious. Outsourcing merchant services, even to a valued partner, can lead to a complicated and disjointed customer journey and a loss of emphasis on the vital relationship between SMB and business bank. There is a range of other players competing for merchant services, too, and offering a smoother customer experience. Based on my company's proprietary analysis, Main Street penetration of merchant services among their own business customers is often as low as 3% and attrition as high as 20%. At the other end of the banking market, it's for these reasons that Wall Street is rethinking its approach to merchant acquisition, but what options are available to Main Street? Moore Bang For Your Buck Moore's Law was originally designed to describe the decreasing cost of semiconductors over time. Anybody who works in the tech sector, like I do, can't fail to notice this trend playing out across tech as a whole. In sectors from finance to software development, growing access to sophisticated tech tools is lowering traditional market barriers and allowing smaller and mid-market businesses to compete with their larger counterparts. And this competition will only speed up. The recent launch of Truist Merchant Exchange is an example of this. (Full disclosure: My company has partnered with Truist.) Here we see a bank reclaiming the merchant relationship with a platform that offers SMBs the tools needed to make business easier. Crucially, this platform also gives business customers the kind of experience that, following years of customer experience (CX)-focused fintech growth, they've come to expect. Whichever model banks choose when it comes to merchant acquisition—whether the referral model or a more bank-owned approach—a major stumbling block when facing digital-first fintech-driven merchant services has been CX. The banking industry has long recognized its 'experience gap,' with some estimating that up to 20% of customer attrition can be attributed to poor CX. To paraphrase the great political insight, when it comes to winning back merchant acquisition, 'It's experience, stupid.' Technological solutions, however, especially in merchant services, can help smooth the customer journey, create a more seamless experience and offer more opportunities for banks to own the customer relationship and the selling opportunities that come with it. This isn't just better for the customer but also can have a real impact on the bottom line. My company's own work in this space has seen an improvement in merchant growth of 15% year on year, double-digit upticks in monthly deposit balances and product adoption rates and customer relationships that last on average 10% longer. Thankfully for Main Street, experience-driven platforms are putting great CX within reach and changing the dynamics in the competitive world of merchant acquisition. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Yahoo
6 days ago
- Business
- Yahoo
Receive Raises Seed Round and Launches White-Labeled Titanium Boost Mastercard
NEW YORK, July 17, 2025 /PRNewswire/ -- Receive Raises Seed Round and Partners With Titanium Payments to Launch Titanium Boost Business Mastercard®, Unlocking Real-Time Revenue Access for SMBs. Receive, a fintech startup democratizing financial access for small businesses, has emerged from stealth mode. The announcement coincides with a $4 million seed round led by NGVP, bringing their total funding to $7.1 million. Receive is supported by additional debt financing and is backed by leading investors, including Blank Ventures, Verissimo Ventures, Insight Partners, Corner Ventures, Clocktower Technology Ventures, and others. Receive was founded by fintech executive Ariel Blum, who previously held leadership roles at Melio, Green Dot, and American Express. Blum recognized the limitations of outdated financial systems in serving the needs of growing small and medium-sized businesses (SMBs). Fast-growing businesses were held back by delayed payouts, long settlement windows, high capital costs, and expensive credit that slowed momentum. According to SCORE, a U.S. Small Business Administration partner, 82% of small businesses fail due to cash flow issues. To address this challenge, Blum launched Receive—the first Earned Revenue Access platform—giving SMBs fast, flexible access to revenue they've already earned, without interest, credit checks, or traditional underwriting. By turning pending sales into spending power, Receive helps businesses reinvest sooner, operate more efficiently, and grow without debt. Receive's white-labeled partnership model empowers Independent Sales Organizations (ISOs), payment processors, software providers, and more, to leverage first-party data, unlock a new revenue stream, identify growth opportunities, deepen merchant relationships, and gain a competitive edge. Receive has partnered with Titanium Payments to launch the Titanium Boost Business Mastercard®, bringing Earned Revenue Access to Titanium Payment's network of small businesses. The Titanium Boost Business Mastercard, powered by Receive, converts pending settlements into real-time spending power for Titanium merchants. This reflects Receive's mission to build a smarter, more flexible financial ecosystem that helps SMBs grow on their terms. "From e-commerce to Main Street, cash flow is a universal challenge that limits growth. We recently supported a local mechanic who was struggling to scale because he was waiting on funds to settle before purchasing parts for upcoming jobs," said Blum. "Delays or costly financing can severely disrupt progress. With Titanium Boost, businesses can access revenue on their terms, keeping operations running smoothly." To put control back in the hands of small businesses, Receive launched the SmartPay Calendar—a self-driving repayment tool that turns cash flow from a challenge into a competitive advantage. Merchants choose when to repay Receive, with the option to earn more spending power by paying early. Receive is setting a new standard in financial management to help SMBs grow faster, operate smarter, and stay in control of their cash flow. About Receive Receive is a U.S.-based financial technology company revolutionizing how small and medium-sized businesses manage cash flow. Backed by NextGen Venture Partners and leading investors, its Earned Revenue Access platform provides real-time access to revenue, enabling SMBs to operate with greater agility, flexibility, and financial control. The Titanium Boost Business Mastercard is issued by Patriot Bank, N.A. (Member FDIC), under license from Mastercard International Incorporated, and is accepted anywhere Mastercard is accepted. To learn More: Inquiries: LinkedIn: Contact Mr Jonathan SinyorReceivesupport@ Photo - - View original content to download multimedia: SOURCE Receive Sign in to access your portfolio
Business Insider
6 days ago
- Business
- Business Insider
Receive Raises Seed Round and Launches White-Labeled Titanium Boost Mastercard
Receive Raises Seed Round and Partners With Titanium Payments to Launch Titanium Boost Business Mastercard®, Unlocking Real-Time Revenue Access for SMBs. Receive, a fintech startup democratizing financial access for small businesses, has emerged from stealth mode. The announcement coincides with a $4 million seed round led by NGVP, bringing their total funding to $7.1 million. Receive is supported by additional debt financing and is backed by leading investors, including Blank Ventures, Verissimo Ventures, Insight Partners, Corner Ventures, Clocktower Technology Ventures, and others. Receive was founded by fintech executive Ariel Blum, who previously held leadership roles at Melio, Green Dot, and American Express. Blum recognized the limitations of outdated financial systems in serving the needs of growing small and medium-sized businesses (SMBs). Fast-growing businesses were held back by delayed payouts, long settlement windows, high capital costs, and expensive credit that slowed momentum. According to SCORE, a U.S. Small Business Administration partner, 82% of small businesses fail due to cash flow issues. To address this challenge, Blum launched Receive—the first Earned Revenue Access platform—giving SMBs fast, flexible access to revenue they've already earned, without interest, credit checks, or traditional underwriting. By turning pending sales into spending power, Receive helps businesses reinvest sooner, operate more efficiently, and grow without debt. Receive's white-labeled partnership model empowers Independent Sales Organizations (ISOs), payment processors, software providers, and more, to leverage first-party data, unlock a new revenue stream, identify growth opportunities, deepen merchant relationships, and gain a competitive edge. Receive has partnered with Titanium Payments to launch the Titanium Boost Business Mastercard®, bringing Earned Revenue Access to Titanium Payment's network of small businesses. The Titanium Boost Business Mastercard, powered by Receive, converts pending settlements into real-time spending power for Titanium merchants. This reflects Receive's mission to build a smarter, more flexible financial ecosystem that helps SMBs grow on their terms. 'From e-commerce to Main Street, cash flow is a universal challenge that limits growth. We recently supported a local mechanic who was struggling to scale because he was waiting on funds to settle before purchasing parts for upcoming jobs,' said Blum. 'Delays or costly financing can severely disrupt progress. With Titanium Boost, businesses can access revenue on their terms, keeping operations running smoothly.' To put control back in the hands of small businesses, Receive launched the SmartPay Calendar—a self-driving repayment tool that turns cash flow from a challenge into a competitive advantage. Merchants choose when to repay Receive, with the option to earn more spending power by paying early. Receive is setting a new standard in financial management to help SMBs grow faster, operate smarter, and stay in control of their cash flow. Ariel Blum, Receive CEO & Founder About Receive Receive is a U.S.-based financial technology company revolutionizing how small and medium-sized businesses manage cash flow. Backed by NextGen Venture Partners and leading investors, its Earned Revenue Access platform provides real-time access to revenue, enabling SMBs to operate with greater agility, flexibility, and financial control. The Titanium Boost Business Mastercard is issued by Patriot Bank, N.A. (Member FDIC), under license from Mastercard International Incorporated, and is accepted anywhere Mastercard is accepted. Contact Mr
