MCAA White Paper
The MCAA community NFT is the first step towards a global small business journey into the world of decentralized connectivity, utilizing Web3, crypto currency bringing the digital transformation of small business into the future. Each MCAA NFT provides access to a unique set of resources and experiences curated by MCAA and provides governance over the NFT growth via a decentralized autonomous organization (DAO), giving each token a vote in the future direction and growth of MCAA NFT’s mission to revolutionize small business connectivity. These NFTs will live on the Ethereum blockchain as an ERC-721 token managed by its respective smart contract.
​
The MCAA NFT community will be made up of a diverse cross-section of the stakeholders including business owners, consultants, funders, finance experts, solutions providers, investors, mentors, and consumers. The goal is to bring all these parties to the virtual table in order to facilitate the spread of our growth and management system - the Art of Doing Good Business.
​
Our community is about the Art of Doing Good Business - meaning encouraging small business growth in a positive, ethical, effective, and accessible manner. Small businesses are the backbone of the US economy and currently employ nearly 50% of all US employees, yet small businesses are typically underserved and don’t have access to the management resources and capital network enjoyed by larger businesses.
MCAA has a history of incorporating honesty and integrity in building business relationships. From our founding eight years ago, we have managed to build an industry leading company founded on these principles. While the founders and management of MCAA NFT have privately transacted over $4 Billion in small business growth to date, our greatest accomplishment has been the development of a management, training and growth strategy built on core principles, that we collectively term the “Art of Doing Good Business”. Teaching this path to others and spreading an awareness to all businesses about the rightness and effectiveness of this model is central to our mission.
With the launch of the MCAA NFT we can now provide a solution to a community of like-minded people, hoping to accomplish the same energy. MCAA NFT is a combination of access to a community focused on growth oriented business practices and atypical delivery mediums via the Web3.
We are the MCA industry’s foundation of progress and creativity. We achieve what others overlook, blending the art of business with innovation, and paving the way where others hesitate to go.
Value in Joining the MCAA
Origin of the MCAA
-
Merchant Cash Advance (MCA) began in the late 1990s as an innovative solution for small businesses that struggled to secure traditional financing. By offering upfront cash in exchange for a share of future revenues, MCA provided businesses with fast and flexible access to capital when they needed it most.
-
Initially tied to credit card terminals, MCA’s repayment model—withholding a percentage of daily transactions—was particularly well-suited for retail and service industries. Despite its usefulness, the industry faced criticism in its early days, with accusations of high costs and a lack of transparency, which led some to label it as “legal loan sharking.”
-
Over the years, the MCA industry has evolved, addressing many of its early challenges. Today, it is a multi-billion-dollar sector, offering a vital financial lifeline to small businesses across the U.S. Early players such as Pearl and Rapid Funding helped establish the industry’s foundation. As the MCA model gained traction, every major bank eventually entered the space, further legitimizing the industry (i.e. OnDeck going public on their platform).
-
Today, major companies, including American Express, PayPal, Square, Walmart, Goldman Sachs, Chase, and Wells Fargo, have since joined the MCA space, recognizing its value and expanding its reach. MCA has become an essential solution for helping businesses manage cash flow, invest in growth opportunities, and navigate challenges in an ever-changing economy.
-
During the economic collapse, MCA providers played a critical role in delaying further market deterioration. While traditional banks failed, losing everyone’s money and withholding lending despite receiving a $700 billion TARP bailout intended for Main Street, MCA companies took on significant risks. Many issued advances that they couldn’t fully recover, absorbing losses to keep businesses afloat. Meanwhile, big banks that had caused much of the crisis rewarded themselves with record bonuses, leaving small businesses underserved. (Read more in our Newsroom).
-
In the years following the crisis, particularly from 2009 to 2010, MCA pioneers such as Pearl, CAN Capital, and OnDeck reignited the industry by recognizing the market was ready to take risks again. They resumed funding, enabling businesses that previously couldn’t access capital to secure the resources needed to grow. This resurgence not only revitalized local economies but also proved that MCA was a resilient and indispensable financial solution.
-
Since then, the MCA industry has grown exponentially, with every major bank eventually entering the space. What began as a niche market for alternative financing has evolved into a vital pillar of the financial ecosystem, demonstrating its ability to support small businesses when traditional lending falters and helping to push the economy forward.
-
Ironically, the very banks that contributed to economic crises such as the 1989 savings and loan collapse and the 2008 financial meltdown are now entering the MCA space. These institutions, whose actions caused widespread market instability, are positioning themselves as participants in an industry that was built to fill the gaps left by their failures. (Read more in our newsroom).
-
The entry of major banks into the MCA space raises concerns about their ability to operate ethically in this market. Their history of prioritizing profits over responsibility, as evidenced by their role in past financial crises makes them ill-suited to lead in a business built on providing lifelines to underserved businesses. For instance, Wells Fargo created millions of unauthorized accounts without customer consent, leading to a $3 billion settlement; Bank of America engaged in illegal market manipulation through spoofing U.S. Treasury markets; and Goldman Sachs misled investors during the 2008 financial crisis, resulting in a $5 billion settlement. These are but a few examples of the last entities that should dominate a space created to mitigate the damage they caused.
-
Beyond the issue of banks entering the space, the MCA industry itself faces challenges due to bad actors employing misleading and unfair practices. Techniques such as stacking, backdooring, and card doting have eroded trust in the industry. These practices not only harm businesses but also tarnish the reputation of MCA providers who operate ethically.
The Solution
-
Collaborate Through the MCAA: Use the MCAA as a platform to unite funders, brokers, and stakeholders, fostering collaboration, education, and networking opportunities to drive shared success.
-
Establish Good Business Practices: Commit to ethical standards and transparency to build trust, strengthen individual companies, and ensure long-term industry success.
-
Self-Regulation and Advocacy: Create self-imposed regulations to address unfair practices, and organize lobbying efforts to influence policies that protect and strengthen the MCA industry.
-
Unite as a Collective Voice: Form a union to define acceptable practices, advocate for fair policies, and provide a unified voice to promote the industry’s interests.
Merchant, TX
"Joining the MCAA has been a game-changer for my business. The networking opportunities have connected me with reliable funders who truly understand the needs of small merchants like me. It’s a platform built on trust and transparency, and I couldn’t be happier to be part of it."
MCA Brokerage, NY
"MCAA has provided us with invaluable tools to grow and connect with like-minded professionals in the industry. The events and resources offered have elevated our visibility and helped us align with ethical practices. It’s refreshing to be part of a community dedicated to advancing the MCA sector."
Funder, CA
"The MCAA has been instrumental in helping us bridge the gap between merchants and funders. The collaborative environment and the insights shared through their programs have allowed us to serve our clients better and streamline operations. It’s an essential part of our success."