[jotucker1983]

Cardinal Equity,

I'm totally with you on the lack of creativity in the industry, with everybody seeking to do the same thing. I think this is a good discussion we are having here, because my point of view is to try to truly "estimate" how big is the "real market" for MCAs in the US?

Yes, there's 28 million entrepreneurs, but only about 5 million would qualify generically for an MCA product. But how many of those 5 million would ever truly entertain a product with very high costs and short payback cycles?

Is the reason for there being so many virgin MCA merchants (never took an advance out prior), because they have never heard of the product? Or is the reason because the product is too high and the payback cycles are too short?

I tend to side on the camp that says it's because the product is too high, which means of that 5 million that generically qualify, how many of these businesses would realistically under certain circumstances, take out an advance? I say the range would be no higher than 2% (100,000) to as low as 0.5% (25,000).

But I could be wrong though.