Merchant Cash Advance
Pay back little by little, through your customers card transactions
Merchant Cash Advance
simple funding for your business
How to turn your card machine into a Cash machine
A Merchant Cash Advance (or Business Cash Advance) is a great way for any type of business who accept card payments to raise funding or much needed working capital
Popular with convenience stores, hospitality, pubs, restaurants and takeaways, as well as sole traders this versatile finance is a great way to refresh your business
With no interest to pay and flexible repayments, it’s a perfect match for your cash flow
This is open to anyone who has have been taking card payments of at least £2,500 per month and for 3 months or more and it is also a great opportunity to grow your business with quick, effective cash flow money
Cash Advance decisions are generally same-day or within 24 hrs, with the funds in your
bank account typically within 2 – 3 days of your enquiry!
Typically, lenders will finance a maximum of one month’s card takings, with that paid back over 8-12 months and some lenders will even take into account your total business turnover
The exact size and length of the advance will vary by lender and your credit profile
A Merchant Cash Advance is not classed as a loan so this doesn’t incur interest charges
Instead, there is a fixed fee known as a factor rate which is applied to the advance and depending on
the length you decide to take you would pay less the quicker the money is paid back
Cash Advance repayments are collected from your card takings before you receive them
So there is no need to worry about making payments on time or having to pay more later
There is no delay in your card receipts being received, so you won’t even notice the difference
Is it time to expand your business or get that working capital your business needs?
Alternative finance for small businesses with poor credit scores
A poor credit score shouldn’t stop your small business from securing funding through our alternative, unsecured cash advances.
When things are going well, you pay
more back each month.
But if the business is going through
a lean period you’ll pay a smaller amount.
Repay Only When You Get Paid!
Merchant Cash Advances are repaid as a percentage of your actual daily card takings, ensuring the repayments match your cash flow
Merchant cash advances are one of the most innovative products in alternative business finance.
Put simply, a merchant cash advance uses your card terminal to ‘secure’ lending — perfect for businesses without many assets, but who have a good volume of card transactions every month.
Merchant Cash Advance FAQ
How does a merchant cash advance differ from a normal business loan?
A merchant cash advance is a better alternative to a bank loan.
The main difference between a merchant cash advance and other types of business funding is that you only repay when you get paid.
The two other differences between a merchant cash advance and a business loan are:
No fixed repayments: A merchant cash advance works by taking a small percentage of your daily card takings until it is repaid in full.
No fixed term: How much and how quickly you repay is directly tied to how much you have been paid.
When things are going well, you will pay back more.
But if the business is having a leaner period, you will pay back a smaller amount
This is done automatically via your card terminal – so you don’t have to worry about remembering to make repayments.
A flexible and automated repayment system offers peace of mind for busy business owners and many types of business with fluctuating or seasonal revenue.
What is the Interest Rate?
There is no interest rate as such or APR but there is a fixed cost as a small percentage for the finance.
For example, a business receiving £10,000 could look to repay a total of £12,500 and the funder will simply take a small percentage of each of your card sales until the £12,500 has been repaid.
The actual % will be agreed with you at the offset, depending on how quickly you wish to pay it off
Merchant Cash Advance
Get an instant decision and approval within 24 hours.
What are the criteria?
You must have been trading a minimum of 6 months, and have a minimum monthly turnover of £3,000 in card sales
How much could you get?
This will depend on your monthly turnover and card sales with some of our partners able to fund up to 150% of card turnover.
How soon can I get funded?
Deals can be processed in as little as 24 hours but typically between 3 – 5 working days
Will you need to switch your card terminal provider?
No – a flexible funding solution is designed to work around your current arrangement and keep paperwork and set-up to a minimum.
But we can also look at your current card processing pricing to see if we can help there also
How does this Merchant Cash Advance differ from other providers?
How much you can borrow is based on the total business turnover (and not just card revenue)
so there’s a higher chance of being approved for a larger amount.
Get in touch
Whether you are new to Card Processing or have an an existing account elsewhere, we would love to hear from you.