Merchant Cash Advance is a new unsecured business loan alternative. It’s a short-term cash injection between £2,500 and £300,000 which is linked to your card receipts. Repay a small percentage back everytime you take a payment.
What is Merchant Cash Advance?
In short a Merchant Cash Advance is a loan which is “linked” to a Businesses card terminal. Every time a card payment is taken from a customer a small percentage is used to repay the loan.
To begin with Merchant cash advance is a new product on the market which has only been around for a short number of years. The concept is market leading and is growing in popularity as an alternative to the traditional business loan or overdraft.
How does it work?
Generally a lender will provide a loan of between £2,500 and £300,000 based on the average monthly card takings through a merchant card terminal.
Our lenders will usually advance up to 125% of the average monthly card takings e.g. £50,000 average monthly card takings would allow a loan of up to £62,500 to be provided.
Once the loan has been provided this will then be repaid by a small percentage of your daily card receipts. The percentage can vary from 5% to 30% depending on how much loan is taken and how long it is expected to be repaid.
Furthermore the percentage taken to repay the loan is set in advance which makes it very easy to understand. It also means that the Business does not have to find the traditional monthly repayment to pay back a loan.
Can I get a Merchant Cash Advance?
Most Businesses who take card payments and can demonstrate a history of card takings will qualify for a facility. As the card payments become primary source of repayment most Merchant Cash Advance lenders will accept applications from all backgrounds. This means that if you have been declined elsewhere then you will likely get approved for a cash advance.
The key conditions to meet are as follows:
- Trading for 4 months or more.
- Card takings are in excess of £2,500 per month
What are the benefits?
- Flexible Repayments
- No fixed monthly repayment.
- No APR’s to worry about.
- Funding up to £300,000
- All credit backgrounds considered.
How to apply?
Applying for a Merchant Cash Advance is very simple. Enter your details below or call 0161 8211478 to speak with one of our specialists.
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