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.
With very little paperwork, the process is also fast and simple