What Is a
Merchant Cash Advance?
We know that business in the best of times can be pretty unpredictable. That is why the Merchant Cash Advance is the perfect solution for any business with an income that ebbs and flows. With a Merchant Cash Advance, your repayment is calculated using your monthly credit card transactions and you repay a percentage thereof.
We offer flexible finance solutions. Companies use our product for all sorts of purposes and work are suited for the Services, Restaurants, Retail, Medical/Healthcare or Auto companies as these businesses tend to have a fluctuating or seasonal trade. A Merchant Cash Advance can be helpful in industries such as these.
The beauty of this product is that you only repay when you trade. When business is slow, you pay less. There is no rush as the total repayable is fixed. Whether you repay in 3 or 14 months, the total repayable agreed on will remain the same.
- Get from £5k – £500k to grow your business
- Flexible solution for businesses with PDQ machines
- Qualify for a cash advance after 6 months of trade
- Repay via a small % of future card transactions
- Average monthly card turnover of £5K required
Our process fits into the busy lives of a business owner on the move. We do not require detailed business plans nor is there a need to make an appointment. Our process is flexible, quick, affordable and fully transparent - all of this without compromising on quality of service.
Apply for the loan amount you had in mind. Loan amounts can be as much as 100% of your average monthly card transactions.
Example A business that receives £6,000 per month through its PDQ machine, could qualify for an advance of £6,000.
Agree on the repayment amount. This is agreed upon between you as the business and Merchant Money LTD. This is based on a factor rate starting from 1.15.
Example: For a £6,000 MCA with 1.2 factor, the total repayable would be £7,200.
A fixed percentage is collected off your card transactions with no fixed term or fixed monthly repayments. How?
Example, if a customer pays you £100, £85 would go to you and £15 would automatically go back to Merchant Money.
Both the loan amount and the repayment amount is determined based on your business card transactions. This is worked out using the factor rate, starting at 1.15. The factor rate used, is subject to underwriting. This means that there is no hard and fast cost associated with a Merchant Cash Advance.
Merchant Cash Advance?
This solution is highly advantageous for a business with high seasonality and fluctuating cash flow.
- No fixed repayment periods
- You only pay as you trade; when the business is quiet, you pay less
- Top-ups available after 4 months
- No collections off cash payments
- Better cash flow
- Automated process with no manual payments from the customer
- We can work with all card terminal acquirers
Merchant Money offers this product to all UK based limited companies, sole traders and (unincorporated) partnerships. We offer flexible solutions for all UK businesses.
You will need to meet the following criteria:
- Minimum of 6 months trading through PDQ machine
- Minimum turnover of £5,000 per month through card terminals
- No other Cash Advance in place (unless to be refinanced)
Why choose a
Merchant Cash Advance?
At Merchant Money, we strive to always provide you with a sense of partnership. We want to get to know you and your business to ensure that we find the right solution. We understand that every business and its needs are unique. Our process is both straightforward and efficient. Should you meet the requirements, we can guarantee a 24-hour approval.
|How it works||Unlike a business loan, with a merchant cash advance, a lump sum is provided upfront, in return for a percentage of daily credit card sales.|
|Varied maturity date||This is variable and based on each individual business.|
|Repayment amount varies||This amount is based on a percentage of your businesses card transactions. The repayment amount is agreed upon upfront.|
|Primary qualifications||With a business loan, one is required to provide annual revenue documentation and personal credit score. With a Merchant Cash Advance, however, you will only need to provide your credit card sale history and personal credit score.|
When it comes to securing business finance, it’s vital to make an informed decision. We’ve answered some of the most commonly asked questions to help you in that task.
How much can I borrow?
We can provide you with an advance up to 120% of your average monthly card turnover, to use in any way your business needs. With a minimum amount of £3,500 and a maximum of £500,000.
How does it work?
Get up to 120% of your monthly card turnover upfront, then pay it back as you trade. You repay via a set percentage of future card transactions. The beauty of this product is that you repay at your own pace. You only repay when customers pay you.