A merchant cash advance is a quick, unsecured loan option for small business owners. No long application process like traditional bank loans, funding in days with flexible repayment based on monthly card sales.
We offer fast and flexible loans from £3,000 up to £2M with a term of 3 months up to 36 months, so businesses can keep spending on what matters most – your business.
This works perfectly for merchants as they will only ever repay the loan at the same level of commitment regardless of the peaks and troughs that we all know are inevitable in business. If you have a quiet month, you are not committed to paying a large monthly repayment, and this is what makes a Merchant Cash Advance so attractive to business owners requiring quick funding.
A Business Cash Advance enables you to achieve your business dreams. The finance is based on your current and future monthly card revenue/sales, with a loan amount of up to 175% of your income that can be used for any business-related expenses.
To be eligible for a merchant cash advance, a small business owner must have been in business for a certain amount of time and have a certain amount of monthly credit card sales. The application process for a merchant cash advance is relatively simple and can be completed online in minutes.
Once the application is approved, the small business owner will receive the funds in a few days. The repayment process for a merchant cash advance is based on a percentage of the business’s daily credit card sales. This means that the small business owner will make repayments daily or weekly, rather than a fixed monthly payment.
The lender typically advances a sum equal to your monthly card sales. Repayment involves deducting an agreed percentage (often 10%) from each card sale until the advance is fully repaid. For example, if you processed £100, you would retain £90, and £10 would be automatically paid to the lender via your merchant bank account.
A mix of factors, such as your industry sector, business credit rating, the volume of card receipts, and your turnover, determines the cost of an MCA.
The price is called the factor rate, and it is set at a fixed rate per £1 borrowed. Typical factor rates vary from 7p to 35p per £1 you borrow. (These variables would be expressed as factor rates of 1.07 and 1.35). Example: £1000 borrowed at a factor rate of 1.2 (20p per £1 borrowed), means you repay £1200.
Before applying for a merchant cash advance, you must understand how much funding you’ll need and over what period.
There are absolutely no hidden costs or fees when applying for a merchant cash advance.
Complete the simple online application form to get your free no obligation quote today.
As a Merchant Service Provider located in Nottingham, we pride ourselves on taking a unique approach. We offer something that many providers shy away from: a clear and transparent selection process that’s upfront and honest.
Directory of Nottingham Financial Services
Suite 14
Arnold Business Centre
Brookfield Road
Arnold
Nottingham
NG5 7ER.
