What is a Merchant Cash Advance?

Last post: Jul 18, 2018

What is a Merchant Cash Advance? A guide on an increasingly popular type of loaning in which you can pay back your loan using payments made through your card terminal. An option for businesses which operate on a seasonal level.

A Merchant Cash Advance is a loaning option that was imported from America 2007/2008 with a growing popularity in the UK in the past 4 years.

A Merchant Cash Advance allows you to raise finance based on your credit card terminal turnover on a monthly basis. Your proven average monthly turnover is typically the amount you can receive a merchant advance loan for. If you make £5000 per month through your card terminal for 12 months, you are likely able to loan up to £5000.

What you can show is your average monthly turnover tends to be what you can get depending on the loaner, and you are able to repay this amount (additional of a fee) by agreeing to give a small percentage (usually 10-15%) of all card receipts to the advance provider until the loan is paid off. It's an easy-option because this is done automatically at the terminal with each transaction and you don't have to change your card processor.

  • Get up to your monthly average turnover as a business cash advance
  • Repay by giving a percentage of card sales towards repayment. No deadlines.
  • Very flexible with adverse credit histories but minimum trading time is 9 months
  • No need to change your card processor

Can I get a Merchant Cash Loan if I don't take card payments?

We can look instead at a Revenue Advance (based on sales) or a Short Term Unsecured Business Loan. Call us on 01494 410 125 to discuss.