merchant cash advance manchester

Merchant cash advance

Utilise your credit card turnover to leverage finance for your company

Merchant cash advance finance is a relatively unknown form of business finance but it is growing in popularity and offers new businesses and persons with adverse credit the ability to get unsecured finance for their business. I works by using your proven monthly card payments turnover. An average amount of card payments can be worked out and your business can leverage this against an advancement loan for the business.

You then repay this advance loan by having a fee of around 10% removed from your your card reader takings/receipts, this payment fee goes to the lender and repays your advance loan.

The great hing about the merchant cash advance is that it effectively get repaid in the background, the repayment fee is automatically taken from your card reader on each transaction, so as long as your average card payments do not drop below the average, you don’t have to deal with the loan repayments.

How a merchant cash advance works

  • Your average monthly card payments turnover is worked out based on the last 9-12 months of your businesses operations.
  • You are provided with an advancement loan based on this average turnover
  • You repay this advance loan in the background via a fee levied on you future card terminal payments.

Merchant cash advance FAQ

Do I need to offer collateral?

No, our merchant cash advance finance is unsecured.

 

How much could I receive as an advance loan?

The exact amount you can achieve depends on your average card payments over the last 9-12 months. Advance loans of up to £500,000 can be given, within the minimum amount being £3,000.

 

I have ad credit, can I get merchant cash advance financing?

Yes, due to the way the repayment work your credit rating isn’t a major concern for the lenders. We have in the past assisted with arranging merchant cash advance finance for businesses with CCJs, defaults and persons with IVAs and even discharged bankruptcies.

 

What interest do you charge on a merchant cash advance?

You cash advance loan would be subject to a repayment fee of between 20 and 35%. All other fees are absorbed within this, so there are no additional costs for set-up, admin, etc.

 

How is the advance loan repaid?

The repayments are automatically taken from your card payments. Depending on the fee you have agreed, you would have a percentage (usually 10-15%) taken from the payments you receive on the card terminal.

This fee would be taken from every card payment until your advance loans and its repayment fee have been repaid in full.

The great thing about this is that if your card transactions are low for a certain period you will not have a set loan repayment fee to try to find, you loan will just take a little longer to repy. And equally if you have a very good period of sales, with lots of card transactions, you will repay your merchant cash advance loan quicker.

So it don’t matter if you are doing very well, or poorly, your cashflow will not be impacted.

 

Do I need to change my merchant card supplier?

No, you can stay with your current setup, the process is handled directly with the terminal company, it does not work directly via your card terminal.

The merchant cash advance also should not effect the length of time it takes your merchant supplier to process your card transactions, so your money will get to your account at the same speed it does now.

 

Can I extend my merchant cash advance to get more money?

Yes, once you have paid back over 50% of your advance loan, you are eligible to apply for further finance.

My business doesn’t take card payments, do you have a cash advance service suitable fo me?

Alternative advance loans can be arranged yes. The criteria are a little different, but revenue finance or a unsecured business loan may suit you better.

 

What do I need to be eligible for a merchant cash advance?

You will need to provide at least 9 months of trading history including card terminal receipts. You would also need to prove that your either own your commercial property or have a lease with at least 6 months agreed.

If all of this sounds good and you think a Merchant cash advance is the product for you, please give us a call or email us to make contact.

Or if you feel that a Merchant cash advance package is not suited to your needs please check out our other business finance services.
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