Merchant Cash Advance
What is a Merchant Cash Advance?
A merchant cash advance (MCA) is a type of finance for businesses that accept card payments. A lender provides a cash advance as a lump sum, which is paid back through card sales.
Why Choose a Merchant Cash Advance?
There are no fixed monthly repayments, instead you pay back a % of your card sales. An MCA is therefore ideal for seasonal businesses or businesses whose turnover fluctuates.
How it works:
In an MCA the lender purchases the future card sales of your business and advances you the finance you require based on your current average monthly takings.
Merchant Cash Advances at a Glance
Eligibility:
Businesses trading at least 6 months. Must be taking card payments with a minimum volume of £5,000 per month.
Security:
Unsecured. No security or business plan required. Poor credit history considered.
Loan Amounts:
Borrow from £10,000 - £1m
Turnaround times:
Funds advanced into your bank account within 48 hours.
Interest Rates:
No APR rate. Transparent fixed fee.
Repayment terms:
Repaid as you earn as a fixed agreed % of daily card sales only when you are paid by your customers.
Quick, Flexible Financing for Card-accepting Businesses
At Elite Business Funding, we offer merchant cash advances (MCA) for businesses that accept card payments. An MCA allows you to access funding based on your future card sales, providing fast access to cash when you need it the most. Whether you’re running a seasonal business or experiencing fluctuating sales, an MCA can be a flexible solution to support your operations and growth.
What is a Merchant Cash Advance?
Merchant cash advance loans allow businesses to borrow money against their future credit and debit card sales. The amount you can borrow is based on your business’s average monthly card sales, making it an ideal option for businesses with fluctuating or seasonal revenue. This type of funding is unsecured, meaning you won’t need to provide collateral. Repayments are made automatically through a small percentage of your daily card sales, providing a flexible, manageable repayment structure that adjusts with your cash flow.
With borrowing amounts ranging from £10,000 to one million, our business cash advances provide the financial flexibility you need to manage day-to-day expenses, invest in growth, or handle unexpected costs. The process is simple and quick, with funds often released within 48 hours.
Why Choose a Merchant Cash Advance?
Businesses are increasingly opting for a merchant cash advance UK, particularly those with variable or seasonal income streams. Here’s why an MCA could be the right choice for your business:
- Flexible Repayments. Repayments are linked to your sales, so they adjust with your cash flow. This is perfect for businesses with fluctuating or seasonal revenue.
- Quick Access to Funds. Get the funds you need in as little as 48 hours.
- Simple Repayments. Repayments are automatically deducted via your existing payment terminal, making the process smooth and efficient.
- 85% Approval Rate. A high approval rate means more businesses have access to this financing option.
- No Collateral Required. Unlike traditional loans, no assets are required as security.
- Viable for Adverse Credit. Even businesses with less-than-perfect credit histories may qualify for PDQ finance.
Key benefits of a Merchant Cash Advance:
- Flexible repayments that fit around with your cash flow
- Ideal for businesses with seasonal or fluctuating turnover
- Quick turnaround with funds available within 48 hours
- Hassle-free repayments via your existing payment terminal
- 85% approval rate
- A viable option for those with adverse credit
How does a Merchant Cash Advance work?
In the case of an MCA, the lender purchases the future card sales of your business and advances you the finance you require based on your current average monthly takings. Repayments are automatically deducted as a small, agreed percentage of your daily card sales (typically between 10% and 20%).
The loan is then repaid over a period until the balance is paid off. You can choose with some lenders to pay back a higher % of your sales, if, for example, you wanted to pay back more quickly. If you choose a lower % repayment, the loan will take longer to repay, and usually carries a higher interest charge as a result.
Our lenders have agreements with all the major card acquirers meaning set up is simple and you will notice almost no difference in your existing process and will not be required to change your terminal or provider. You will continue to receive your takings paid into your bank account each day minus the agreed percentage, which will automatically be sent to the lender to go towards repaying your loan balance.
What types of businesses are suited to a Merchant Cash Advance?
Merchant cash advances are ideal for businesses with fluctuating turnover. They are particularly popular in industries where sales vary throughout the year, offering seasonal business loans that provide flexibility during both high and low periods.
Some of the businesses that benefit from MCAs include:
- Pubs and bars
- Retail businesses
- Online retail businesses
- Hair and Beauty salons
- Hotel and B&Bs
- Garages and MOT service stations
- Restaurants and food outlets
- Vets and dental practices
Businesses seeking hospitality finance are particularly well-suited to merchant cash advances, as they often experience fluctuations in sales due to seasonal demand. MCAs can be used as hospitality loans, offering flexibility during both busy and quieter periods, with repayments directly linked to daily card sales.
If you’re unsure whether a merchant cash advance is right for your business, get in touch with our team. We’ll be happy to discuss your needs and help determine if this type of finance is suitable for you.
To discuss if an MCA is suited to your business, please contact our team today.
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