Business financing simplified

Merchant Cash Advance

Business financing simplified

Merchant Cash Advance
in a nutshell

A merchant cash advance (MCA) is a type of unsecured, short-term business finance. It is an innovative loan product that uses your card terminal and its’ receipts to secure lending.  It has proven popular with certain sectors such as retail, restaurants, and general leisure sectors.  It is designed to help businesses gain access to their cash in a flexible way as repayments are taken as a proportion of revenue.

The way it works is; the lender will provide you with a sum of money which is paid back in installments through a percentage of your customer card payments. The amount that is repaid will be agreed upon with your lender and this will be taken from each card payment made to you as a percentage amount. So, the more you sell,  the more you pay back and the faster your loan is cleared. 

Any businesses that use a credit card terminal will benefit from merchant cash advances, which are easier to obtain than other forms of business financing. Enterprises with little or no assets can benefit from a merchant cash advance, as can businesses with a low credit score who need money for expansion.

Some of our lenders

Compatible

Frees up other forms of finance. You can get other forms of finance whilst using a merchant cash advance.

BENEFITS

Flexible

Repayments are both flexible and scalable. Because repayments are made as a percentage of card revenue, they change in proportion to your business’s income, therefore if you are having a tough period financially, then your repayments flex for this.

BENEFITS

Speed

Approvals can be very quick, making it a good option if you have an urgent funding requirement.

BENEFITS

Simple

The payments come straight from your card machine, so repayments are much more straightforward and efficient.

BENEFITS

Who is Eligible?

  • Businesses that use card terminals as a form of payment.
  • 2+ years track record of merchant statements.
  • Seasonal businesses 
  • Good or bad business credit.

How does it work?

1. Application: Share your last few years financials, merchant statements and personal details.

2. Assessment and setup: See how much you qualify for: typically 100%-120% of monthly revenue.

3. Funding: Once approved and agreed, funds will be released and daily direct debit will be set up.

How Much Does It Cost?

FAQ's

Applications can be quick – once documents are submitted, funds can be drawn in as little as 48 hours.

Unlike a secured loan MCAs are a shorter form of financing. Facility terms vary due to seasonality and trading performance but, the average facility term lasts 9 months but depending on the frequency and volume of card transactions being paid this term could be shorter or longer.

In some ways, yes, invoice finance is similar to a merchant cash advance, except the MCA is perfect for B2C customers, compared to B2B for invoice finance. They are similar in that both products free up your future cashflow. Different from invoice finance, the funds are all released up front as a loan and  the repayments are made as a percentage of your revenues, which is much more flexible than invoice finance.

Qualifing questions

Can I Borrow?

Get Invoice Finance

Please pop your details in the form below and we’ll get back to you within 24 hours.

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Get Invoice Finance

Please pop your details in the form below and we’ll get back to you within 24 hours.

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