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A merchant cash advance (MCA) is a type of loan that provides your company with an upfront sum of cash. This loan is intended to be used for everyday costs, expenses and growth opportunities. This type of financing is typically used by businesses that need quick access to cash but don’t qualify for traditional loans or don’t want to take on additional debt.
The loan is then repaid using future debit and credit card sales or monthly instalments over 3-12 months. Lenders add a fee onto your repayments, which varies in value between providers.
Merchant Cash Advances are an alternative type of business loan designed to give small and large companies some working capital. This option is ideal for businesses who take regular card payments.
How To Apply For A Merchant Cash Advance
- Click ‘apply now’ and fill out our quick form. Our team will respond within minutes.
- You will be asked to submit 3 months of bank statements and other records, as well as granting us secure access to your account’s transactional data. After you submit your application, the lender will assess whether you qualify for a merchant cash advance. If you are approved, the lender will provide you with the terms and conditions of the advance.
- Once you accept the terms, the funds will be deposited into your business bank account, usually within a few days.
Speak To Us For Merchant Cash Advances For:
- Bars
- Cafes
- Car dealerships
- Fashion stores
- Hotels
- Restaurants
- Shops
- Startups
- Supermarkets
- Tech companies
What Companies Are Merchant Cash Advances Best For?
Any company that frequently makes transactions can benefit from a merchant cash advance. This includes retail stores, restaurants, salons, spas, gyms, dental clinics, cafes, water parks, travel agencies, supermarkets, and petrol stations.
Where Can I Find Merchant Cash Advances?
We are a merchant cash advance broker across the whole of the UK including London, Bristol, Birmingham, Leeds, Cambridge, Glasgow, Edinburgh, Nottingham, Manchester, Sheffield, and Leicester.
What is the Eligibility Criteria for a Merchant Cash Advance?
The eligibility requirements for a merchant cash advance may vary from lender to lender. However, most lenders will look at similar factors to determine if a business is eligible, and these may include the following:
- Time in business: Lenders typically require businesses to have been operating for at least 6 months, although this duration may vary.
- Monthly revenue: Businesses with consistent monthly revenue tend to be more likely to be approved.
- Credit score: Merchant cash advances are often available to businesses with poor credit, but occasionally your credit score may be checked. However, most lenders prefer to consider your business’s overall financial health and revenue potential.
- Industry type: High-risk industries may be less likely to be approved.
- Payment processing: Lenders may require businesses to use a specific payment processor in order to make repayment go as smoothly as possible.
What Information Do I Need to Provide To Apply?
Each application is processed on a case-by-case basis, and you can speed up the process by having the following information ready:
- 3 months worth of business bank statements: You will need to provide bank statements to prove your business’s financial health and revenue potential.
- Owner’s proof of identity: This can be a driver’s licence or passport, for example.
- 1 to 2 years business tax returns: This is to verify your financial information.
- A business credit check: You may also be asked to provide credit card processing statements on top of this
What is a Merchant Cash Advance Loan Used For?
Merchant cash advances are typically used by businesses to obtain quick access to funding for reasons such as:
- Purchasing inventory or equipment
- Paying unexpected expenses
- Managing cash flow during slow periods
- Marketing and advertising
- Investing in staff training
How Much Does a Merchant Cash Advance Cost?
The cost of a merchant cash advance in the UK will vary depending on the lender and the terms of the advance, but they generally tend to be more expensive than traditional loans.
You should also keep in mind that there may be other fees associated with a merchant cash advance, such as:
- Origination fees
- Processing fees
- Early repayment fees.
Merchant Cash Advance Cost Example
The cost of a merchant cash advance is typically determined by the factor rate, which is a multiplier applied to the amount of the advance. For example, if a lender offers an advance of £50,000 with a factor rate of 1.3, the total amount owed would be £65,000 (50,000 x 1.3).
Can I Get a Merchant Cash Advance On The Same Day?
Yes, it is possible, although it will depend on the lender and their processes. Many lenders that offer merchant cash advances are able to offer fast funding and may be able to provide funding within 24 hours of application, or even the same day.
To increase the chances of same-day funding, it is important to have all the required documentation at hand when applying.
Can I Get a Merchant Cash Advance With No Credit Check?
Sometimes. Not every lender requires a credit check before providing a merchant cash advance. This is because many lenders prefer to focus on how your business is currently doing, and how they expect it to do. The lenders who prioritise your business’s current financial health over its credit history will generally not require a credit check.
Who Can Qualify For a Merchant Cash Advance?
Businesses who accept credit card payments or have other forms of regular revenue will typically qualify for a merchant cash advance as long as they are considered safe.
How Are The Rates Determined For Merchant Cash Advances?
The rates for merchant cash advances are typically determined by a factor rate rather than an interest rate. This is a decimal figure that is multiplied by the amount borrowed to determine the total repayment amount, and ranges from 1.0 to 1.5.
The factor rate is determined based on several factors, including the business’s credit card sales history, the amount of the advance, and the repayment terms.
Do You Work With Direct Lenders?
Yes, we work with various direct lenders in the UK, all of whom are licensed and experienced in handling merchant cash advance inquiries. All our lenders are accustomed to providing funding within 24 hours.
Our service is completely free, and we do not share your information with any other companies or providers without your consent. There are no fees involved, and utilising our service will not have any impact on your credit score.
What Happens If I Can’t Pay Back My Merchant Cash Advance?
If you are unable to make timely repayments or if your business suddenly experiences a decrease in cash flow, you may face additional fees, penalties, and a potential negative impact on your credit score.