If your income moves with the till, your repayments should too. A merchant cash advance is repaid as a small share of each card transaction, rising and falling with your sales through the seasons.
A merchant cash advance (MCA) is a type of unsecured business loan ideal for businesses with a larger percentage of revenue tied to card sales (such as retailers and hospitality businesses). It provides a fixed funding amount with flexible repayments, based on your card sales so it’s always affordable for the business.
The lender reviews your recent card takings and advances a sum, often around one month’s card revenue. A fixed fee is agreed upfront, so you know the total cost from day one. Then a percentage of every card payment goes towards the balance until it is cleared. Busy periods repay it faster, quieter ones ease off.
Typically around one month of average card takings, sometimes more for established businesses. Six months or more of consistent card revenue is usually the starting point for lenders.
Not in the traditional sense. There is no fixed term or fixed monthly repayment. You repay a set total, agreed upfront, through a percentage of card sales, however long that takes. That flexibility is the appeal for businesses with variable takings.
Restaurants, bars, cafes, salons, retailers and any business where most income arrives by card. If cash and invoicing make up the bulk of your revenue, one of our other funding routes will likely serve you better, and we will say so honestly.
A good conversation costs nothing and often opens more doors than you would expect. Tell us where you want to take your business, and we will show you how the right funding can help you get there.
