Capital Finance Group
Merchant Cash Advance
A merchant cash advance provides upfront funding that is repaid through a percentage of your future card sales. Because repayments rise and fall with your takings, it can suit businesses whose income varies from week to week or season to season.
Speak to a Business Finance SpecialistMerchant Cash Advance
It is a product that suits some businesses well and others less so. We will look at your card turnover and trading pattern and talk through the total cost compared with other options, so you can decide with confidence.
Who it suits
- Retailers, restaurants, cafés, bars and hospitality businesses
- Salons, gyms and other service businesses that take card payments
- Businesses with fluctuating or seasonal trading
- Owners who want funding linked to sales rather than fixed monthly repayments
How it works
- The provider assesses your recent card transaction history to determine how much can be advanced
- You repay an agreed total amount, collected as a fixed percentage of card takings
- When trading is busy you repay faster; in quieter periods repayments reduce
- There is usually no fixed term, and facilities are generally unsecured
- Some providers also offer versions linked to wider business bank receipts
Things to consider
- The cost is normally expressed as a fixed fee rather than an interest rate, so it is important to understand the total amount repayable
- A merchant cash advance can work out more expensive than other forms of finance, particularly if repaid quickly
- You may need to use a particular card terminal or payment provider
- Personal guarantees may still be requested
Take card payments and need a flexible boost to cash flow? Speak to an expert to see whether a merchant cash advance fits.
Finance is subject to status and lender criteria.
Interested in Merchant Cash Advance?
Take card payments and need a flexible boost to cash flow? Speak to an expert to see whether a merchant cash advance fits.
Speak to a Business Finance Specialist