Frequently Asked Questions - Merchant Cash Advances
What is a Merchant Cash Advance?
A Merchant Cash Advance is one of the newest and easiest ways to get business funding in the UK. It has existed you many years in the US and is now available to UK businesses.
It's slightly different from a regular business loan. It's actually a cash advance which is based on the average volume of your credit card transactions that your businesses processes each month.
Important Note: Businesses who invoice their customers, and who do not receive customer payments by credit card, can easily release working capital through accounts receivable factoring and debt factoring. They can also avail of low cost bridging finance, asset finance, mezzanine funding as well as commercial mortgages.
What are the benefits of a Merchant Cash Advance?
- Very Fast Approvals — normally within 24 hours
- Super Fast Funding £3,500 to £150,000 — after approval (normally within 15 business days)
- Great Flexibility — use your merchant cash advance for any business funding needs
How can I qualify for a Merchant Cash Advance?
Although we can be flexible, most Credit for Merchant's applicants have:
- Been in business for more than 12 months
- Two business references
- Average monthly credit card sales of more than £3,500
- Payments from customers by Visa, MasterCard or Debit Cards
- Ability to show rent/mortgage payments are up-to-date
What can a Merchant Cash Advance be used for?
You can use your merchant advance for any business need; for instance, you can use it to pay off bills, get new equipment, expand your business, or add additional staff. The choice is up to you.
Will a Merchant Advance affect my Credit Rating?
Your Merchant Advance is not a loan, and therefore it will have no affect on your credit rating.
Will I receive monthly bills and Statements?
Repaying a Merchant Advance is very simple. You get to choose your terms, and a fixed percentage of your credit card receipts is collected each day. You will not receive any bills, but you will get a monthly statement showing your current balance.