Find Out More About Your Merchant Cash Advance
What Is A Merchant Cash Advance? An Alternative Funding Solution for SMEs
Quite simply, a merchant cash advance is not a loan. It’s an advance on the revenue your business is predicted to generate through its future debit card and credit card sales. Having only been around for a few years, it is considered one of the most innovative alternative funding products currently on the market.
In A Nutshell...
Your business can receive an instant cash injection of £5,000 - £500,000, which you then repay comfortably, using a small percentage of your future customer card payments.
Because you only pay back a percentage of your earnings, repayments are always nicely in sync with your business’ cash-flow. In other words, if you earn less one day, the amount you repay is also suitably smaller.
Applying for Cash Advances Online How Does It Work?
We know you’re busy, so we’ve designed a paperless application process that is quick and easy to complete. You can apply for a business cash advance online; on the go, or from the comfort of your own home.
The application form itself takes just minutes to complete, and unlike the banks, there’s no need to prepare a business plan or attend any meetings.
Recieving A Decision
We’re able to deliver decisions within just 10 minutes, and if approved, you can access the funding your business needs in as little as 24 hours.
When you reach the approval stage, you’ll receive an offer detailing the amount of funding you are eligible to receive, along with the percentage of future card sales that you will be expected to pay back. Everything is agreed upfront, prior to the exchange of any funding, so you will never encounter any unexpected costs.
How Do I Repay A Merchant Cadsh Advance?
Repaying a merchant cash advance is straightforward and hassle-free. The lender will work directly with your card terminal processor to automatically withdraw a small pre-agreed percentage of your total daily card sales.
Repayments will continue in this way, until the amount borrowed, plus a single all-inclusive fee, are repaid in full. There are no fixed repayment periods and there is no interest charged on the amount borrowed. In other words, you only pay back when your customers pay you.
What Are The Perks? Reasons To Get A Merchant Cash Advance
Favoured by UK SMEs for its simplicity and unique flexibility, a merchant cash advance is an alternative funding solution that comes with an abundance of benefits:
It is far easier to qualify for alternative finance than it is a business loan from the bank. You don’t need to provide a business plan to qualify, and approval is subject to your business’ performance, not just your credit score.
Lightning Fast Funding
Business’ can access the working capital they need to grow within just 24 hours. Because it’s so easy for a lender to assess how much revenue your business generates in an average month, they’re able to reach a decision, make you an offer and agree repayment terms incredibly quickly.
There is no interest charged on the amount borrowed. Ever. Instead, you receive just one clear, all-inclusive fee.
Unsecured & Low Risk
Business cash advances are entirely unsecured, which means you don’t need to secure funding against your valuable assets. It’s an ideal solution for any small business that generates a good volume of card transactions but has little valuable assets.
Flexible Not Fixed
There are no fixed repayment periods and you keep 100% of the money you make through cash sales. Because you only pay back a small percentage of your daily card sales, repayments are always in sync with your business’ cash-flow.
For many small business owners a merchant cash advance offers unrivalled reassurance that they can always afford to make repayments. If business is slow one day, and you make less money, the amount you pay back to the lender is also suitably smaller.
Better still, when business is booming, you can pay back a larger amount and repay the advance much quicker than you originally expected.
Will Your Business Qualify? Who Can Get A Merchant Cash Advance?
In theory, any business that takes regular card payments can qualify. While business loans from the bank are notoriously difficult to obtain, especially if you’re a small business, with an advance it is far easier to gain approval.
As approval is primarily dependent upon your business’ performance, lenders focus far less on your credit score, meaning that a much wider range of businesses are able to qualify. There’s no need to provide a business plan, attend any meetings or make any lengthy phone calls to obtain funding.
Our Simple Qualifying Criteria:
- Your business needs to be both registered and trading in the UK to qualify
- The business must be at least 6 months old
- Your monthly average card sales must total a minimum of £5,000
Providing Supporting Documentation
Once you’ve made an application online, you may be asked to provide some basic supporting documentation to evidence the information given in your application. Again, we like to keep things simple, so all that’s required of your business is:
- 4 months’ worth of card statements
- 3 months’ worth of business bank statements
Excluded Business Types:
- Chemical manufacture
- Banking and money transfer services
Merchant Cash Advance FAQs Frequently Asked Questions
If you still have unanswered questions about the merchant cash advance, then make sure to checkout our FAQs below for more information.
What is a merchant cash advance?
A merchant cash advance is where a lender injects funds into a business in return for an agreed percentage of the business’ future sales. A small percentage of future card transactions are transferred directly to the lender until the loan and single all-inclusive fee are repaid. A merchant cash advance is in sync with your cash flow and means you’re always paying back money. There is no interest accrued on a merchant cash advance.
How can I get merchant cash advance?
You can get a merchant cash advance as long as your business takes regular card payments in order to repay the amount borrowed. Next, you can apply online by completing an online application form where you will have to provide some basic details about your business. In addition, you will be required to submit personal information and contact details in order to qualify and be contacted by an account manager.
If successful, an account manager will be in touch to discuss your loan application and what type of loan is available to you.
Why choose SME Loans for a merchant cash advance?
Here at SME Loans we understand that a business loan isn’t for everyone. That’s why we work with regulated UK lenders who are able to offer merchant cash advances at competitive rates. Our online application can be completed in minutes and there are no fees involved when you apply.
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