A merchant cash advance is a loan from a lender that a business repays as and when the business makes credit or debit card sales. The loan amount is agreed based on monthly card transactions that a business is turning over.
A merchant cash advance is unsecured which means you do not need to secure a personal or business asset such as a property against the loan value.
There are no default penalties which you may find with other types of commercial funding. Unlike other types of business finance a merchant cash advance works in line with your cashflow.
An percentage on each transaction is firstly agreed which the business is comfortable with paying. If your business has a slow month on sales then you only pay back the agreed percentage in line with those lower sales.
If your business has a bigger month on debit and credit card sales then your business will pay back the loan quicker.
This makes a merchant cash advance a truly flexible cashflow loan which doesn’t put the business under pressure to make consistent fixed monthly payments.
What is a merchant cash advance and what are the costs?
Unlike other forms of business finance there is no APR, no extra charges or hidden fees. It’s a straightforward business finance loan that helps your business grow.
It can be used for any purpose. Whether you need an immediate cash flow injection, funding for expansion, development finance, property purchases, taking on more staff, vehicles, marketing, business equipment and more we can help with the Capalona merchant cash advance.
At Capalona we have helped many small businesses find the finance they need. Whether they are in the hospitality sector, retail sector, health and beauty sector, MOT tyres and more. In fact any business who operate a merchant gateway such as a merchant PDQ terminal which processes more than £2,500 per month in sales via credit card sales could qualify.
Easy application for a no obligation quote. Apply today and you’ll receive a quote from our team. A great way to compare the cost and flexibility options to any other traditional lines of business finance. We’re a friendly team of experts and are happy to explain the process and the merchant cash advance product in more detail.