Business Cash Advance

A business cash advance (commonly known as a Merchant Cash Advance) is a business loan that is calculated on the turnover of credit or debit card sales that a business makes.


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A business cash advance (commonly known as a Merchant Cash Advance) is a business loan that is calculated on the turnover of credit or debit card sales that a business makes. The advance is repaid as and when the business makes credit or debit card sales via their merchant PDQ facility.

What makes a business cash advance so unique?

Unlike many other forms of commercial finance a business cash advance works in line with your cash flow meaning you repay in line with your sales. From the outset once you have had an offer which is usually a loan value similar or equal to your card sales monthly turnover you agree on a percentage repayment structure that is comfortable for your business.

This is a percentage of each credit or debit card sale as your business makes them. So, if your business has a quiet month on sales then you will be paying back a percentage of those sales made – inline with your cash flow. And, of course, if you have a bigger month on sales then you’d be paying off the loan value quicker. The payments are transferred to the lender via your merchant facility as the sale is processed.

So as you can see this type of commercial business finance is highly flexible and doesn’t put your business under pressure to repay a fixed value each month unlike other forms of business borrowing.

The product is also classed as unsecured. This means that there is no requirement to secure the loan value against a personal or business asset.

It is transparent too in that there is no APR unlike other forms of finance usually associated with high street bank lending. There are no hidden fees or early or late repayment charges. It is one of the most if not the most flexible forms of business funding options available on the market.

The business cash advance payment schedule

Unlike other regular forms of business finance, the payments for a cash advance will vary each day depending on how much your business has made on that day through credit and debit card sales. When you discuss payment terms with the sales team they will be able to give you a schedule and a payment plan that sits comfortably for your business.

What types of businesses benefit and qualify?

Wherever a business makes sales via a PDQ merchant terminal and takes credit and debit card sales. On the whole, we see many businesses in the hospitality sector using the service. Restaurants, Cafe’s, Pubs, Hotels and so on all fit the criteria because they frequently process card sales. Other businesses such as shops, MOT tyre centres and other retailers also have a good fit. if you are unsure just use our service to enquire. We have seen some interesting businesses also receive funding via a business cash advance!

What makes the application of a business cash advance any different?

You may have already gone through other business funding options and found that they all offer pretty much the same thing. A monthly repayment schedule that could put your business under undeserved financial stress. You may also have found that the application processes is lengthy

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