How Can Loanable help me with Merchant Cash Advance?
A Merchant Cash Advance or Business Cash Advance, is an unsecured cash advance, that is a short-term loan based on a company’s future credit and debit card sales.
Many businesses accept credit and debit cards for payments, for example payments made with Visa, either debit or credit cards, makes up a third of all sales in the UK.
If a company takes debit and credit cards for sales, this can be a good way to get some cash upfront on these sales.
Merchant Cash Advances are a very flexible form of getting cash for your company. The amount of the advance is based on your existing sales and business performance.
If your business processes card payments through a card machine or have a merchant gateway facility, this may be a good way to get cash quickly.
You can borrow money against your future card sales and transactions.
The cash advance works like this: your company is given a cash advance against your future card transactions. Then a percentage of those future card transactions is deducted from each transaction until the amount advanced is repaid.
This can be 10% to 15% of each transaction.
In busier months where sales are higher, you’ll pay the advance back at a quicker rate.
If your business is slow, or it is your slow season, it will take more time to repay the advance. However, the repayment works with your cash flow.
One of the best aspects of this form of business financing is that it doesn’t stress the businesses finances, you pay back the advance at a rate you can afford. It also does not tie up a business assets in securing a loan.
Merchant Cash Advances are an excellent way for retailers, and those in the hospitality industry, and any business that accepts card payments to access quick cash.
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The benefits of Merchant Cash Advance
- It works with your current cash flow
- You are only borrowing against future card sales
- You do not need a business plan
- No fixed terms
- Quick approval and cash to your business
- Can work with your existing card machine
- Good for pubs and restaurants to expand and grow