Merchant Cash Advance

Asset finance typically spans between one and seven years, allowing businesses to spread the cost of an asset while making manageable repayments at an agreed interest rate. For higher-value assets, financing terms can extend beyond seven years.

The duration of an asset finance agreement is flexible, depending on factors such as the asset’s lifespan, the business’s repayment preferences, and the lender’s terms. 

This flexibility ensures businesses can choose a repayment period that aligns with their financial strategy and operational needs.

Typically, Merchant Cash Advances range from £2,500 to £300,000. The amount your business can borrow depends on your average monthly card turnover. The higher your sales, the larger the cash advance you may be eligible for.

A merchant cash advance offers several advantages to UK SMEs, making it a popular choice for businesses needing quick and flexible funding. The benefits include:

• Flexible repayments based on future credit and debit card sales: Repayments are tied to your business's card sales, so you only pay when you process customer payments. This means you keep 100% of your cash sales.
• Receive fast access to cash: Merchant cash advance lenders can quickly assess your monthly card turnover and provide you with funding within days, making it ideal for urgent cash flow needs.
• No interest charged on the money borrowed: The cost of borrowing is clear upfront with an agreed-upon factor rate, so there are no APRs, hidden fees, or extra charges.
• All business credit scores are considered: Approval isn't based solely on your credit score. As funding is secured against your business's performance, businesses with less-than-perfect credit may still qualify.
• Less risk of defaulting on repayments: Repayments are automatically deducted from your card sales, so there’s no risk of missed payments or penalty charges.
• Business assets are protected: Because it’s unsecured funding, you don’t need to provide business assets as collateral.
• No business plan required: Lenders use your merchant account statements to assess your business, so no business plan is needed.
• Less paperwork and hassle: Some lenders can access your merchant account statements directly, speeding up the process and reducing administrative burdens.
• Works in line with your cash flow: Repayments adjust to your sales, so in slower months, you repay less, helping to reduce financial pressure.
• Borrow £2,500 to £300,000: Your borrowing limit is based on your monthly card turnover, with some businesses qualifying for as much as 150% of their monthly card sales.