Merchant Cash Advance
What is it?
If your business is paid via card machines, a merchant cash advance could be a great way advance funds into your business. A merchant Cash Advance advances money against cash taken via card. These amounts are typically held by card
Who's it for?
Shops, cafés, bars and restaurants are a great use case for merchant cash advance facilities. In fact any business that gets the majority of their revenue through card payments can access flexible funding quickly with MCA. Previously high street retail companies could struggle accessing flexible capital but with a range of alternative finance companies out there the options have never been better.
How does it work?
The Merchant Cash Advance lender will look at your previous card sales and offer you a lump sum advance based on them, generally at the average value of a month’s card sales. You’ll then have to pay an agreed percentage of your card sales every month until you’ve repaid the initial amount, plus any additional fees and interest accrued.