Cash Advance Loan

Merchant Cash Advance Loan

Merchant Cash Advance is a flexible loan facility which is given against the card machine transactions. This facility also known as Business cash Advance or PDQ loan. Under this facility SME customer can quickly and easily borrow cash to assist cashflow for their business.

In Business Cash Advance, the total cost of finance is agreed upfront which is fixed. Repayments are taken from the everyday card machine transactions. Each time a business processes a sale through the card terminal, a pre-agreed percentage of the revenue from the sale will be deducted to repay the loan. When the transaction is higher you pay more and when transaction is lower you pay less. But the total repayment amount will not change.

Merchant cash advance loans are especiallysuitable for all Retail businesses including hospitality and leisure sectors.

Use of Merchant Cash Advance Loan:

You can use the Merchant Cash Advance Loan in a variety of purposes, such as:
Pay employees, suppliers and other creditors
Purchase equipment and vehicles
Expand your business
Invest in advertising
Buy stocks

Type of businesses can apply Cash Advance Loan:

A Merchant Cash Advance can benefit all kinds of businesses, including:
Beauty salons
Ecommerce stores

Amount you can Borrow:

You can get Business Cash Advances of up to 175% of your monthly card takings, from £3,000 up to £2m.

Interest rates on the Cash Advance Loan:

One of the benefits of the Cash Advance Loan is that you don’t pay interest or APR. The amount you owe is based on a factor, which usually ranges from 1.2 to 1.5 of the original advances. The amount you have to repay is fixed at the beginning

Repayment of the Cash Advance Loan:

Cash Advance Loanis pay back through a percentage of your daily card sales.You’ll repay a small, pre-agreed proportion of your card sales. This means the amount you’ll have to pay varies depending on how much you are transacting. If a month you transact less, you’ll repay less.

which does not increase or decrease even the repayment period becomes faster or longer.

Duration of the Cash Advance Loan:

As you pay back a pre-agreed proportion of your card sales, the time it takes for you to repay depends on the value of your monthly card sales. if the daily card sales high, you will pay back faster and if the daily card sales is low, you pay back longer.

Benefit of the Cash Advance Loan:

The key benefits of getting a Merchant Cash Advance for your business include:
Flexible payment methods: you ‘pay as you grow’ meaning that you pay back what you can afford based on your card sales. If the card transaction is high, you pay more and if it low you pay less.
No need for security: Unlike a business loan, a Merchant Cash Advance, you can get the cash loan without the need to put up any security. If you have a poor credit history or minimal assets, still you can get the loan.
It’s quick – you can get the fund as quickly and easily as within 24 hours of being approved.
No monthly instalment for repayment: You won’t need to worry about upcoming payments, as the repayment will go from your daily card machine transactions. You’ll also never miss a payment in this way.
No hidden charges:The total amount you need to pay is set at the beginning which does not go up or down. You will know exactly what you will pay. So, there is no hidden charges or fees.

Duration of the trading:

To qualify for a Merchant Cash Advance, you will need to have been trading for at least four months.

Bad credit score:

Still, you can get the loan.To assesses your eligibility, the lender mostly looks at your monthly card transaction rather than your credit score.

Meaning of ‘Factor Rate’:

This is the multiplier to determine how much total you need to pay back of your merchant loan. For example, if your factor rate is 1.4 on funding of £10,000 over twelve months, you’ll pay back £14,000. It is a fixed price and does not fluctuate like interest rates.

Application Process:

Application process is very easy and simple. You just give us a call or send us your contact details, one of our experienced advisors will contact with you within 24 hours. He will patiently talk to you and understand your situation and ask to provide further information and documents.

We will then contact with our lists of lenders and find the best deal for you.

Our services are completely FREE of charge, we get a small percentage of commission from the lenders.

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