Merchant Cash Advance
A Merchant Cash Advance is an innovative alternative to a traditional business loan. The concept has only existed for a few years but is already a leading finance solution for UK business.
Any business that receives payment via a card terminal can qualify for a Merchant Cash Advance (MCA). An MCA works by taking an affordable, agreed-upon percentage of your daily card takings. The repayment of the loan is paid directly through your card terminal provider, offering a convenient method of repayment. You repay at the pace of your business, so the payments will fluctuate directly in proportion to your daily card sales.
The lender works directly with the terminal provider, which allows them to have a quick understanding of your business, simplifying and speeding up the loan application which can be processed the same day. Unlike other types of lending, there’s no need for credit checks, review of your accounts or security.
This type of loan is an ideal solution for businesses with limited assets, but a good volume of card transactions every month.