Merchant Cash Advance – Standard

The standard MCA is to help with daily cashflow with flexible payments.

A merchant cash advance works by using your existing card payments system such as a chip and pin machine or online shops facility to advance a single payment of cash to your business. This is then repaid back using a small percentage of your future card sales.

The percentage that you are asked to repay is agreed upfront so you have clear visibility of the schedule. The monthly average merchant transactions turnover dictates the sum you will receive by way of the advance.

Service benefits

A fixed percentage is taken from every sale, meaning that the more transactions made the faster the advance is paid off. This rule also applies if the business has fewer transactions in a particularly slow term. The balance will still be getting paid but within less time. Meaning the business pays back the advance that is tailored directly to the business intake of merchant cash deposits.

How much can my business borrow?

The amount you can borrow is dependent upon your monthly card takings turnover, this is taken as an average over the last six months. The greater the sales turnover that goes through your card machine, the larger amount you can get advanced. Subject to underwriting the funding you could receive via a merchant cash advance could be up to 150% of your monthly card turnover meaning you could receive a larger sum.

How much does the Merchant Cash Advance cost?

The cost to your business is calculated on something that is called a factor rate, this gives you a total repayment figure. When you make a sale and your customer pays by card a percentage of that sale goes to make the repayment of the loan amount until it is paid off in full.

Are merchant cash advances right for my business?

Merchant Cash Advances can deliver a number of benefits for your business. This type of funding allows access to business finance in a shorter time than a high street bank, decision in principle for approval can be made in within just 24 hours. Application processes are quick and simple with a minimal paperwork required. This is due to the lender requesting all the information requested from your merchant provider.