Could merchant card finance be an option for your business?

Merchant card finance (MCF) or a merchant cash advance is one of the most innovative funding solutions available for small businesses and SMEs in the UK. This finance option is relatively new and is designed to help businesses whose income fluctuates throughout the year.   It has become particularly popular with the leisure and hospitality industries, whose business can be seasonal.

As a business owner, have you considered merchant card finance? Could this funding option assist your business and improve cash flow flexibility?

What is merchant card finance or a merchant cash advance?

  • MCF is a type of business funding in which the customer is advanced a sum of money that is repaid through an agreed percentage of the daily card takings.
  • There are no fixed repayments, instead, a percentage of the daily card takings are taken until the loan is repaid in full – the more you make the more is taken so this is a great option for seasonal businesses – repayments are proportionate to card revenue.
  • A lot of the time, this repayment is taken automatically by the funder.

What kind of business does merchant card finance work for?

  • UK based businesses (sole trader, partnership or limited company)
  • Subject to different lenders criteria:
    • Over £5000 a month turnover
    • Take at least £3000 a month through card payments
    • Over 6 months trading activity
  • Business types that often use MCF include restaurants, garages, hairdressers/salons, shops, pubs and tattoo studios

Ten reasons your business should consider merchant card finance

  1. You can receive up to 110% of your monthly average card sales in a lump sum
  2. The advances can be between £2500 – £300,000
  3. Decisions within 24-72 hours with funding provided the same day
  4. The business only pays back 10-25% of card sales off every batch and repayments are only made as the business makes card sales
  5. Hassle free – 1 page application form, no PDQ switch, no business plans required
  6. Clear cost added at the start – no APR, no Interest Rates, no early or late fees
  7. PG will be required, but no collateral security
  8. Ideal for seasonal businesses
  9. Improves cash flow flexibility
  10. An innovative alternative to a traditional loan or funding facility

How can Business Finance Solutions (UK) Ltd help?

If you think that merchant card finance could help your cash flow and are interested in finding out more, please contact us to discuss your options.


Published 16 July 2020


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