Established in 2014, Merchant Loan Advance is one of the UK’s leading online broker specialising solely in the merchant cash advance sector. As a broker, they can help save you time and the hassle of approaching lots of individual providers for quotes. Their service is free so there’s no additional brokerage fees or hidden charges involved.
The Merchant Cash Advance sector has grown steadily over the last five years with more and more small businesses and SME’s using the loan product as an easy and straightforward way to raise unsecured commercial funding for their business needs.
A merchant cash advance is an unsecured loan product which means you are not expected to secure a personal or business asset such as a property to secure the funding. There are many positive differences with a cash advance to that of a typical commercial loan product. Many conventional business loans expect you to repay against an APR (Annual Percentage Rate) and pay a set figure at the end of each month to repay the loan.
The trouble with this model is that it can often put a business under financial strain especially when that business has had a quiet month on sales. A business cash advance works differently. It works with your credit and debit card cashflow only repaying when your business makes sales.
If your business takes credit and debit card payments from its customers you may qualify for this type of loan product. A cash advance only takes card sales into account for both for calculating the loan value and the method for repaying the loan back. You could qualify for up to 150% of your monthly card turnover as a cash advance injection into your business.
It works like this:
Once you request a free no obligation quotation the lending team will take a look at your monthly card transactions and turnover. They will agree with you the required funding amount and give you a one off fee on top of the loan amount which will be repayable as and when your business makes card sales. Your cash sales are separate and are not taken into account.
You will agree on a percentage of each card sale that your business is comfortable with to repay the advance. For example, your business makes £100 on a debit card sale, £90 is paid into your account and £10 is paid off your loan.
There are no hidden extra costs or fees of any kind. No early or late repayment charges, no APR and no fixed monthly requirement from you. The advantages of this type of repayment schedule are that it only repays when you make a sale and therefore runs in line with your cashflow.
When you have a low sales month then you’d be paying back less in that month. And, on the other hand, when you have a great month on sales you’d of paid off more from your advance. Once you have paid a certain percentage back you can discuss topping up, increasing and extending your loan term if required.
This type of funding is great for sectors such as leisure, hospitality, restaurants, pubs, cafes, hotels, bed and breakfast, health and beauty salons, MOT and Tyre centres, barber shops, dental surgeries, florists and more. In fact, it can be used by many businesses that take the card for their sales. Apply with Merchant Loan Advance to see if your business qualifies today.