Merchant Cash Advance
Advantages
No fixed payments
Pay a percentage of your card takings
Very quick and easy to obtain
No need to use your property as collateral
Can be renewed once the full amount has been repayed
Things to Consider
Tends to be a shorter term, usually repaid within a year
In order to be accepted, a significant perfecntage of the business’ turnover must be via card terminal or online payments
How do I obtain a Merchant Cash Advance and how long does it take?
Griffiths Commercial Finance work with many MCA lenders, giving you the best chance of obtaining the right funding for your business. Applying through GCF is quick and easy, the first stage is to click the apply button on our website and follow the option for a Merchant Cash Advance. You will then be required to send over a few documents, at which stage the lender will underwrite the application, typically within a day or two, and provide the terms of their offer upon approval. From this stage, funding can be obtained within a couple of days. It has been known to be within 24 hours.
How does it work and how much will it cost?
The lender simply takes a set percentage of your daily card takings, for example 10%, until the facility is repaid in full. Therefore if the total amount repayable is for example £20,000, and the lender is taking 10% of each transaction, the facility would be repaid once the company has turned over £200,000 via card payments. Rates can vary massively depending on factors such as turnover or the length of time the company has been trading. Once you have filled in an application form we will be able to provide you a rough idea of the rates of suitable lenders.
What are my other options?
If you are not sure that a Merchant Cash Advance is right for your business, there are many other options, such as as Unsecured Business Loan, or a Revolving Credit Facility. You can find the links for those in the footer below, or if you require further advice, feel free to contact us via email: info@griffithscf.co.uk