Business / Merchant Cash Advance : Funding from your card machine
The simple way to secure a Merchant Cash Advance for your business - that your customers repay for you
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Cash advances
- Cash advance - equivalent to your monthly turnover
- No repayment schedule
- No interest charges
- Repayments made when your card facility is used
Simple to arrange
- Ideal for retail and hospitality sectors
- Adverse Credit – no problem
- Arrangements tailored to your business
- Easy and fast to arrange
Supporting growth
- Funds for any legal purpose
- Repayments keep pace with business
- No impact on other credit arrangements
- Supports growth
Does your business take credit card payments? They can bring you funding with Merchant Cash Advance.
Merchant Cash Advance - also known as Business Cash Advance - can provide a simple way to deal with short-term and seasonal cash issues – or to fund your business growth plans.
Merchant Cash Advance, or Business Cash Advance (MCA/BCA), can provide cash advances which are typically equivalent to your monthly takings.
The advance is then paid back automatically as your customers make card payments. With many conventional lenders still reluctant to lend, it can provide a simple way for businesses, and especially those in the retail sector, to raise the funds they need.
The advantages
An MCA or BCA can bring you the funds you need fast, often in just days. Then it makes repayment automatically, with a set percentage of every credit card payment you take going straight to the lender.
It means your customers repay your cash advance for you.
How it works
The lender will work with your payment processing company, who gives them access to your recent transactions.
You request a cash advance up to your monthly card takings, which you can use any way you wish.
The lender then takes a set percentage of every card transaction your business takes until your cash advance and their fee are paid off.
How much can you borrow?
Most lenders will advance a maximum of one month’s takings. They may look at an average of 3 months trading to get a representative figure.
Can you get a Business Cash Advance?
Technically an MCA/BCA is not a loan because it provides the money as an advance on your projected takings. This may mean that even businesses with an impaired credit rating may be able to use them to raise the cash they need.
It is also very simple to arrange. Because you already have a business arrangement with your card service provider, there should be no need for the usual checks and underwriting that are required if you apply for a loan.
If you use a card terminal - a PDQ machine - you can apply. Because the lender can see what the business makes over an average month they can agree a loan amount and repayment rate fast. You can get cash in days, making it a great option if you don’t have assets, or need finance fast.
How Rangewell can help you
There are a growing number of lenders providing Business Cash Advance arrangements. Finding the most competitive deal for your business means finding the right lender.
At Rangewell, we can help. We know the lenders who can offer the most competitive rates for all types of finance - including BCA/MCA.
REAL EXAMPLES OF WHAT WE CAN DO
Find the most competitive lender for a pub wanting to raise cash to refurbish
Helped a seaside fish and chip restaurant raise cash to help them through the slow season
Source an arrangement to help an independent bookshop to set up a coffee area for customers
Find the most competitive deal for a petrol station to fund a new retail area
Call us
Coming to Rangewell means getting an expert finance team working with your interests in mind.
We can explain the details, help you find the most appropriate lender, and help you secure the most competitive rate.
What business owners say about Merchant Cash Advances..
Helping you build your profits
Fast - the cash you want in days
Applications are easy, there’s no need for extra security – get the cash you want in days, and use it for any business purpose.Flexible - money for any purpose
Buy stock, fund growth, even help buy premises – or deal with temporary cash flow issues.Automatic repayment - from your card takings
Repayment is automatic and the more business you do, the faster your advance is paid off.No security required
Because there is no need for extra security it is much easier to set up than a traditional bank loan or overdraft.No repayment schedule commitment
Your repayments keep pace with your business. No penalties if business is slow and repayment takes longer than anticipated.Poor credit history?
Business cash advance is not a loan – it is an advance on future earnings. Even businesses with poor credit rating may be able to use it to raise cash.Download Rangewell’s free and detailed guide to Merchant Cash Advances
What are cash advances?
What do your card sales have to do with business financing?
Is Merchant Cash Advance a business loan to help with cash flow?
Does Merchant Cash Advance only consider debit card sales or credit cards also?
How do future card payments repay the agreement?
What kinds of small businesses are best suited to this type of business funding?
Do you have a monthly repayment schedule with MCA?
Does it take all card transactions into account?
Is MCA classed as a short term form of finance?
What do other business owners say about Merchant Cash Advance?
How do lenders calaulate the loan using transactions for an average month?
What is the average interest rate?
Why do lenders refer to it as 'future credit'?
Do I have to have a business card to apply for Merchant Cash Advance?
Is a Business Cash Advance the same business finance product?
What does the monthly repayment scheme look like?
Are there any similar products for businesses without a card machine or those who don't accept credit and debit card payments?
What percentage of the business card payments will be intercepted?
Will my credit scoring affect my monthly card repayments?
There’s a limit on advances
The amount you can borrow is based on your monthly turnover. If you take £5,000 a month, that’s probably the maximum advance you can have.You need to be a card based business
Business Cash Advance works best if your takings are mainly through your card terminal. Other solutions may be better if you take cash or send invoices.You may need to switch terminals
Not all providers work with all lenders. You may need to switch terminal providers - we can advise on the options.Our service is...
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