Momenta Finance

Looking to take out a business loan with Momenta Finance, previously known as Merchant Money? Get independent insight into this lender and the funding options it offers from our team of finance experts.

Momenta Finance, previously known as Merchant Money, is a financial lender offering business loans to limited companies and LLPs. With a range of loan products that include both secured and unsecured business loans as well as bridging loans and cash advances, the lender is a popular option in the UK and has supported over 2000 SMEs with finance. 

Loans are offered based on your business’s trading history, your personal circumstances and the details you include in your application. If you’ve been rejected by this lender, or received an offer that doesn’t meet your expectations, we can help.

Here at Rangewell, we support businesses in finding the right lender for your specific needs. We act as independent finance experts, helping you understand the benefits and drawbacks of each lender and the type of finance product that will most suit your goals. 

Read on to learn more about Momenta Finance and Merchant Money, or get in touch now to discuss your business and see how we can help you secure finance regardless of your credit history or profitability.

What is Momenta Finance? 

Merchant Money was originally launched in 2013, before rebranding to Momenta Finance in 2023. The lender is headquartered in London and finances businesses throughout the UK, including Scotland and Northern Ireland.

As an alternative finance provider, it offers a new route for SMEs who wish to source finance away from traditional banks. The lender is accredited by the government-owned British Business Bank and is registered with the Financial Conduct Authority (FCA). 

What types of loans does Momenta Finance offer?

Momenta Finance offers a wide variety of financing options for businesses. These include:

• Unsecured business loans of up to £250,000 for businesses that require general financing to help with growth, working capital, asset purchases and more. 
• Secured business loans of up to £750,000 where your security allows you to access higher credit limits and lowers the risk for the lender. Like with an unsecured business loan, this finance option is general in nature and can be used for a variety of growth-orientated needs. 
• Secured loans on tenanted properties, which are designed for landlords to utilise when purchasing further properties or to release equity. 
• Bridging loans, which offer rapid finance solutions for property projects that encounter finance gaps. 
• Business cash advance, which is also known as a merchant cash advance. This refers to a loan option based on your card machine, allowing businesses to spread out repayments as a percentage of each card transaction. 

If you’re confused about which option is right for your business, speak to Rangewell before you approach the lender. We can offer a no-obligation consultation to discuss which type of loan is suited to your business and your specific requirements for the funding. 

Are you eligible for a loan from Momenta Finance?

The eligibility criteria for Momenta Finance loans differs based on the loan option you choose. However, there are some standards shared across all products that your business must meet. These include:

• Be registered in the UK and generate the majority of your income in the UK. 
• Be a limited business or LLP
• Minimum of 2 years’ trading history
• No outstanding CCJs 

Both forms of secured and unsecured business loan require a minimum turnover of £350,000. Merchant cash advance products require a minimum of £10,000 through card terminals each month. However, Momenta Finance’s bridging loans don’t have minimum requirements. 

What information do you need to provide? 

To apply for a loan with Momenta Finance, you’ll need to provide some critical information about your business. What you need to provide will depend on the finance option you’re considering, but generally the information includes:

• 3 months of bank statements or consent to Open Banking to allow for digital access to key information
• Your latest set of filed accounts
• Management information including profit and loss statements and balance sheets, no older than 6 months. 
• For cash advances, Momenta requires 6 months of merchant statements

During your application, you may be asked for further information based on your specific circumstances, but this will be entirely based on your application. 

Does Momenta Finance offer secured or unsecured lending?

Momenta finance offers both secured and unsecured lending. Unsecured loans do not require security, though if you’re a limited company one director or shareholder must provide a personal guarantee. Secured loans are instead secured over the company or against a personal/commercial property. 

As a borrower, you need to consider what assets you own and what you’re willing to risk in terms of securities. It may be more beneficial to offer security and receive a better loan than to choose an unsecured loan – but understanding which is best for you is a case of assessing your own circumstances as well as your plans for the business. 

What are the rates and terms? 

As with most forms of business finance, the rates you are offered will depend on your application and the terms you select. A longer term loan tends to allow for a reduction in interest rate – though will lead to a higher cost over the lifetime of the loan. 

Momenta Finance’s business loans use a variable rate starting from SONIA (Sterling Overnight Index Average) + 7.5% p.a. The term lengths vary between 6 - 60 months, though there is no charge for early repayment. 

The Merchant Cash Advance product carries a rate which is agreed upon individually between the borrower and lender and is based on your business card transactions. 

Bridging loans can be taken out for up to 24 months and start at 1% per month, but the actual offered rate will depend on your business and circumstances. 

Want better rates or different terms? 

Interest rates and term length will heavily influence your business’s available cash flow. Securing a rate which is beneficial to your business is crucial to the loan being worthwhile – so don’t settle for an offer you don’t think will work for you. 

Here at Rangewell, we can help you renegotiate with Momenta Finance or an alternative lender to secure better rates or longer term lengths. Get in touch with our team to learn how. 

What are the fees and charges?

Secured and unsecured business loans carry an initial arrangement fee which must be paid upon commencement of the loan. This fee can be up to 3% of the agreed amount and will be outlined in your offer. 

Fees for specific products such as the Merchant Cash Advance are agreed upon during your negotiations, making it important that you understand your current cash position and how any fees will affect you. 

For business loans, there are no early settlement fees unless you settle before 12 months. 

How do I apply?

As with many independent lenders, Momenta Finance offers an online application form which makes applying simple. Provided you have gathered the required information ahead of the application, you should be able to apply online in little time. 

To do so, you’ll need to head to the lender’s website and click ‘Apply Now’ to get started. You’ll be asked to fill out some basic information about you and your company, then to upload the required documentation outlined in our Eligibility section. 

What if you are rejected by Momenta Finance? 

If you’ve been rejected, don’t be disheartened. There are other lenders who may be more suitabl for your requirements. Rangewell can help you identify why you may have been rejected and help you either apply with a new lender or to reposition your business in a way that better suits Momenta Finance’s requirements. 

Either way, you shouldn’t assume that being rejected by one lender means you can’t access finance. Speak to our team today and we’ll show you how you can raise finance with independent and mainstream lenders alike. 

What to do if your Momenta Finance loan is coming to an end

If you have an existing loan with Momenta Finance that is due to end soon, have you considered either refinancing into a new agreement or starting a new loan? 

In either case, speak to Rangewell before you take any further steps, and we’ll help you plan your future growth by discussing the end of your existing loan and then navigating through the lender’s market to find a more appropriate option. 

Need more funding? 

If you need more credit than is offered by Momenta Finance’s loan options, talk to our team. We work extensively throughout the lender’s market and can arrange for loans well into the millions of pounds for the right business. Whatever your credit needs, our team may be able to help you structure a plan and apply for finance to fund virtually any business requirement. 

So whether you want to apply with Momenta Finance or have already tried in the past, get in touch with Rangewell to see how we can help you get a better offer.