Merchant cash advances are designed to help businesses by providing money upfront and helping merchants stay on top of their cash flow. Merchants such as shopkeepers, bars, hotels and restaurants are custom to taking a lot of payments through credit card machines and card terminals (PDQ).
The delay in getting paid from card transactions creates an unhealthy cash flow, but this is where merchant cash advances come in. You can apply for £3,000 to £300,000 to help you stay on top of your cash flow and repayments are only taken when the card transactions are processed.
The fees charged are just a fixed percentage of your card earnings (around 10% to 20% depending on the lender) – so it is very accommodating for your busy times and quiet times and you are not stuck paying any extra high interest rates.
You have the flexibility to repay your merchant cash advance when you feel comfortable to do so, with companies paying each month and only using the service for around 6 to 12 months.