What is a Merchant Cash Advance?
To put it plainly, a merchant cash advance is where a funder purchases the future card takings of your business and advances you from 100% – 300% of your average monthly card takings.
The funder will then agree a % split of future card takings, adding a fixed cost of finance, that will never change throughout the agreement.
This is then paid back from the % of card takings calculated over a set period. However, if the business has a sudden downturn, then there are no penalties. On the flip side of that, as business increases, you pay back the advance back quicker.
This is seen as a great unsecured short-term funding for high transaction and seasonal businesses. It helps keep your repayment’s inline with your business cashflow.
The Funding Store is your home for finding and selecting competitive business finance for your business. Our team work with a wide panel of reputable lenders offering various finance solutions and we can help source a finance solution that meets your needs.