Merchant Finance

What is A Cash Advance?

Unlike standard loans, merchant cash advances have no interest rates or fixed monthly payments. Instead, repayments are automatically deducted from your business’s future credit/debit card transactions, aligning repayments with the natural fluctuations in your cash flow.

This flexibility means that during quieter periods, you repay less, providing valuable support when cash flow varies. This option proved especially helpful to UK businesses during the COVID-19 pandemic, as owners could navigate uncertain trading periods without worrying about rigid repayment schedules.

Merchant cash advances offer immediate access to funds, acting as a quick loan without long processing times. They are ideal for small businesses, as this type of unsecured finance requires no collateral, allowing approval often within 24 hours.

How Does It Work?

A cash advance works through a process known as a merchant cash advance (MCA). Here's how it typically operates:

Application and Approval: Businesses apply for merchant finance by providing details about their monthly credit card sales. The approval process is usually faster than traditional loans, with decisions being made in days or even hours.

Advance and Agreement: Once approved, the business receives a lump sum of money, which is considered an advance on their future sales. The terms of repayment, including the factor rate and the percentage of sales to be deducted, are clearly outlined in the agreement.

Repayment Process: Repayment is done automatically by deducting a fixed percentage of the business's daily credit card transactions until the advance is paid off. This means repayments are flexible and dependent on sales volume; on slower days, the repayment amount is lower, and on busier days, it's higher.

Cost of Financing: The cost of merchant finance is typically higher than traditional loans due to the factor rate, which is a multiplier applied to the amount borrowed. This rate determines the total repayment amount.

What Are The Benefits?

Cash advances offer several advantages, particularly for businesses that rely heavily on credit card sales. Here are some key benefits:

Quick Access to Capital: Unlike traditional loans, merchant finance can provide businesses with fast access to funds, often within a few days, which is crucial for addressing urgent financial needs.

Flexible Repayment Terms: Since repayments are based on sales, businesses don't have to worry about fixed monthly payments. This flexibility can ease cash flow management, especially during low-sales periods.

No Collateral Required: Merchant finance doesn't typically require physical collateral, making it accessible to businesses that may not have substantial assets to secure a loan.

Less Stringent Credit Requirements: Businesses with less-than-perfect credit can still qualify for merchant finance, as the lender is more focused on sales history rather than credit scores.

Supports Business Growth: With the additional capital, businesses can invest in inventory, marketing, or improvements that can drive growth.

Why Choose Us?

Experience

We have been trading for over 18 years, you are in experienced, professional hands.

We have handled transactions from as little as £25,000 through to £60,000,000 with more than £3 billion funded across UK SME's to date

Leaders

We are leaders in the commercial finance broker field within the UK.

Our Founder and Chair was the Chair of our National Trade Body for over 10 years, he knows what good looks like and leads from the front when it comes to all aspects of commercial finance.

Expert Guidance

Our expert guidance puts you and your business at the centre of what we do.

With our gold standard, “hand-held, and cradle to grave” service, you’ll be looked after right through from the initial inquiry until your funds are released.

Business Owners

We understand the struggles and priorities of running a business, we are business owners ourselves.

Why not let us deal with the paperwork and sourcing finance while you deal with your day-to-day operations?

Goodman Corporate Finance is a trading style of Goodman Corporate Consultancy Ltd. Company no 5364029.

Goodman Corporate Finance is an independent commercial finance brokerage and not a lender. We may receive payment from the finance provider should you decide to enter into an agreement with them. Goodman Corporate Consultancy Ltd is Authorised and Regulated by the Financial Conduct Authority under number 733340. Goodman Corporate Finance is registered with the ICO no. Z1828753.

Cash Advance Solutions