Merchant Finance

Merchant cash advance is best suited to:

• Retail, hospitality, and leisure businesses with consistent, high-volume card sales
• Businesses that need relatively quick access to a defined amount of capital
• Situations where the flexible repayment structure is genuinely valuable for example, a seasonal business where repayments that reduce in the off-season are more manageable than fixed monthly payments

Merchant cash advance is one of the highest-cost forms of SME finance available. The effective annual percentage rate, when calculated properly, is frequently significantly higher than the headline factor rate suggests.

It is also one of the products most associated with commission-driven brokerage. The fees available to brokers from MCA providers can be substantial which creates an obvious incentive problem when a broker is deciding whether this product suits a client.

We see businesses regularly in this position: they needed working capital, they were directed into a merchant cash advance, and they are now paying a cost of capital that is significantly higher than what the market would otherwise have offered for their situation. In some cases we can refinance them out of it. In others, the best we can do is explain how to manage the exit.

If you have been offered a merchant cash advance, or you are already in one and want to understand your options, we are happy to give you an honest view.

We will assess whether merchant finance is genuinely appropriate for your business before recommending it. In many cases, invoice finance, a revolving credit facility, or a term loan will be a better fit at a lower cost. We will tell you that if it is true.

Where merchant finance is the right answer, we work with a panel of providers and will structure the facility appropriately for your trading profile.

All commissions are disclosed before you commit to anything.