With a merchant cash advance, you will recieve a lump sum of money, which you then repay to the lender using a percentage of its card transaction sales. Unlike an unsecured business loan, the repayments aren't fixed each month and will go inline with your card revenue.

For example, if you borrow £10,000 and the total amount repayable is £12,500 including fees, you will repay this using the agreed percentage of your card sales. If your agreed percentage is 10% and you take £1,000 in card revenue one day, you will pay back £100 towards your loan. If you take £800 the next day, you will pay back £80 towards your loan. This continues until the loan is repaid in full.

When you recieve a merchant cash advance offer from the lender, you will be told upfront what the total repayble amount is. You will then make the loan repayments via a percentage of your daily card takings. The percentage amount you repay will be agreed at the start of the loan, and will be reflective of your business history and card revenue.

Because the repayment is linked to your card takings, it's important to understand that you will pay back more when your revenue is higher and less when things are slow, but the total cost of the finance remains the same.

As the offer will be linked to your card revenue, the lender will need you to connect to open banking, or provide 3 months of business bank statements.  Through Same Day Business Loans, our panel of merchant cash advance lenders will turn round a decision within 1 working day and get the funds in your bank within 2 working days. It's that quick.