Meet PDQ
Funding.

The amount you can borrow is dependent upon your monthly card takings turnover, this is taken as an average over the last six months. The greater the sales turnover that goes through your card machine, the larger amount you can get advanced. If your business has a monthly average of £10,000 in sales via your PDQ Machine per month. The amount of funding you qualify for would be the same amount. Subject to underwriting the funding you could receive via a merchant cash advance could be up to 150% of your monthly card turnover meaning you could receive a larger sum. Credit levels that are available to your business via a lump sum are generally between £5,000 and £200,000. It has been known to support businesses with greater amounts.

Merchant cash advances are a short-term funding product meaning the term of the loan has a maximum of 18 months. The repayment time is dependent on your business performance from your credit card payments or debit card payments. This is great is sales are slow, meaning you pay back less, when sales are good the amount is paid back faster. Typical periods to make repayments are 6 to 8 months. As it is classed as flexible finance repayments can be as short as 4 months and stretch to a maximum of 18 months. Subject to affordability and the companies repayment history you will be offered an option to top-up your funding. This will allow you to increase the borrowing and extend the current term.

Your business needs to meet certain criteria to qualify for funding. It has to be a limited company, partnership or sole trader with a registered office based in Scotland, England and Wales. Customers must pay via a PDQ machine or online sales through an ecommerce merchant gateway provider. There is a number of industry types & trades that qualify for a business cash advance. The following examples is not a comprehensive list. Don’t panic if your business type is not shown: hospitality and retail, shops, restaurants, hotels, coffee shops, cafes, MOT service stations and garages. The all receive payments from their customers via card payments. Your business needs to have been trading for a period of six months and turning over at least £5,000 in card sales a month.

Costs of a merchant cash advance are based on our pricing structure, this is based on a number of factors, each business is unique and so are our quotations. Commercial finance is based on a straightforward calculation of a number of factors. The cost to your business is calculated on something that is called a factor rate, this gives you a total repayment figure. When you make a sale and your customer pays by card a percentage of that sale goes to make the repayment of the loan amount until it is paid off in full. It is one simple payment there are no other charges or costs associated with this type of borrowing. To establish a costing the lender gives you a factor rate based on your monthly card turnover . This will dictate the risk, and gives the percentage of each sale that is required to repay back to the lender.

The monthly repayments are not fixed! This is not classed the same was as a business loan, there is no APR or fixed term. As it is based on your card payments within your business, there is no set repayment term. A small repayment is taken on each transaction until the advance is repaid in full. This type of finance works well with businesses that have seasonally adjusted sales.

No soft credit checks are carried out during the application process. Once you have been approved for finance, lenders will make a hard credit search against your company, this is carried out by a credit reporting bureau. Warning late payment and missed payments may affect your credit score causing make money problems.

E commerce businesses work in the same way as if you are a bricks and mortar type of business who use standard PDQ merchant terminals. If your Ecommerce business uses an online payment processer such as Stripe, Worldpay Online, Shopify Payments, Paypal Online payments, SagePay, Amazon Pay, Payoneer, Klarna, Adyen, 2Checkout or any other online payment gateway, merchant cash advance lenders UK will be happy to work with you.

Factor rate’s are used by lenders to determine the total repayment value of the borrowing. A factor rate is a calculation whereby the amount of funding required is simply multiplied by the factor rate figure (The common percentage used is between 1.1 and 1.5). Using the following example, let’s say your business borrows £5,000 based on your monthly sales volume, and a factor rate at 1.25 is set by the lender. This amounts to the following : cost of finance : £5,000 x 1.25 = £6250. Lenders set the factor rate on a number of set performers such as your business trading performance, what is the escort you are training in and other risk elements associated with the business. Our expertise within the finance world allows us to ensure you get you get competitive factor rates, this allows you access to some of the best rates on the market.

The amount which you are required to pay back is set when you take out the cash advanced sum. The length of time that it takes you to repay off the total amount is depend on the value of the card transactions that you take from your customers. Our experience has shown many businesses find that once they have spent the business cash advance on the items or services they need to build their businesses, they have seen a sharp increase in the value of their sales. Due to the growth of their business and increased sales receipts it enables them to repay the outstanding amount they owe earlier than planned. Should you decide on a PDQ Funding advance, an application to refinance the original amount or more once 60% of the original advance has been settled.

Although fees can be slightly higher than traditional business finance from a bank, merchant cash advances can deliver a number of benefits for your business. This type of funding allows access to business finance in a shorter time than a high street bank, decision in principle for approval can be made in within just 24 hours. Application processes are quick and simple with a minimal paperwork required. This is due to the lender requesting all the information requested from your merchant provider.

Merchant cash advances technically are not a loan, it is an advance based upon the future revenues of credit & debt card sales. In short you are selling future revenue to a lender, these are then purchased at a discount.

Rates on this type of lending are competitive, it also offers more flexibility compared to high street providers. Businesses must has a steady stream of credit card payments, monthly minimum of £5,000. SME owners considering this option should make sure he or she understands the terms being offered so they can make an informed decision about potential ROI.

A business cash advance is not currently authorised and regulated by the FCA (Financial Conduct Authority) in the UK. This allows the product to be fast & flexible. Lenders will offer funding products that, they will advise if the product is FCA regulated in the United Kingdom.

A merchant cash advance calculator allow you to calculate the merchant cash advance repayments based on your required loan amount, card turnover and your chosen factor rate, you can do this with our easy to use calculator.