Merchant Cash Advance

Access £5k to £200k from PDQ Funding in 24 hours

PDQ Funding are a leading UK based business funding provider that offer an alternative finance solution known as a merchant cash advance.

Your business can receive an instant cash injection of up-to £200,000, repayments are simply made by using a small percentage of your customer card sales.

Our business finance solutions are unsecured, meaning it is not stacked against any assets the company may have.

Merchant Cash Advance

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No security or business plans required
Approval within 24 hours. 90% approval rate
Apply for a merchant cash advance in minutes
Flexible repayments based on your card sales

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    3 steps to help with the growth of your venture

    An Alternative Funding Solution for SME’s in the UK

    Access £5,000 – £200,000 in 24 hours

    Apply in Minutes

    Use your future credit and debit card sales to raise a unsecured business loan, today.

    Get Your Funds in Days

    You’ll receive the lump sum directly into your bank account to use on any business requirement.

    Watch Your Business Grow

    You repay a small portion of your credit/debit card sales. Repayments are automatically processed and hassle-free.

    What is a Merchant Cash Advance?

    A merchant cash advance is an unsecured short term lending finance option, it uses a card payment terminal to secure future borrowing. This type of funding is already proving very popular with UK SMEs as its fast and flexible and allows growth without the needs for security or debenture from the company. Any type of company that uses a merchant gateway to receive payment via a PDQ machine can apply to get finance with us.

    The process will allow funding to be released against your future card sales. The amount of funds made available to you is mirrored with your average monthly card transactions. Repayments are set at a pre agreed percentage of each sale until the advance is paid off.

    Typical repayment timescales for merchant cash advances are anything from 6 to 9 months, but dependent on your businesses history it can be can be as long as 18 months term. Once a positive repayment history has been demonstrated, usually about half way though the repayment process, you can apply to gain new funding. This will allow the amount that is borrowed and allow an extension of the term.

    Unlike traditional bank funding options merchant cash advances have no interest rates set, just one simple repayment. One of the great aspects of this type of short term business funding option is there is no hidden fees, it is a perfect solution for businesses looking additional funding

    Our business funding is a perfect alternative to high street business loans, it allows business owners to expand payment terms, helps with cash flow and help to grow your business, these are just a few of the benefits with a cash advance.

    How does a Merchant Cash Advance Work?

    A merchant cash advance works by using your future customer card payments to advance a single payment of cash to your business. This is then repaid back using a small percentage of your future card sales.

    The percentage that you are asked to repay is agreed upfront so you have clear visibility of the schedule. A monthly merchant transactions turnover dictates the sum you will receive by way of the advance. As a minimum criteria should be constantly taking about £5,000 per month in card volumes to qualify in card revenue, you can find this on your merchant statements. If your business is achieving a good volume of credit card sales on a monthly basis, but has a cash flow need, our facility is a fantastic way of acquiring the extra funds your business to grow.

    It works through an agreement set by the provider and the business, once the agreement is set the outlay of the merchant cash advance. In it will be such as the payback, advance amount, and holdback percentage will be discussed and an agreement between both parties will be made.

    When the agreement is made, the advance is transferred to the business’ bank account in exchange for a future percentage of receivables or card receipts, these are your customer card transactions.

    After the agreement has been made you business agreed on the percentage of revenue through credit card purchases are withheld according to agreed the percentage. The withheld percentage will pay back the sum that was initially borrowed. This practice will continue until the advance has been paid. Access to a business owner’s merchant account eliminates the collateral required for a traditional small business loan.

    A fixed percentage is taken from every sale, meaning that the more payments made (transactions) the faster the advance is paid off. This rule also applies if the business has fewer transactions in a particularly slow term. The balance will still be getting paid but within less time. Meaning the business pays back the advance that is tailored directly to the business intake of merchant cash deposits

    Here’s an example of a typical repayment:

    In this example a small retail outlet processes £10,000 per month via their card terminal, this allows an advance of £10,000 to the retailer. The owner of the business pre agreed that 10% of their business card sales will be used towards the rsettlement of the loan with the merchant cash advance lender at the start of the arrangement.

    The independent retail business turns over £10,000 on average every month in card sales, the owner is expected to repay £1,000 (10%) every month until the loan is fully repaid.

    As there is no there is no set repayment term, it is predicted the business will repay the total advance amount of £12,000 in approximately twelve months. The payback period is flexible and may be shorter or longer, depending on sales. Remember, you only pay back when you sell to customers. Average repayment times are 4 months – 6 months as there are not a fixed repayment schedule.

    You might look at these figures and think “I’ll be paying 10% interest”, but that’s not the case. With a merchant cash advance, repayments are taken from your revenue — so the 10% figure doesn’t refer to interest, but rather the proportion of your revenue that will go towards paying back £12,000.

    The most important thing to understand it is done on a proportional basis. An advantage to this is repayments are mirrored in line with your sales, and the payback period is dependent on your sales cycle. The great benefit is that the total cost of finance doesn’t change. Meaning you will repay £12,000 without any compounding interest.

    This method of repayment means that merchant cash advances are more flexible than bank loans, because instead of a fixed monthly repayment that has to be met regardless of your sales, the amount you repay goes up and down each month in line with your sales.Merchant-cash-advance-repayment

    Business Cash Advance Advantages

    Every venture needs capital from time to time but a bank loan isn’t always accessible. A Business Cash Advance offers a very different way of receiving a financial boost but without so many restrictions on the repayments. This type of additional funding allows a merchant cash advance company rights to claim a proportion of your future sales in return for advancing an agreed and set amount of cash upfront. Working close with your merchant gateway and card terminal provider, the business cash advance direct lender will receive an agreed proportion of future transactions until the cash advance is paid off.

    This amount is set and agreed is usually round 10% per transaction, this is deducted from future card sales, and goes towards paying back the loan. Every time a sale is made and processed via your PDQ Card machine, if the sale has a value of £100.00, the revenue you will receive is £90.00. The remaining amount of £10.00 will then go to the merchant cash advanced lender to make repayment towards the advance.

    The main advantage with this type of borrowing is that there is no credit checks, so this type of borrowing can be very quick to arrange. Most lenders can arrange for funding to be in place within 48 hours. The funds will arrive in your companies account soon after. Probably the best advantage is due to your sales determining the amount you can borrow there is no need to give personal guarantees or any other kind of security

    Some of the features and benefits of a business cash advance.

      Alternative business funding product

     Advance amounts up to £200,000

     Companies with bad credit welcome to apply

    Fixed monthly payments and no APR

    Security is not required

    Credit and debit card sales used to raise funding

    Application process is quick

    Cash availible to draw down in days

    Repayments are made via a small percentage of your monthly credit/debit card transactions

    Ideal funding solution for small to medium-sized ventures

    Approval rate for applications is about 90%

    We offer an alternative cash flow finance to UK based businesses, this product is known as a business cash advanced. Our advance of future revenues allows access to funding of up to £200,000 with repayments that are manageable. We believe our service offers UK business an alternative to bank loans and is designed for small businesses without the need of a business plan.

    Cash advance loan amounts are based on the amount of income you make from credit and debit cards and the repayments are linked to this amount as well.

    Qualifying Criteria for a Merchant Loan Advance

    Qualifying criteria for a merchant loan advance is far more relaxed than traditional finance. The exact eligibility requirements will vary between lenders but as a general rule of thumb for UK businesses, you need take use a card terminal to take payments and meet the following criteria to qualify for a merchant cash advance. The business should have a trading history of six months or more.

    UK based company
    Accept credit and debit card payments
    A minimum of 6 months trading
    A strong history of card payments with a minimum monthly turnover of £5,000 per month in sales revenue

    Lenders may want to take a look at your credit history by way of a soft credit check, these are less intrusive compared to other types of borrowing and does not leave a footprint.

    Frequently asked questions