Merchant Business Loans are an alternative form of business lending which uses future debit and credit card receipts as security. The principle of a cash advance is simple and quick to apply for. This is down to already having the required systems in place namely using a card payment terminal to accept payments from your customers. No form of security is needed to gain funding to receive merchant business loans, so your home is totally safe!
Merchant Account Cash Advance
Merchant account cash advances are completed in as little as 48 hours with funding from £5,000 to £200,000. Credit & debit card transactions are used as a transaction to received business funding. This means you can pay back the cash advance through future card sales. Taking all this in to accounts simply means business funding is in place quicker than a traditional bank loan!
Cash advances for merchants are the prefect funding solution for UK based business that accept card payments. To be eligible for a merchant loan advance, the criteria is usually you have been in business for over six months. You must accept card payments with a value of £5,000 or more per month.
Benefits of using Merchant Business Loans for my business?
- Applications take minutes with funding from £5,000 – £200,000
- Repayments are only made when the business makes a debit or credit card sale
- All costs are clear with no added penalties
- No up front fees
- No penalty for late payments
- 90% of UK businesses are approved for merchant business loan
Our merchant business loans allow your business to expand and can be used for a variety of reasons. Finance is available from a from merchant cash advance lenders allowing many business types and sectors to be considered for example : cash advances for pubs and bars. The funding is usually quick and easy to arrange, particularly in comparison to commercial high street bank loans.
A growing demand for merchant business loans has developed over the years since alternative funding products have landed on the UK market. SME businesses have found there is a lack of funding from high street banks that is available for existing limited companies, sole traders as well as partnerships. Filling this gap is a product called merchant business loans which advances a lump some of up-to £200,000. Unlike hight street bank loans these funds can be available within 48 hours and many clients will use them for short-term requirements multiple times.
What will it cost?
When you take a Merchant business loan a one-time fee of approx 7 -35% is added to the amount you have requested. This gives the total amount repayable to the cash advance lender. No set-up, broker, interest or administration costs are added. If your cash advance amount is example : £100,000 you will have to repay £125,000 this gives a factor rate of 1.25.
An agreed percentage of about 7% is taken on every future debit/credit card sale. The amount taken goes towards making repayment of the merchant business loan. This is taken automatically from every transaction so you do not have to make payment each month. This ensures you never miss a repayment.
Cash Advance for Business
Business that require working capital with a term time of up-to 18 months this product from PDQ Funding is perfect. The minimum requirements for business cash advances are :
- Must have been trading for more than six month
- Have a PDQ Card payment terminal
- Take credit and debit card payments of £5,000 per month
If you feel that a merchant business loan will benefit your business in terms of growth or working capital please feel free to view our website and leave your details on the enquiry form.
Once it has been received a cash advance expert will contact you and answer all your questions in regards to this product.