The benefits of Merchant Cash Advance for SME’S

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The benefits of Merchant Cash Advance for SME’S

As business owners we all know that cash is vital for any business. Without cash you can’t grow your business, nor can you pay your suppliers which eventually will stop the growth of your business.

This is why a merchant cash advance is a great alternative source of funding especially for many businesses for which a commercial bank loan is not an option due to either lack of credit rating or don’t want to be tied to a fixed repayment amount when they have a fluctuating sales periods within the business.

A merchant cash advance is not a loan but a pre-purchase of your businesses future card sales. The merchant provider secures the right to retrieve a portion of your future card sales each month, but you as a business can receive a lump sum that is paid at the outset of the agreement and because you’re not tied to any fixed amount, you repay less when things are slow and more when business is flourishing.

Eligibility is simple; based on your card sales history, your business can access finance equalling its average monthly turnover of credit card transactions.

5 reasons why this is a great alternative:

Bad Credit

Applicants with Bad Credit are Accepted

A history of bad credit can prevent you from obtaining funding from a traditional lending source.


The Approval Rate is High

Small business loans involve strict credit requirements, complicated contracts and extensive documentation. Since merchant cash advances are not based on personal credit, time in business or financials, the approval rate is high.


No Credit or Collateral is at Stake. 

Another advantage is that a merchant advance is not a loan; it is a sales transaction. Because of this, they are not reported on credit reports and do not require collateral like a business loan.

easy application

Easy Application Process

A commercial loan can take weeks or even months to finally be processed. A merchant cash advance, on the other hand, can be available within the same week that the application is processed.

Hassle Free

Simple and Hassle-Free Payback

The application process for a merchant cash advance is not only simple and hassle-free, but so is the collections process. A merchant cash advance payback is revenue-based. Meaning, when you have a busy month you will payback more, and when you have a slower month the payback amount will be less. This percentage-based collection policy allows a business to grow instead of draining its funds.

At First Payment Merchant Services we are ushering in a new dawn of funding, our Smart Business Funding solution is stepping in where traditional banking will sometimes fear to tread. If your interested if finding out more about our Cash Advance, then call our friendly team on 01276 605690

2019-02-01T10:46:36+00:00 Card Machines, Cash Advance|