What is a Merchant Cash Advance?

A Merchant Cash Advance is a type of unsecured business loan, that can support business cash flow over the short term via an instant cash advance. There is no APR applicable or hidden costs, but rather an agreement, that typically lasts from 6 months up to a year, and is repaid as a fixed percentage of future customer credit card sales made through card terminals. Now considered one of the most flexible forms of business funding, as repayments are proportional to sales, hence, if debit and credit card payments go down, your repayments also decrease- this makes cash flow management easier to handle.

What can I use the cash for?

Like most short-term business loans, you are entitled to use it how you please, as long as it is solely for use in the business, and not for personal expenses. The main expenses that businesses use merchant cash advances are the following:

  • Unexpected repairs or renovations
  • Stock
  • Working Capital
  • Emergency Expenses
  • Equipment Upgrade
  • Website development
  • Technology upgrade
  • Machinery

Advantages of Merchant Cash Advances

A Merchant Cash Advance offers many benefits to business owners and the flexibility of repayment terms is among the most lauded advantages.

  • Easier to manage cash flow
  • Repay in proportion to card sales
  • Ideal for short-term lending
  • Fast approvals
  • No security required
  • Keep 100% of cash transactions
  • No hidden costs