Merchant Cash Advance
Funding that flexes with card takings.
A merchant cash advance may suit businesses that take a consistent volume of card payments. Repayments are collected as an agreed share of card receipts, so the amount repaid moves with trading rather than following a fixed monthly schedule.
Common uses
- Stock purchases
- Refurbishment
- Seasonal cash-flow gaps
- Short-term working capital
Who it may suit
- Retail businesses
- Hospitality and leisure operators
- Businesses with steady card turnover
Information lenders may ask for
- Recent card-terminal or payment-provider statements
- Average monthly card turnover
- Trading history and business background
- Purpose of the advance
- Existing borrowing details
Important considerations
- The cost is a fixed fee, so it is worth comparing against other short-term options
- Repayment pace depends on card volumes and can extend if trading slows
- Providers usually want to see a settled trading history with a card processor
How Clear Route supports the process.
Advances are usually sized against recent card turnover and repaid through a percentage of daily or weekly card settlements. Total cost is normally expressed as a fixed fee rather than an annual rate.
- 01Review card turnover and trading pattern
- 02Clarify how much funding the business needs and why
- 03Assess likely lender requirements
- 04Approach suitable providers
- 05Explain the total cost, repayment share and conditions
Questions about merchant cash advance
Because repayments are a share of card receipts, the amount collected falls with turnover. The advance simply takes longer to repay, though the agreed fee does not reduce.
Discuss merchant cash advance with a funding specialist.
You do not need to know the name of the finance product before getting in touch.