Merchant Cash Advance

What is a merchant cash advance?

This could be the funding solution for you!

Rather than a loan, MWBS offers unsecured funding by purchasing a portion of your future card sales. This smarter money management provides flexibility not only for your existing requirements but for your future needs.

This means you can scale your business your way 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. Unsecured funding means you won’t need to use an asset such as a property to secure against borrowing.

No hidden fees, no need for a perfect credit score, and because it’s not a loan your credit score will not be affected. 75% of all applications are successful and a pre-approved decision is made on average in 24hrs.

Funding from £2,500 - £300,000

One fixed cost with no APR, harsh carrying terms or penalty fees

Flexible and painless repayments that support cash flow

A quick, easy and no hassle onboarding process

Assistance from our experts

Over 70% of eligible customers renew

Higher approval rates than banks

Our Merchant Cash Advance product is just the same as our other products here at Modern World Business Solutions, agnostic to your requirements as a merchant.

A Merchant Cash Advance is an up-and-coming way for businesses to receive funding quickly and to repay it through the takings on their card machine over a shorter period of time, only paying a set percentage of each transaction. This works perfectly for merchants as they will only ever repay the loan at the same level of commitment regardless of the peaks and troughs that we all know are inevitable in business. If you have a quiet month, you are not committed to paying a large monthly repayment and this is what makes a Merchant Cash Advance so attractive to business owners requiring quick funding.

Reasons for a Merchant Cash Advance might be...

Refurbishment

VAT or HMRC bill

To get through a quiet period

Increase cashflow

Frequently Asked Questions

Learn more about Merchant Cash Advance.

What might you expect to pay back on a Merchant Cash Advance? And how does it work?

Because of the nature of Merchant Cash Advances, they can be seen to be an expensive way of borrowing, having said that they do offer the most flexible payment plans. Ordinarily, the factor rate can get to around 1.3 although this does fluctuate depending on the creditworthiness of a merchant. – what this means is that to work out your total amount repayable you need to multiply the loan amount by 1.3 – for example if you borrow £10,000 you would x this by 1.3 to get a repayment of £13,000.

This £13,000 will be payable over the agreed time frame, usually over 12 months at an agreed rate per transaction. This might be 10% or 15% per transaction until the loan is fully repaid.

How much can I borrow?

A merchant can usually borrow an average of the last 12 months yearly card turnover for their Merchant Cash Advance.

How quick can I get my funds?

Once an application for your Merchant Cash Advance is in, it is usually turned around very quickly. If accepted, we would expect to have you funded within a week.

What documents do I need to get together?

The documents that you need to get together to put forward your application are listed below.

Directors ID
12 months acquiring statements
3 months bank statements
Proof of business address
Proof of director’s address

Once you have these documents on hand, you could fill out our API-driven application form below which puts your application straight into the queue!

How do I know I'm getting the best deal for my Merchant Cash Advance?

Just like all our products at Modern World Business Solutions we work as a direct but agnostic brokerage. This means that we have multiple lenders that we search on your behalf before depositing your application with the best fit for you as a business. We will always discuss your options with you and work with you to choose the best fit from the collection of offers you have for your Merchant Cash Advance.

Is there a minimum I can borrow and any other criteria?

Yes – We can only apply for £5,000 as a minimum Merchant Cash Advance and £200,000 as a maximum, your business must also have been trading for 6 months as a minimum for you to qualify for a Merchant Cash Advance.

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