5 Ways a Merchant Cash Advance Could Help Your Start-up

For many, starting your own business is a lifelong dream. However, when it comes to turning those dreams into a reality, the majority are left overburdened with daunting financial questions. Do I have enough savings to set-up? Will I qualify for a bank loan? Should I try and get private investment?

Well, a merchant cash advance in the UK could just be exactly what you need to kick-start your start-up. It’s a relatively new alternative funding solution, but it has seen huge growth in terms of its popularity, with many small business owners now favouring it for its unique flexibility and speed. 

Here Are 5 Ways a Merchant Cash Advance Could Help:

1. Painless Process

The process of securing a business loan, that is quick, affordable and suitable for a start-up business can rapidly become a massive headache.  Most banks insist that you provide extensive documentation and fill-out lengthy contracts with stringent terms. However, with a merchant cash advance, the process is far simpler.

Known for having particularly high approval rates, a small cash advance loan can be approved and funded direct to your account within as little as 24 hours. There’s no need to provide a business plan to qualify and you can apply simply by filling out an online application form; no calls and no paperwork.


2. Flexible Payments
A massive positive with using merchant cash advances is that the amount you repay is always relative to your business’ performance. If you have a slow month and sales are down, the amount you have to repay is also nicely lower. There are no fixed repayment amounts or periods.

You repay simply by using a small, pre-agreed percentage of your customer card sales, until the amount borrowed, plus an all-inclusive fee, has been repaid in full. So, it’s an ideal option for any business that processes a decent level of debit and credit card transactions.

3. Poor Credit Accepted

With a merchant cash advance, a perfect credit score is not required to qualify. Unlike the bank which usually demands a good personal credit history, approval for this type of funding is subject to your business’ performance, not your credit score.

4. Unsecured Business Funding

A merchant cash advance is entirely unsecured, which means there’s no need to secure the loan amount against any of your business, or personal assets. This means that your valuable assets will always remain safe and untouched. MoneyGuru provides more detailed information on what a non-collateral contract entails.

5. Affordable Funding
Depending on your business’ performance and the lender you choose to use, your business could receive a near instant cash injection of up to 6 figures. There are no restrictions on how you use merchant cash advance funding, so you are free to invest the money however your business best sees fit.

Better still, there is no interest charged on the amount borrowed. Instead you simply receive, one all-inclusive fee. This fee is always agreed upfront prior to the exchange of and funds, so you’ll never encounter any costly surprises further down the line.

Things To Consider…

A merchant cash advance is a short-term funding solution and should not be used as a permanent financial aid – your business may struggle to progress independently if it has constant outgoing payment.

That being said, a merchant cash advance in the UK is definitely a financial route to consider if you are serious about starting your own business. It will set you up nicely with a hassle-free funding solution that you not only receive quickly but can also pay back comfortably and, in your business’, own time.

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