MERCHANT CASH ADVANCE
Merchant cash advances (MCAs) are one of the most innovative products in alternative business finance. The concept has only existed for a few years, but it’s already proving very popular in the retail and leisure sectors. Put simply, an MCA uses your card terminal as security for borrowing — perfect for businesses without many assets, but who have a good volume of card transactions every month such as retailers and pubs/restaurants.
Repayments are taken directly from the terminal provider and are taken as a percentage of card takings, meaning it is perfect for seasonal businesses as you repay a percentage of sales as opposed to a fixed amount.
THE BENEFITS
- Frees up other forms of finance. Because no assets are used, it allows a business to use those other assets for additional forms of finance
- Whilst other forms of finance can only be accessed with 2 years+ trading, you can obtain an MCA much more quickly
- Repayments taken directly from the terminal provider so you never see the money in your bank account so never miss it
- Flexible in that repayments are in line with sales