Last post: Jan 2, 2019
When is a Merchant Cash Advance suitable? We take a look at the requirements for a merchant cash advance as well as whether or not you should choose a merchant cash advance over a traditional loan.
When is a Merchant Cash Advance Suitable for Your Business?
A merchant cash advance can be a great way to improve your cash flow, particularly if you are a seasonal business like a restaurant or a bar.
A merchant cash advance is suitable:
- When you're looking to raise finance for your business, but you need to flexible with your payments.
- When you're making significant revenue from card payments via a terminal.
- When your business is seasonal, with a large stream of revenue at certain times of the year.
- When you're a small firm or a sole trader; particularly a restaurant, bar or shop.
Criteria:
- The business needs to have a merchant/credit card terminal and be taking at least £3,000 per month via it.
- Minimum six months' trading history with your card machine.
- You can usually only obtain the equivalent of your average monthly card turnover.
- A minimum of £3,000 to £500,000
- Last six (or preferably 12) months' merchant statements, proof of ID, proof of bank account and a completed application form.
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