Merchant Funding
A Merchant Cash Advance (MCA) is a type of financing where a business receives a lump sum of cash upfront in exchange for a percentage of future credit card sales or daily bank deposits. Instead of fixed monthly payments, the lender takes a portion of the business’s daily sales until the advance is fully repaid. MCAs are often easier to obtain than traditional loans.
Eligibility for a Merchant Cash Advance (MCA) typically depends on the following factors:
Business Revenue
Your business should have a steady flow of credit card or debit card sales, as repayment is based on a percentage of these sales.
Time in Business
Lenders usually require that your business has been operating for at least 3 to 6 months.
Monthly Sales Volume
A consistent monthly sales volume, often around £3,000 to £10,000 or more, is typically required.
Credit Score
While personal credit scores are considered, they are less critical than in traditional loans. Even businesses with lower credit scores may qualify.
Business Type
Businesses with regular card transactions, like retail stores or restaurants, are often more eligible.
If your business meets these criteria, you may be eligible for a Merchant Cash Advance.
