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Merchant Cash Advance and E-commerce Finance

Merchant cash advance (MCA) allows businesses to boost cash flow by linking a flexible loan facility with the turnover taken through card machines.

These are great facilities for businesses that work with the public and can often be restricted in what forms of finance they can secure.

An agreed amount is advanced to you, which is then repaid as a percentage of the daily transactions taken via credit and debit cards. The amount you repay depends on that day’s takings. If you have a slow day, you will not pay much; on a busier day, you will pay more. 

On the blog: What Is A Merchant Cash Advance?

E-commerce finance is a specialist product linked to online sellers. These lenders will typically have a good understanding of how your industry works and will link their facility and repayments to your sales. These facilities can often be scaled up as you grow.

Find out more in our blog on Funding an e-commerce business.

E-commerce Finance FAQs

Once your loan has been advanced, it is then repaid by an agreed percentage of the sales taken by debit or credit card. These repayments can be made daily, weekly, or monthly.

Repayments are typically over a range of 3 – 18 months. The timescale will be agreed with you prior to the loan being made.

The amount will depend on the agreement with the individual lender, but typically you will repay aproximately 10% of each card sale.

£161,000, selective invoice finance building contractor, smooth out periodic cash flow issues. £7,500, unsecured loan building contractor, equipment purchase. £90,000, asset finance civil engineer, finance for fleet of vans. £240,000, secured loan equestrianism, debt refinance. £50,000 unsecured loan for improved cash flow, with no early repayment charges and £20,000 flexible draw down facility £250,000 Factoring facility - plastics manufacturer. Facility moved from unsupportive lender to new one to support growth.