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  • david88077

Merchant Cash Advance

Merchant Cash Advance and its close relation Business Cash Advance have been steadily gaining market share over recent years.  These products allow businesses to raise funding against their future card and other sales.  A facility can range from as low as £4k to some as high as £1m. 


The reasons why businesses apply are:



1. Speedy to set up.


2. No formal security other than PG's.


3. Repayments are taken from cashflow so there are no sudden hits to your bank account.


4. Suitable for hospitalilty and retail sectors.



This is a convenient source of finance for businesses that often struggle with the mainstream lenders. If you are a stable business requiring a higher level of funding then better pricing is available.  Please see below for examples of some of the larger deals done recently by funders:



Events Venue – Initial £550,000

Terms: Fixed fee 16%, Sweep 22%

Revenue streams: Physical Card Sales (Square)

Funds used for refurbishments.

 

 

Multi-site Coffee Franchise - Initial £1,000,000

Terms: Fixed fee 10%, Sweep 10.50%

Revenue streams: Physical Card Sales (Adyen & iZettle)

Funds used to secure more sites across the UK.

 

Household Fast Food Franchise - Renewal £400,000

Terms: Fixed fee 10%, Sweep 10.50%

Revenue streams: Physical Card Sales (Adyen & BarclayCard)

3rd funding over 300k to pay VAT bill.



If you are interested or have any questions, please contact David on 07941 620905 or send an email to david@atlascredit.co.uk.




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