Does your business need fast access to funding? Do you have a high level of turnover through your merchant card machine? Want to repay inline with your turnover?
Merchant Cash Advance is a solution that works with the company’s credit/debit card machine. It works with the natural trade cycle by facilitating flexible daily loan
repayments, thus having a low impact on cash flow. It allows the business to access cash from €10,000 – €250,000. Repayments are made daily as a small percentage of your future card sales. Terms range from 3 to 12 months.
How it works
Merchant Cash Advance is a cash advance product that is focused on the Retail, Services and Hospitality Sectors. A Merchant Cash Advance is a lump sum payment to a business in exchange for an agreed upon percentage of future credit card and/ or debit card profits. Flender will provide funds to businesses in exchange for a percentage of the business’s daily credit card income. This percentage is taken directly from the processor that clears and settles the credit card payment.
Why Choose MCA over a term loan facility?
1. You run a seasonal business
Due to the repayment terms, a merchant cash advance is a good option for seasonal businesses. This is because the monthly payment amount is less when a business is making less revenue and increases when the business makes more revenue. This is in contrast to business loans that have fixed monthly payments regardless of business performance.
2. You’re an online merchant
Online merchants and other businesses that conduct a majority of their sales online are prime candidates for our MCA product. Since businesses of this nature receive payment primarily via credit card purchases, the monthly payment amount is less when a business is making less revenue and increases when the business makes more revenue. If you earn revenue via check or cash, an MCA probably isn’t right for you.
Documents required:
• Application form
• Last 2 years Filed Accounts – Unabridged version with P & L and Balance Sheet
• Up to date Management accounts if available
• Last 12 months bank and merchant statements
• Up to date tax cert – (Tax Ref Number & Access Number ID)
• Aged Creditors and Schedule of existing debt facilities.
If you are an SME in receipt of non-cash transaction and in need of finance this is the solution for you.
Get in touch with us today and learn how SME Finance Solutions can help your business.
