Review card sales
The provider analyses historic card turnover, consistency, trading pattern and existing financial commitments.
Merchant cash advance guide
Merchant cash advance
A merchant cash advance provides capital against expected future card sales. An agreed share of eligible card takings is collected until the contractual repayment amount has been met, so daily or weekly remittances can rise and fall with sales.
Often considered for
- Short-term working capital
- Refurbishment, equipment or marketing spend
- Stock purchases and seasonal preparation
- Businesses with regular card-terminal revenue
The structure
How merchant cash advance can work
The exact process, eligibility rules and legal structure vary by provider.
Agree the advance
The offer sets the amount advanced, total contractual repayment and the share of eligible card receipts collected.
Repay through sales
Collections are linked to card takings until the agreed repayment obligation has been met.
Lender assessment
What a provider may consider
- Volume, consistency and seasonality of card sales
- Time trading and recent revenue trend
- Existing advances, loans and other commitments
- Business bank and payment-processor conduct
- The effect of the collection percentage on operating cash flow
Prepare the evidence
Information that may support the request
- Recent card-processing statements
- Business bank statements and management information
- Details of existing merchant advances or borrowing
- A clear use of funds and expected commercial benefit
- Short-term cash-flow forecast after proposed collections
Compare carefully
Points to understand before proceeding
- Compare the total repayment amount and likely repayment period with alternative facilities.
- Model the cash-flow effect at both strong and weak sales levels.
- Check processor restrictions, early-settlement terms and whether additional advances affect collection rates.
- Flexible collections do not necessarily mean the facility is lower cost.
Build the funding case
Present the need, evidence and repayment plan together
Fundry helps businesses organise a structured request for potentially relevant lenders to assess.
This guide provides general information only and is not financial advice or a recommendation. Product structures, eligibility, costs and terms vary by provider and remain subject to assessment. Review any offer carefully and seek independent advice where appropriate.