100% Recommend

Expertly compared by David Beard

Products Updated February 13, 2022

The actual rate you're offered will depend on your personal circumstances – including your credit rating.

2 providers expertly compared:

Choice Loans

Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£5,000 - £10,000,000

Annual Percentage Rate (APR)
2.6%

Loan Term
1 - 35 years

Loan Type
Business Finance Broker

Status
Homeowners & Tenants
Max LTV 95%

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Annual Percentage Rate (APR):

2.6%

Total repaid will be:

£50,805

Choice business loans can arrange a wide range of business finance solutions for business of all sizes. Services include business loans. Crowdfunded business Loans, Short term unsecured business loans, Merchant cash advance, Pension led business finance, Overdraft alternatives, Asset finance, Asset backed loans, Invoice finance, Commercial mortgages.

2 providers expertly compared:

Funding Options

Loan Amount
£5,000 - £10,000,000

Annual Percentage Rate (APR)
From 2.6%

Loan Term
1 - 35 years

Loan Type
Business Finance Broker

Status
Homeowners & Tenants

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Annual Percentage Rate (APR):

From 2.6%

Total repaid will be:

£50,805

Funding Options is a credit broker and not a lender. They match small businesses like yours to different loan providers every day. Whether it's business loans, commercial mortgages, invoice financing, asset leasing, growth finance or something else, they can help find you a great deal.

Read our customer and visitor reviews for this product:

Rating: 4.5 / 5 with 2 votes

Good comparison

by Mandy Thomson

Good comparison service and lenders to choose from. Easy application form.

Plently of loans to choose from

by SL

These facility by Feasible.co.uk provided many solutions and gave me choice of several lenders as part of the search. Vey fast and no issues using them. Quick to phone me back also.

 

Apply for a Merchant Cash Advance with Lending Expert Today!

If you take credit card payments every day, you can receive a merchant cash advance to give you money upfront and help your business get a healthy cash flow.

Lending Expert works with a number of merchant cash advance companies and you can compare the loan amounts and terms using our comparison table provided. You can receive an instant decision and funding can be available within a few hours, the same day or next business day.

Simply click on ‘Get a Quote’ to start your enquiry and check your eligibility for a merchant cash advance loan immediately!

What is a Merchant Cash Advance? How Does it Work?

A merchant cash advance is way of receiving money upfront from predicted and future credit card sales. With businesses such as retailers, restaurants and hotels regularly taking payments by credit card, these can take 30 or 90 days to clear and create a bit of a shortfall in cash.

But with a merchant cash advance lender, you can receive a sum of your predicted sales upfront, ranging from £5,000 to £500,000 and use this money to pay your staff, rent, buy stock, make purchases and any other business expenses.

Every repayment plan is bespoke and whilst this is generally starts around 1.9% APR, your lender will agree to take a very small amount of your daily sales which is used to repay the loan.

The process is very straightforward, since the money is paid upfront to you and repayments are collected and processed through your credit card terminal machine – making it a convenient and very smooth process.

 

Key Features

  • Borrow £5,000 to £500,000
  • Repay over 1 month to 5 years
  • Rates are personalised, but start from 1.9% APR
  • Money paid upfront
  • Automatically repaid through your card terminal
  • Security or guarantees may be required

 

Who Uses Merchant Cash Advances?

Merchant cash advances are often used by companies, big and small, that take credit card and debit card payments regularly and is likely to be their main source of income.

This includes:

  • Shops and retailers
  • Grocery stores
  • Restaurants and bars
  • Hotels and B&Bs
  • Hair and beauty salons
  • Fashion and clothes stores
  • eCommerce and online stores

This type of alternative funding is useful for staying on top of your cash flow or if you have expansion plans. Rather than having to wait 30 or 90 days for payments to come through from the likes of Visa or American Express, you can receive the money upfront and only pay very small amounts of interest.

 

How Long Can I Use it For?

Merchant cash advances can be used from just 1 month for up to 5 years. You can use this product for as long or as short as you would like, with the option to end and clear your account if you would like to.

If you are trying to stay on top of your cash flow, you may want to borrow money for longer but to avoid paying extra interest, consider exactly how long you might need it for.

 

How Much Does a Merchant Cash Advance Cost?

A merchant cash advance does not typically have an APR, since every repayment plan is based on the individual business and their predicted card sales. Around 1.9% APR is the starting rate, suggesting that it this a very low cost form of finance.

The cost works on a percentage of sales and the lender will work directly with your card terminal processor to automatically take a small pre-agreed percentage of your total daily card sales.

 

Is My Business Eligible for a Merchant Cash Advance?

  • You must have a UK limited company that is trading in the UK
  • The business has been trading for a minimum of 6 months (some lenders may require 2 years trading history)
  • Monthly credit card sales of at least £5,000

 

What Information Do I Need to Provide?

  • Proof of limited company
  • 4 months’ worth of credit card statements
  • 3 months’ worth of business bank statements

Depending on the lender, you may be required to provide security and personal guarantees.

 

Can I Get a Merchant Cash Advance with Bad Credit?

Yes, you can still be eligible for a merchant cash advance with a bad credit history, since your eligibility is largely based on your predicted card sales, not your personal history of repaying credit cards and loans.

If you have a business that is trading and continuing to generate sales each month, you can borrow money based on your future sales.

 

Are Merchant Cash Advance Loans Safe?

Yes, very much so. Whilst not regulated by the Financial Conduct Authority, it is a safe form of funding.

The only way that merchant cash advances can get a bit tricky is if you are struggling to repay. If you have used security or a personal guarantee, the lender could use repossession of your property or your guarantor’s as a way to recover their debts.

You should always consider how you are going to repay your loan and always be open and transparent with the lender if you are facing financial difficulty.

 

What Alternatives Are There?

If you are looking for other cash advances for your business, you can compare business loans from Lending Expert, which can be secured or unsecured depending on your preference.

You can also consider borrowing money from family and friends or using 0% credit cards or credit cards for large purchases as a way of accessing finance but giving yourself up to 30 days to make repayment.

 

How To Apply for a Merchant Cash Advance with Lending Expert

Use our price comparison table from Lending Expert to compare merchant cash advances today!

You can choose how much you want to borrow and how long for and simply click on ‘Get a Quote’ to check your eligibility today!

To proceed, make sure you have some key information including your monthly credit card sales and a record of these from the last 4 months.

You can usually get an immediate decision and funding can often be made on the same day or within a few days of being approved.

At Lending Expert, we are delighted to offer a free, impartial and effective way to compare financial products and for any further questions, please contact us directly.

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