Merchant Cash Advance

Flexible Finance that tracks your sales

Is a Merchant Cash Advance (MCA) Right for Your Business?

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What is a Merchant Cash Advance?

A Merchant Cash Advance also known as a Merchant Loan Advance or MCA is a type of business funding based on your credit card sales.  It can give you quick access to funds, especially if your business has a low credit score or few assets. But it does have drawbacks and may not be right for your business.  Let's break it down. 

How Does a Merchant Cash Advance Work?

An MCA isn’t a loan; think of it more like a partnership. We provide you with a sum of money upfront, and you repay it through a percentage of your daily card sales, plus fees. It’s flexible, aligning with your sales, so you’re not feeling the pinch when times are lean.

  • Quick Access to Funds:
    Once you’re approved, the funds are in your account, ready for action.
  • Flexible Repayments:
    Your repayments ebb and flow with your sales, keeping things manageable.
  • No Assets? No Problem:
    MCAs don’t require assets for security, keeping things straightforward.
Merchant Cash Advance - Transparent & Tailored Solutions ELS (1)
Merchant Cash Advance - Transparent & Tailored Solutions from ELS
Merchant Cash Advance - Transparent & Tailored Solutions from ELS
Merchant Cash Advance - Transparent & Tailored Solutions from ELS

Is a Merchant Cash Advance Right for Your Business?

Let’s be honest; MCAs aren’t a one-size-fits-all solution. They’re great for businesses with a steady flow of card transactions, offering a financial boost for emergencies, equipment purchases, or working capital. But, it’s crucial to consider the costs and the impact on your daily cash flow. We’re here to help you weigh the pros and cons, ensuring you make an informed decision that’s right for your unique business. So, what are the downsides?

  • Higher Costs:
    MCAs can be more expensive compared to traditional financing.
  • Impact on Cash Flow:
    Daily or weekly deductions might strain cash flow during slow periods.
  • Not Suitable for All:
    Businesses without consistent card sales might find MCAs challenging.

Unsure what to do?

You're not alone.  We’re in this together. At ELS, we’re more than just providers; we’re partners in your journey. We’re here to understand your world and find solutions that work for your business. If a Merchant Cash Advance isn't right for your business we will tell you.

Why Partner with ELS for Your Merchant Cash Advance or Business Finance?

  • Tailored to You: Your business is one of a kind, we find solutions to meet your specific aspirations and needs.
  • Diverse and Inclusive: From retail and hospitality to trade, we support a wide range of industries.
  • Build Your Credit: Regular repayments can give your company’s credit profile a healthy boost.

Ready to Explore Your Options?

Let’s have a conversation. Discover if a Merchant Cash Advance from ELS is right for your business.

Frequently Asked Questions

MERCHANT CASH ADVANCE - MERCHANT LOAN ADVANCE - MCA

How much can I borrow?

The amount you can borrow for a Merchant Cash Advance will be based on the volume of your card sales. This is typically up to 120% of your card sales but can be as high as 200% depending on your business.

What are the interest rates on MCAs?

Merchant Cash Advances are calculated on factor rates.  Typically factor rates will fall between 1.08 and 1.40 and are heavily dependent on the business and size of the facility you require.  For example if you borrowed £10k at a factor rate of 1.2 you would pay back £12k.  This would be the total regardless of the amount of time it takes to pay back the facility.  There is no APR or penalties on MCAs.

How soon are the funds in my account?

Once approved, the funds are there, ready when you need them. This is one of the quickest forms of business finance. 

What do you need to know about my business?

As there are no assets involved, we keep it simple. We will request some basic documentation and recent bank statements.

How is this different from a traditional loan?

MCAs are flexible, quick, and don’t require assets, offering a versatile alternative to traditional routes. Speak to our expert team on 0116 389 3839

How Does ELS Differ from Other Finance Providers?

ELS offers a personalised approach, quick approvals, and incredible flexibility with access to a range of funders and financial products to suit your specific needs.

Do you have more information on MCAs?

Take a look at our comprehensive Guide to Merchant Cash Advances where we have attempted to answer as many questions about MCAs as possible.  If your question isn't covered, get in touch and we'll not only answer your question we'll add it to the guide. 0116 389 3839 or email: info@els.lease

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