Merchant Cash Advance
A Transparent Guide to Your Business Growth
Is a Merchant Cash Advance (MCA) Right for Your Business?
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.
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?
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?
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
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.
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.
Once approved, the funds are there, ready when you need them. This is one of the quickest forms of business finance.
As there are no assets involved, we keep it simple. We will request some basic documentation and recent bank statements.
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.