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Business Finance

Merchant cash advance

Access business funding with repayments linked to future card sales. Merchant cash advances can provide an alternative funding structure for businesses with regular card transactions.

Finance at a glance

Key details to help you understand this finance option at a glance.

Purpose

Working capital and general business expenditure

Finance amount

Typically assessed using card turnover and provider criteria

Finance term

Repayment duration varies with the structure and level of card sales

Suitable for

Businesses generating regular debit and credit card revenue

Key note

A merchant cash advance is structured differently from a conventional fixed-term business loan. Costs and repayment arrangements should be reviewed carefully.

What is a merchant cash advance?

A merchant cash advance provides a business with an agreed amount of funding in return for repayment from future card sales. Rather than relying solely on fixed monthly loan instalments, repayment is generally linked to card transaction revenue under the provider’s agreement. This structure can suit businesses such as retailers, hospitality operators and other companies where card payments represent a substantial part of turnover.

How does a merchant cash advance work?

The amount and repayment structure are generally assessed using the business’s card transaction history.

Review card turnover

The provider assesses historic debit and credit card sales.

Determine the advance

An available funding amount and repayment arrangement are proposed.

Complete the agreement

If accepted, the business enters into the provider's merchant cash advance agreement.

Repay through card sales

Repayments are collected in line with the agreed card-sales-linked structure.

What can a merchant cash advance be used for?

Funds can generally support legitimate business expenditure subject to provider terms.

Stock

Purchase inventory for upcoming customer demand.

Refurbishment

Improve retail, hospitality or customer-facing premises.

Working capital

Support general operating costs.

Equipment

Purchase equipment required for business operations.

Marketing

Invest in customer acquisition and business growth.

Potential benefits of a merchant cash advance

For businesses with consistent card sales, a merchant cash advance provides a repayment model linked to transaction revenue.

Card-sales-based repayment

Repayment is linked to card transactions under the provider's agreed structure.

Business funding

Access capital for a variety of commercial requirements.

Alternative assessment

Card sales history can be an important part of the provider's assessment.

Is a merchant cash advance suitable for your business?

It is primarily designed for businesses that receive a meaningful and consistent proportion of revenue through card payments.

Retailers

Businesses with regular in-store or online card transactions.

Hospitality businesses

Restaurants, cafés and other businesses with frequent card revenue.

Service businesses

Eligible businesses where customers commonly pay by debit or credit card.

The Somerset process

A straightforward, supportive process from initial discussion to completion.

01

Understand

We take time to understand your business, your goals and your finance requirements.

02

Explore

We assess your requirements and explore suitable finance options from available lenders.

03

Apply

We support you through the application process and liaise with the lender as required.

04

Complete

Once the finance is approved and completed, you can move forward with your business plans.

Why Somerset Financial?

Straightforward support to help you explore suitable business finance options for your circumstances.

Finance options explored

We help you explore finance options based on your business requirements and circumstances.

A personal approach

We take time to understand your business, objectives and funding requirements before exploring suitable options.

Tailored to your business

Finance requirements vary from business to business, so we focus on options relevant to your individual circumstances.

Clear guidance

We explain the available options and process clearly, helping you make an informed decision.

Support through the process

We support you through the application process and liaise with the finance provider where required.

Focused on your objectives

Whether you are investing, replacing equipment or managing cash flow, we focus on finance options aligned with your business objectives.