Is a Merchant Cash Advance safe for your small business?


Alternative finance is designed to help more businesses access finance, particularly if they’ve struggled to get approved by traditional lenders in the past. Banks are notoriously strict lenders, so alternative finance lenders often step in to make the process easier and faster.

This unique repayment model makes it a great finance option for all kinds of small businesses. However, many business owners want to know if alternative finance products like the Merchant Cash Advance are just as safe as a conventional loan.

Choosing the right Merchant Cash Advance lender
Choosing the right Merchant Cash Advance lender

There are a few Merchant Cash Advance lenders to choose from, and they all offer something slightly different. The core product stays the same, but the repayment terms can vary a bit.

To find the right lender for your business, it’s important to check the details (that includes the small print!) Make sure you’re comfortable with the percentage that’s going to be taken from your card payments, as well as how long you’ll be making those repayments for. Some are short term (just a few months), other arrangements are more long term (months to several years).

Things to consider when looking for an MCA
Things to consider when looking for an MCA

  • Do they have a physical address? Give them a miss if they don’t.
  • Is the business registered on Companies House? They should be.
  • Check review sites. Past customers should be able to give you some insight.
  • Look for adequate policies on the website. Do they clearly show how they’ll handle your data, privacy etc?
  • The biggest red flag is the promise of funds without any checks. Steer clear!
  • Make sure they don’t charge any fees before you’ve been approved. Lenders might roll fees into the finance and apply a fee to approved applicants to finalise the loan, but it’s not normal to charge before you have full approval.
Capify, a trusted MCA provider
Capify, a trusted MCA provider

You could raise £3,500+ for your small business with the Merchant Cash Advance, depending on your average monthly turnover. Designed for small businesses accepting credit and debit card payments, like retailers, pubs, bars and restaurants.

 The Merchant Cash Advance is super flexible. The regular repayments will work with your cash flow, not against it. You’ll only make payments when money comes into your business, so you’ll know you can afford it.

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