When you apply for a merchant cash advance, you'll likely have a detailed plan of how you intend to spend the money - but life is never that simple. It's easy for plans to go awry and for your initial loan amount to not quite cover what you'd hoped to achieve. You can always take out another loan, but many lenders won't let you take out two loans simultaneously, and keeping track of multiple loans from multiple lenders can be difficult. This is where a merchant cash advance top up comes into play - allowing you access to more capital without the extended application process of applying for a new loan with a new lender.
- How does a loan top up work?
- What criteria do I have to meet to be eligible?
- How do I apply for a merchant cash advance top up?
- Topping up with Capify
- Unlock the money you need
How does a loan top up work?
Topping up a merchant cash advance essentially allows you to borrow more money. However it’s important to understand that the advance forms the basis of a brand new loan. The way it works is that the advance will be used to pay off the existing balance of your original loan, and you will have whatever is left deposited into your account to use continuing to grow your business.
So, for example, if your current loan has a balance of £3,000, getting a top up of £5,000 will see you receiving £2,000. If you want to make it simple – subtract the current balance of your loan from the total amount you wish to “top up”, and you’ll be left with what you’ll actually receive.
The amount the lender chooses to extend merchant cash advance terms will depend on how much more money you want to borrow, and over what period of time.
What criteria do I have to meet to be eligible?
A top up is not available to everyone who has a current merchant cash advance. There are certain criteria you need to meet before you become eligible. The primary consideration you’ll need to make is that you have to have paid off at least 60% of your original merchant cash advance before you will be able to get a top up of it. So, if you’ve borrowed £10,000 in your primary merchant cash advance, you’ll need to have paid off £6,000 at least before you can apply for any more money.
This is to protect both yourself and the lender. Every business could do with a cash injection and more money, however, if you’re taking out multiple loans you can quickly find yourself swamped. The requirement to have paid at least 60% of your initial merchant cash allowance demonstrates you have the ability to comfortably handle the continuing repayments of a top up.
How do I apply for a merchant cash advance top up?
Your lender should have provided you with a dedicated accounts manager. They will have all of your information to hand to help you – so all you need to do is reach out and tell them that you want to top up your loan. After that, they should be able to take you through the steps required in order to complete the process. If you’re not sure how much extra money you need, or you’re unsure about anything regarding merchant cash advance top ups, this is the time to ask. Be sure you fully understand the terms of the top up before you agree to borrow any more money.
Topping up with Capify
If you’ve taken out your original merchant cash advance through Capify, you’ll have access to a tailored approach when it comes to topping up your loan. We’ll happily discuss with you your current business situation and requirements, to ensure you get the right loan for you. A loan is not a “one size fits all” financial solution, so it’s important to us that we go the extra mile to discuss your needs – this means you get the right loan for you, and we get the satisfaction of further helping a small business to develop.
Getting an extended business loan is not difficult if you want to borrow more money for your business. However you should always ensure you’re dealing with a trusted and reliable lender, to ensure you’re getting the best deal possible and that your business is safe. We take our trustworthiness very seriously at Capify, always going the extra mile to help our clients reach their goals and unlock the financing they need. We understand that sometimes circumstances change and you might need a little more of a helping hand than you first thought.
Don’t take our word for it though – check us out on Trustpilot to read what our previous customers think of our service.
Unlock the money you need
Your merchant cash advance is a great way to get your business growing, but if you need a little more money to achieve your ambitions, you can get it through a merchant cash advance top up. Contact Capify to learn more.
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