The best business cash advance for your business will let you borrow the money you need at the lowest cost. To start looking for a cash advance, you need to know:

  • How much you need to borrow: a merchant advance can range from 2,500 to 500,000, sometimes more.

  • Your monthly card takings: business cash advance companies use this to work out how much your business can afford to borrow.

  • How quickly you want to pay back the money: this is determined by the percentage the lender takes from your card transactions each month. Work out how much you can afford to give up from your card revenue.

This comparison shows merchant cash advance companies that offer loans you can pay back using your business card machine.

Find the lowest cost business advance

To get the cheapest advance, look for the smallest loan ratio, the closest to 1 the better.

Merchant cash advance loans work by charging an upfront fee, rather than by charging interest on your borrowing.

This is usually displayed as a ratio cost, for example: 1.3 where if you borrow 1,000 you pay back 1,300.

How do the repayments work?

Your repayments are taken directly from your card transactions. A set percentage is deducted automatically until the advance is repaid. For example:

  1. 1.

    You borrow 12,500 with a fixed 2,500 fee, meaning you owe 15,000 in total

  2. 2.

    You agree to repay 10% of your card transactions each month

  3. 3.

    You earn 10,000 a month from your card machine, so pay 1,000 back to the lender

  4. 4.

    After 15 months you will have repaid the original loan

If you earn more you pay back your borrowing faster, if you earn less you pay back what you owe slower.

Merchant cash advance FAQs

Q

Do I need a card machine to get a merchant cash advance?

A

Yes, you must generate card sales. If you do not have a card machine you can find out about other business loan options here.

Q

How quickly can I get a cash advance?

A

If your application is approved, you could have the money within 24 hours.

Q

Can I keep my existing PDQ provider?

A

Yes, you can get a merchant cash advance without changing your card machine supplier.

Q

Can I use the money for any purpose?

A

Yes, there are no restrictions on what the money you borrow is used for.

About our merchant cash advance comparison

Q

Who do we include in this comparison?

A

We include loans and finance deals available directly from lenders and through brokers on our panel. They are all regulated by the Financial Conduct Authority (FCA). Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.