How is a merchant cash advance repaid?

Repayment is what makes a merchant cash advance different from a loan, and for the right business it is the appeal.

• It comes out of your card takings. An agreed percentage of each day’s card sales goes towards repayment automatically, through your card processing.
• It flexes with trade. Busy days repay more, quiet days repay less. There is no fixed monthly figure to find regardless of how trade is going, which suits seasonal businesses.
• The cost is fixed up front. Rather than an ongoing interest rate, you agree a set fee at the outset, so you know the total amount you will repay before you take the advance. There is no separate compounding interest to track.

The trade-off to understand is that, because the cost is a fixed fee, repaying faster during a strong spell does not reduce the total the way overpaying a loan might. You are paying an agreed amount for the advance, spread across your takings.

For a business with steady card sales that values predictable cost and repayment that eases off in quiet periods, that structure works well. We will make sure the numbers stack up for your trade pattern and compare providers before you commit.