What is a Merchant Cash Advance?
Merchant Cash Advance or (or Merchant Funding) is an easy and quick way to finance your business without taking a traditional bank loan. MCA allows you to access funds against your future card sales. It is designed for companies that accept card payments.
The amount of MCA depends on the volume of your monthly card transactions. Repayments are collected as a fixed percentage of each future sale until the advance is fully settled.
Merchant Cash Advance on Same Day
An MCA is an urgent way to get money for your business. Mostly the MCA providers provide funding within 48 hours or 2-3 days. But there is also a sector that can get you funds in just one day, unlike regular loans that take a long time. This speed can help if you need money right away for something urgent.
The best part about a same-day MCA is that it’s simple and fast. With a short application and very little paperwork, you can get the money you need without waiting. Small businesses use this money to deal with their immediate finances, like any unexpected costs, vendor payments, employee payments, utilities, rent, managing inventory, paying suppliers, and much more.
And yes, it’s possible to get a same-day MCA in the UK. With the right lender, you can have the funds in your account by the end of the day. We’ll guide you through the process, requirements, pros, and cons of same-day MCA funding.
Do you need a Merchant Cash Advance?
What are the Requirements?
These are the requirements to qualify for same-day Merchant Cash Advance:
- Your business receives payments through card terminal machines.
- A good volume of card transactions (typically more than £5,000).
- Profitability to show that you can repay the loan (you have been in business for more than 6 months or a year).
- Valid identification, like your identity card or passport.
- Your business license proves that your business is registered by the government.
- A soft credit check to check for your business performance in the past.
Process for Same-Day MCA Funding
Here’s what you need to do to secure same-day MCA funding:
1. Getting started for same-day MCA
The first step to getting started is to have the necessary documents ready for the process. Even if you haven’t found a lender yet, having these documents beforehand will give you a headstart because most lenders ask for typical records like your business’s sales records, bank statements, or credit card sales.
2. Choose a lender that meets your requirements
This step is the major one if you want to secure same-day MCA funding. You want to look for a lender that specialises in timely funding. You can do that by looking up lenders online and then comparing their reviews.
At this point, we can jump in to make the selection process easy for you. ComparedBusiness can provide you with a list of MCA providers that can lend you funds in just 24 hours. All you need to do is submit your requirements and we will get back to you.
3. Proceed with your application
Each lender will provide you with some kind of form or application to fill out. After choosing a lender that meets your time limit and budget, complete the application form they provide. This step should be a breeze for you since you have already prepared the basic documents before.
4. Apply on time
To secure same-day MCA funding, we advise that you submit your application early in the day. This will maximise your chances of same-day approval and you can make the most of the working hours.
5. Remain in contact with the lender
After you have submitted your application, you must remain available by phone, email, or any other communication details you provided on the application form. The lender may need to clarify details or request additional information at any point throughout the process. Being available can speed up the approval process.
6. Get approved
If your application meets the requirements of the lender, you’ll receive approval within 24 hours. Being in constant contact will speed up the process so make sure you keep an eye on your email for notification of approval.
7. Receive your funds
Once your application is approved, the money will be deposited directly into your business account on the same day.
Providers for Same Day MCA Funding in the UK
Our team at ComparedBusiness has shortlisted top providers in the UK who offer MCA funding for small businesses in 24-48 hours. Learn more about the requirements of these top MCA lenders and see if you are eligible for same day MCA finding.
| Lender | Loan Amount | Application Speed |
|---|---|---|
|
365 Business Finance |
£10,000 - £400,000 |
Same-day approval |
|
Capify |
£5,000 - £500,000 |
Same-day approval |
|
Liberis |
£1,000 - £1,000,000 |
Same-day approval |
|
Momenta Finance |
£10,000 - £150,000 |
Same-day approval |
|
YouLend |
£3,000 - £1,000,000 |
Same-day approval |
Cost of Same-Day MCA
There is no upfront payment or hidden cost associated with MCA. You just have to pay from your future card sales. A percentage of your future card transactions goes to the lender until the advance is repaid, hence, there is no fixed timeframe.
Factor Rate
The factor rate determines the total cost of the merchant cash advance. It is set by both parties at the time the MCA offer is made. In the case of same-day MCA, the factor rate can be somewhere between 1.2 and 1.5.
With a factor rate of 1.5, for every £1 borrowed, you’ll need to repay £1.5.
For example, if you borrow £1000 at a factor rate of 1.5, you’ll repay £1500 from your future card sales. If you take out £1000, you’ll be left with £500. This means that the fees for MCA funding were 50% of the amount you originally borrowed.
Credit Check for MCA
Lenders perform a soft credit check before providing merchant cash advance funding. This credit check analyses how your business deals with debts or financial situations.
It will show various financial details, such as existing loans, your spending, mortgages, debts, or traditional bank loans associated with your bank account. Merchant financing focuses on the business’s sales history and potential future sales instead of its credit history.
Why are credit checks important?
In merchant cash advances, lenders provide money based on future card sales and do not require any collateral beforehand. These lending companies take on significant risk, and they need to ensure that the client they are working with is worth this risk.
By reviewing a business’s credit history, lenders can see how well a business has managed its finances in the past. Reliable lenders use this information to ensure that they are not taking on excessive risk by lending to borrowers who might not be able to repay.
4 Best Ways to Use the Same-Day MCA Funds
Here are four smart ways to use Merchant Cash Advance (MCA) funds:
1. Maintain your cash flow
Use MCA funds to keep cash flowing smoothly in your business. You can use these funds when you are paying your bills, managing your inventory, launching a new product, or just want to have some extra cash on hand to deal with your usual expenses.
2. Maintain your supply-chain flow
Maintain your supply chain smoothly by using MCA funds to pay your suppliers. If you have just finished a project and have overdue bills or are taking over a new project, there’s no harm in paying your suppliers on time. In fact, it can be helpful for you because you can keep good relationships with your suppliers, secure discounts for early payments, and ensure a steady flow of inventory for your business.
3. Pay off your high-interest debt
If you have taken loans in the past or are dealing with debts currently, using MCA funds to clear them is a smart move. Debts with high interest rates are liabilities, and they can pile up over time. This will potentially save you money in the long run.
4. Emergency expenses
Surprise expenses can be hard to manage if you don’t have an emergency fund but MCA funds can be your safety net for such finances. Whether it’s fixing broken equipment, or making up a rough patch in sales, having that extra cash can be a lifesaver.
Pros and Cons of Same-Day MCA
| Pros | Cons |
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Explore Top MCA Options In The UK With ComparedBusiness
ComparedBusiness can help you secure same-day Merchant Cash Advance funding from the top vendors in the UK. Just submit your requirements in less than 2-mins and we will match you with the top financial institutions in the UK. You can pick and choose the best option as per your business requirements.
