Merchant Money is now an accredited lender under the government’s Coronavirus Business Interruption Loan Scheme (CBILS). This means Merchant Money is able to provide loans and finance to businesses that have been substantially affected by the ongoing pandemic.
Merchant Money is a direct lender (not a broker) authorised and regulated by the Financial Conduct Authority. It was launched in 2013 in response to a decline in small business loans being offered by mainstream banks. It uses smart technology to evaluate risk, which enables it to give potential borrowers a decision on funding within 24 hours.
Help your business grow with Nucleus Cash Flow Finance
If your business has been trading for at least 3 years, Nucleus Cash Flow Finance can provide the additional funds for your SME needs.
A small business loan is usually most effective for bridging short-term cash flow gaps.
Key features of a Merchant Money business loan
Borrow £3,500 to £150,000. Unsecured business loans with Merchant Money vary from £3,500 to £150,000. It offers secured business loans up to £500,000. It also offers regulated business loans to sole traders.
Short repayment terms. Repay over short terms of up to three years. This may suit small businesses better than the typically longer terms of a mainstream bank loan.
Fast funding. Get a decision within 24 hours and funding within 48 hours.
No paperwork. Simply answer a few questions online.
Top-ups considered. Provided you meet your repayments on time and your business continues to perform, you can be considered for a top-up loan. You may need to provide updated bank statements.
No early repayment penalty. Merchant Money will not charge you if you repay your loan early.
Am I eligible for a business loan with Merchant Money?
You should only apply for a Merchant Money business loan if you are sure you can comfortably meet the repayments. You must also:
Have a company registered in the UK.
Only have affordable current debt obligations.
Have a minimum of one year’s accounts.
Have a minimum annual turnover of £100,000.
Not have a previously liquidated business with outstanding creditors.
Have a director or shareholder who is a homeowner over 18 years of age.
How does it work?
Fill out the simple online application form, which should only take a few minutes.
Receive a call the same day from a personal adviser to discuss your application.
Get a decision within 24 hours once all the required documentation has been submitted.
The interest rate you are offered will depend on factors like the amount you apply for, the term of the loan, the performance of your business and its credit rating. This may differ from any advertised “Representative APR”.
Merchant cash advance
Merchant cash advances are most suited to small businesses with a seasonal trade, or an income that ebbs and flows (for example restaurants, retail, medical/healthcare or auto companies). With a cash advance, the repayments are directly linked to your cash flow. So on good days you pay more and on slower days you pay less. There is also no rush to repay the money as the total amount repayable is fixed. Whether you repay in 3 or 14 months, the total repayable that you have agreed on will remain the same.
Key features of a merchant cash advance
Get up to £500,000 to grow your business.
Repay through a small percentage of each future card transaction.
A minimum average monthly card turnover is required.
No fixed repayment periods.
You only pay as you trade; when the business is quiet, you pay less.
Top-ups available after four months.
No collections from cash payments.
Works with all card terminals.
How does it work?
Apply for a loan amount that suits your business requirements. The maximum available will depend on your average monthly card transactions.
You’ll need to provide three months’ bank statements and your last six months’ merchant statements. In some cases you’ll need to provide filed accounts.
Agree on the fixed repayment amount with Merchant Money.
A fixed percentage is collected directly from card transactions with no fixed term or fixed monthly repayment.
Am I eligible for a merchant cash advance?
You should only apply for a Merchant Cash Advance if you are sure you can comfortably meet the repayments. You will also need:
A minimum of six months’ trading through a PDQ (Processing Data Quickly) machine.
A minimum monthly turnover through card terminals.
No other cash advance in place (unless it’s being refinanced).
Get tailored loan quotes
Save time by checking eligibility with multiple lenders and get quotes for BBLS/CBILS and other loans.
Unfortunately, it doesn’t offer loans to startups. If you apply for a business cash advance, it needs to see a minimum trading period of 6 months. For business loans, the applicant is required to have been trading for a minimum period of 12 months.
Yes, it uses its patented technology to search a vast amount of data before approving your loan. With your permission, it will use Credit Reference Agencies to check your business and personal credit reports.
Yes. All data is fully encrypted and Merchant Money will not share any details with other third parties without your consent.
If you find you are struggling to repay on time, speak to your account manager who will hopefully help you to find an affordable way to repay your loan.
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
Business loan statisticsBusinesses all over the UK face financial instability daily, which often requires outside funding. We have looked into how the state of borrowing for these businesses differs between the industry, over the years, and for the size of the business.
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