How your finances may prevent your business from securing a merchant cash advance?

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Written by Michael Foote , founder of Quote Goat, with over 13 years experience working in the finance, insurance and currency sectors.

We’ve discussed in depth what you will need to help secure merchant cash advances form some of the UK’s leading lenders, as well as from some of the newer, independent lenders that offer alternative sources of business loans. But what is also important for businesses to consider – especially newer business that haven’t been operating long – is what could make you exempt from applying for a merchant cash advance.

Before you head online (if you aren’t already there) and start comparing merchant cash advance quotes, make sure you know what your business may currently be doing that may make it difficult, if not impossible for you to secure this type of loan. Nobody wants to waste time filling in an application, only to be turned down.

This is how your current finances may prevent you from being accepted for a merchant cash advance:

Transaction Volume


Most lenders look at the amount of credit card transactions you make each day, week or month before considering you for a loan. There are different cut off points for each lender but most will look for a relatively high amount of card transactions over the course of a month, ideally from a large number of clients; having few clients that pay big can be a worry for merchant cash advance lenders as this can become a precarious income in the future, creating more of a risk for them.

Cash Processing

Lenders will also look at how much cash you process, as well as or instead of transaction volume. On average lender require you to process around £60,000 a year or £5,000 a month in card payments.

Turnover and Profit

If a business is not turning a profit it can be difficult to secure funding as they will be seen as a very big risk in investment terms. On average lenders will look to provide a loan with a total value of around 25% of a business’ total card transactions.

Whatever situation your business finds itself in, always make sure you compare merchant cash advances online to ensure that you find the right deal for your company.




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