Can a New Business Get a Merchant Cash Advance?
A leisure and drinks company only a few months old secured a £80,000 Merchant Cash Advance. Here is how, and what it means for newer businesses.
Many business owners assume a young company has no chance of getting funding. A recent case shows why that isn’t always true.
The case in brief
A leisure and drinks business had been trading for only a few months. On paper, that made it look risky. In practice, it was already turning over strong revenue, and the people running it had a solid trading track record.
- Funding: £80,000 Merchant Cash Advance
- Product: Merchant Cash Advance (MCA)
- Time to offer: 3 hours and 7 minutes
- Result: Funded
Why age isn’t the whole picture
Many funding decisions rely on a simple rule such as “must have traded for 12 months”. A rule like that can rule out a healthy business just because it is new.
Our funding team looked past company age at how the business was actually performing: its revenue, and the experience of the people behind it. That gave a clearer view of the risk than the incorporation date alone, and it led to the offer.
What this means for your business
If your company is newer, you shouldn’t assume the answer is no. A lender who looks at the whole picture may see strengths a basic checklist misses. The things that tend to matter most are:
- Consistent, healthy revenue
- The track record of the directors
- How you take payments, such as card sales
What is a Merchant Cash Advance?
A Merchant Cash Advance gives your business a lump sum, which is repaid as a share of your future card takings.
Repayments move with your sales, so a quieter week means a smaller repayment.
Is an MCA right for you?
An MCA can suit businesses that take regular card payments and want funding for growth, stock or new opportunities.
Talk to us
If you think your business could look strong on closer inspection, contact our team today. We will look beyond the paperwork and tell you what is possible.
