Merchant Cash Advance consolidation

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Libby James
Merchant Services Expert

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

Merchant Cash Advance – how it works

Merchant account cash advance is most simply explained as a facility which allows business owners to borrow funds quickly, secured against their monthly card payments turnover. The amount that can be borrowed depends on these processing volumes. The repayments of merchant cash advance loans  are taken directly from credit and debit card volumes received at point of sale, be it via a card machine or ecommerce sales.

Merchant cash advance lenders

Merchant cash advance is ordinarily used for companies to borrow money quickly and can be utilised for any business associated reasons. Finding the best merchant cash advance will largely depend on each individual business and ensuring lenders criteria is met. Merchant cash advance companies here in the UK are just like any other mainstream lenders in the fact that lending criteria varies between providers. Therefore, its worthwhile checking your business meets borrowing criteria and affordability before applying. If you’re unsure, there are many UK based merchant cash advance Brokers to choose from.


Merchant cash advance rates

Unlike standard business loans, merchant cash advance costs can vary. The reason for this is that cash advance loan repayments are taken at a percentage rate of monthly card turnover – therefore if your company has a busier month, larger repayments are made therefore the loan is repaid quicker at a lower overall cost to the business (bear in mind this also works the other way around, meaning quieter months equal smaller repayments). As a result, this means that the overall cost of merchant cash advance lending can be estimated at the beginning of the loan agreement, based on transaction history – but accuracy can vary.

How to consolidate merchant cash advance loans

The popularity of merchant cash advance business loans amongst users, means that companies can often end up with additional borrowing from more than one lender. As a result, businesses may wish to consolidate their merchant cash advances. Reasons for doing so can include;

  • Cost saving
  • Easier repayment management
  • Preferable repayment terms
  • Change in affordability/circumstances


It’s also worth bearing in mind any other changes to the business such as switching merchant account providers or adding additional third-party streams of card payments revenue such as AirBnB, Deliveroo, etc.


Merchant cash advance providers UK

Some UK based cash advance lenders will consider applications for companies wishing to consolidate previously agreed cash advance loans. This, as always, is subject to both affordability and meeting lender criteria. It’s worthwhile considering all the costs involved in consolidation, for example you may reduce the rates of repayment but incur early repayment charges or broker fees to process the new application elsewhere.


Merchant cash advance for small businesses

Smaller businesses sometimes question how much they can borrow using merchant cash advance loans, and there are loads of online merchant cash advance calculators to help understand a rough guide. However, when it comes to consolidating merchant cash advances, some lenders will only lend a certain percentage for this reason which can be as little as 50%. For example, if you had £10 000 outstanding with an existing lender/s and wanted to switch merchant cash advance providers to consolidate, subject to affordability you could borrow £20 000 (50% for repayment of existing loan/loans and 50% for other business reasons such as cashflow, renovations, purchase of equipment etc.)


Merchant cash advance UK

Finding the most suitable merchant cash advance loan for your requirements can be tricky, which is why Merchant Advice Service have teamed up with industry experts to help you navigate the world of cash merchant advance, helping you make informed decisions when it comes to borrowing. Be it a specific lender, or if you prefer to use a broker, we’ve got you covered. And while you’re at it, why not think about saving costs on your card processing – we’re pretty good at that!

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Libby James

Libby James Co-founded Merchant Advice Service alongside David Bird in 2016. Her finance background, coupled with retail and customer service experience, gave Libby the drive to bring transparency and non-biased advice to the world of merchant services. Having come from the heavily regulated mortgage and insurance industry, Libby found it puzzling that other financial sectors lacked regulation and transparency leaving customers confused and unable to make informed decisions when it came to accepting card payments. This was soon to become Libby’s obsession!

With the help of some of the industry’s best, Libby began to research acquiring banks, complex terminology/regulation, and the problems customers experience within merchant services and payment gateway markets. She spent years on sourcing solutions for complex clients, which previously others were unable to assist with. Libby established relationships with brokers and banks which would soon form the cornerstone of Merchant Advice Service. As a result Libby has been featured in high-profile publications across the web.

Libby is proud to be the entrepreneur’s champion, supporting start-up businesses regularly. Her industry insights can often be found on LinkedIn where she provides free of charge advice and money saving pointers. It’s safe to say she has her finger on the pulse of everything card payments related.

Libby speaks of her experience in founding and running Merchant Advice Service…

‘Merchant Advice Service is one of my greatest achievements to date. We help business owners to overcome card processing issues which can become detrimental to their business. We assist SME’s in finding suitable card payments solutions, helping them create their vision. Each and every day is different, exciting and fore filling. As technology advances I can’t wait to see the way in which the merchant services market advances, and I’m pleased that our business will play a part in educating company owners along the way.’

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