Merchant Cash Advance with bad credit

> Make A Quick Enquiry
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.

What is Merchant Cash Advance?

Merchant Cash Advance is a short-term loan which can be utilised within any business accepting card payments be it in person sales, via a chip and pin machine or online. The commonly used merchant services loan is offered based on company monthly card turnover and repayments are made before settlements. Repayments are a percentage of the card turnover, which means they can vary month to month. One of the key benefits to merchant account business loans is that it can be repaid quickly in busier months of trading or slowly in less busy times, the repayments are therefore a direct reflection of where you are with the business.

Understanding business loans – merchant cash advance

There are no blanket rules when it comes to business loans, and which companies will and won’t be accepted, merchant cash advance is no different. Merchant cash advance regulation and criteria varies between providers. Therefore, if you have been declined merchant cash advance by one provider it doesn’t mean that you won’t be able to secure funding elsewhere. Where possible, it’s great to get an idea of the reason your merchant cash advance application was declined – so that this can be disclosed on future applications. This will help to understand which merchant cash advance providers are most likely to accept your business.

Speak to Our Brokers Today!

Merchant cash advance with bad credit

Finding merchant cash advance loans when you have bad or adverse credit can be slightly trickier. Before you begin your search it’s important to understand the extent of the bad credit, when it occurred and any reason behind the issues. It also helps if the debt has now been cleared. Once you have a clear idea of your credit history, you can then approach merchant cash advance companies who have a slightly higher risk appetite and therefore more likely to accept your application. If you know that finding merchant cash advance lending may be difficult, it’s worthwhile searching for a UK based merchant cash advance broker who can package your application correctly and assist in getting your account approved.

Find a broker

Why apply for a cash advance loan

Cash advance loans with or without bad credit can be used for any business reason. The short-term cash advance finance is commonly used to resolve cashflow issues, renovate premises, purchase equipment etc. The cash advance loan is normally agreed quickly with the business receiving funds within 3-5 working days, however with adverse credit cases this can take a little longer.

Refused merchant cash advance – bad credit

Adverse and bad credit history can impact any financial application cash advance is no different. To ensure your bad credit merchant cash advance application has the best chance of getting accepted, it’s important to have your ducks in a row before applying.

Using a merchant cash advance broker will not only help you to find a lender who will consider businesses with adverse or bad credit but will package your bad credit merchant cash advance application correctly, meaning that you will get a response from the cash advance lender quickly. 

Tips for getting high risk cash advance accepted quickly

Bad credit merchant cash advance applications are deemed high risk. This is due to adverse or bad credit ordinarily being linked to previous missed or unpaid credit commitments. Therefore, bad credit cash advance providers will be more wary before agreeing to lend. They will often want to know why the adverse credit happened if it was resolved and when it was settled. In these circumstances the more information you can provide to reassure the underwriting department (the guys who decide who will or won’t agree the loan) the better!


Find a broker

Merchant cash advance no credit check

It’s normally the first port of call when you have some kind of adverse credit issues to look for a merchant cash advance supplier who doesn’t carry out credit checks. Most merchant cash advance providers in the UK will do what’s known as a soft credit check on the individuals involved in the business, this is to establish what products and rates your company will be eligible for. The difference between a soft search and a hard one is that they do not impact your overall credit score. Performing the soft search will allow merchant cash advance loan providers to decide on whether to lend. It’s worthwhile noting that due to repayments coming from card turnover alone, affordability and assessment to lend is based on this.

If you are struggling to find merchant cash advance providers who do not carry out credit searches, then it may be advisable to use a merchant cash advance broker who can point you in the right direction.

Start Your Application Today

Our team of UK based advisors are waiting for your call.

Contact Us

Merchant cash advance rates

Business owners tend to panic when it comes to merchant cash advance rates and fees, especially when they’ve experienced adverse or bad credit previously. Fees and repayment percentages are based on the overall risk profile of the merchant cash loan application – therefore its sensible to expect slightly higher rates if you have adverse credit. For help in finding the best merchant cash advance its worthwhile working with a broker, to make sure you are not paying over the odds.

Declined for merchant cash advance loans

Merchant cash finance lenders have varying risk appetites and criteria, meaning that if you have been declined by one it doesn’t mean that you’ll be unable to secure finance elsewhere. Where possible, establishing the reason for the declined application is advisable – this will aid future applications. Using a non-biased merchant cash advance broker will help find provides who will consider applications based on your unique circumstances. They can present your case to a panel of providers who have an appetite for high-risk business and in most cases find alternative lending solutions.


Is a cash advance bad for your credit?

When you’ve experienced bad credit it’s normal to be wary of how future credit agreements can impact your credit score. Taking out  cash advances with bad credit is a unsecured loan, although the repayments and term vary it is still a business financial commitment. Although it’s very difficult to have missed payments during the repayment period of cash advance services, it is possible – for instance if you switch card payments provider or stop using a third party such as eBay, Uber, Deliveroo etc. Missed or late payments can occur if you do not let your bad credit cash advance lender know. Remember this is because the repayments are taken at source. 

Despite the ordinary risks in taking out a merchant cash advance finance with bad credit, some business owners presume that the short-term finance will negatively impact their credit profile. However, if the loan is conducted properly and within the lenders terms and conditions merchant cash advance will not have an adverse effect on your credit file.

Merchant Advice Service – how we can help

Merchant Advice Service work with merchant cash advance partners to help you find the most suitable lending for your requirements. Our free and non-biased service allows you to make informed decisions about which merchant cash advance loan is right for your business. Our specially selected experts have worked with companies just like yours, meaning their well-equipped to help businesses with adverse credit progress with successful merchant cash advance applications.

Speak To Our Experts

Our team of UK based advisors are waiting for your call.

0800 304 78 75
Need help choosing the right merchant finance?
Related Articles

Need help choosing the right merchant finance?

Start your enquiry here

Contact Us
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.’

Read more
Read less
More From This Author

Make A Quick Enquiry

Speak to us directly and get any questions you have answered. Submit your details and we’ll be in touch shortly.

Alternatively you can contact us directly using:0800 304 78 75

Just so you know, we take your privacy seriously and will only use your personal information to contact you via phone, email or text with updates on the progress of your enquiry and provide information only on relevant products and services.