Merchant cash advance loans

PDQ cash advance

PDQ cash advance is most commonly known as a merchant loan advance, but what does that mean? Merchant cash advance loans are becoming more common within the UK, so we’ve put together a simple guide to explain the benefits behind this new type of loan, and how it can work to your businesses advantage.

So, what is PDQ merchant cash advance?

Put simply this is a short-term unsecured loan. The repayments are taken at source from the transactions received from clients via the PDQ machine. These repayments are charged at a percentage split, usually 5%-25% of each transaction goes towards repaying the loan.

The loan is normally paid back within a twelve-month period. Benefits of merchant cash advance include;

  • No early settlement fees
  • Repayments are due when you earn, through your PDQ terminal – ideal for renovations or seasonal businesses
  • Merchant cash advance loans are quick to arrange and can often be deposited within five working days
  • Loans repayments are minimal on “bad” months with low turnover and higher repayments on good months

Cash advance business requirements

At Merchant Advice Service, we like to explain merchant finance in plain English so that you as business owners have the knowledge to choose the correct product for you. It’s important to know what most lenders require before deciding if PDQ merchant cash advance is right for you.

  • Must be a sole trader, partnership, LLP or limited business
  • At least 4 months’ card transaction history
  • Monthly takings through the terminal must be at least £2500

Frequently Asked Questions

What can PDQ merchant advance loans be used for?

The most common uses for this type of merchant finance are; refurbishments, equipment purchases, marketing and business growth. The funding needs to go towards business expenses only.

Can small businesses use a PDQ merchant cash advance?

Yes, merchant cash advance can be used for any size business as long as PDQ transactions reach at least £2500 per month. Also, at least four months’ worth of transaction history is usually required.

How long will it take to repay the loan?

The beauty of PDQ finance is that there is no fixed loan repayment term, higher payments will be taken when higher card sales are received. However, this is short-term finance and often repaid within a twelve-month period.

What are typical interest rates for a merchant cash advance?

As a rule of thumb, you tend repay between 20%-30% of the amount borrowed, however this does vary between each provider. Also bear in mind that the quicker you pay off the loan the smaller the rates payable will be.

How are the PDQ transaction splits taken?

The payments are taken automatically through an account which runs alongside your current merchant account. Merchant cash advance software, process every card sale taken and divert it to the account where the deduction is made. The rest of the transaction will be re-directed to your merchant account, then on to your bank provider, this usually takes 2-3 days.

Can I get a merchant cash advance if I have bad credit?

Depending on the severity of your adverse credit you could still be eligible for PDQ merchant cash advance. It’s worth understanding what adverse credit you have and when it took place. Our advisors deal with applications of this nature daily, so if you’re unsure pick up the phone and speak to us today. Different lenders have different policies so it’s important to speak to a broker that knows the lending criteria of a wide range of lenders.

Are there commercial finance lenders who have a no credit check policy when applying for merchant cash advance?

Yes! Often adverse credit (depending on the level) will not reduce your chances of getting accepted by some lenders. Your application will still be subject to underwriting, so it’s important to use an experienced advisor to package your application correctly.


Applying for merchant cash advance

Clients often worry about applying for merchant cash advance. Being a more specialist type of finance many people think of this option feel uncomfortable about the companies they are going to work with and look for recommendations and company reviews of the various cash advance providers. We advise our customers to use a broker who has access to a variety of lenders and deals with merchant finance applications on a daily basis.

At Merchant Advice Service, we specialise in PDQ merchant cash advance applications, our experts are at the end of the phone to answer any further questions you may have. Whether you are searching for a merchant cash advance for smaller business or look to finance up to £500 000, we can help in the following areas.

  • Restaurant and hospitality merchant cash advances
  • Merchant cash advance services for retail businesses
  • Merchant cash advances for new businesses
  • UK based and overseas lenders
  • Merchant cash advance loans don’t need to be complicated, to help you find the best merchant cash advance providers speak to our friendly experts today for a no obligation, free quotation.

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