Merchant Funding

Type of funding?
Gives you an advance on predicted sales/ predicted credit card sales to provide a flexible way of raising finance. Allows you to match repayments to your cashflow
Who is this suitable for?
For outlets, retailers, restaurants, online merchants, or businesses with card terminals/ visibility on future payment streams. Can be used to top up funding from invoice finance. Also suitable if credit record is not spotless
What are the key terms?
The advance is either as an agreed fee or as a percentage of sales; repayments are often made daily as a share of your sales. Typical annualised cost of funding is 30-60% of advance
What are the key criteria to get funded?
  • Are typically in consumer-facing sectors (e.g., retail, restaurants), often with seasonal peaks
  • Some providers require the business to accept credit/debit cards
  • Have monthly sales of at least 100% of the funding sought
  • Do not need to have a perfect credit record
  • Can use merchant funding to top up other funding sources (e.g., invoice finance)
  • Given high costs of credit, less suitable for longer-term financing needs

Case Study


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How long
Time trading
Company type