What is Merchant Funding?

Merchant Funding is a flexible alternative to a traditional bank loan as it gives you an advance on predicted credit / debit card sales. It’s most suitable for consumer-facing sectors such as outlets, retailers, restaurants, online merchants or businesses with card terminals and visibility on future payment streams; those that might need new furniture, equipment, stock or if you’re looking to refurbish. It’s great for those with seasonal peaks too such as business owners who are in the hospitality industry or more niche seasonal businesses like florists.


£3,500 - £500,000

Depending on historical sales and future payment streams.


Typically from three to nine months


30% - 70% (annualised) of advance

The cost will be based on either an agreed fee or a percentage of sales.

The information above shows the terms typically associated with merchant funding. Your terms will depend on your own situation.

Merchant Funding at a Glance

Repayments matched to cash-flow

With Merchant Funding you match repayments to your cash-flow i.e. you only make repayments when you receive card payments from your customers. You can typically borrow up to 100% of monthly card sales and it can be used to top up other funding sources e.g. invoice finance.

Credit Record

You do not need a perfect credit record to secure merchant funding but you will need to accept credit/debit cards.


Repayments are often made daily as a share of your sale, i.e. usually a small agreed percentage of daily or weekly card transactions until the revenue advance is paid off.

Personal Guarantees

A personal guarantee – an agreement that means a director takes on a certain level of personal responsibility for the debt through their own finances/assets - is often required when applying for merchant funding.

How to Get Merchant Funding

Ready to move forward on your business funding?
Compare quotes for your merchant funding

Get Funded
Or call us on 020 3695 9206 with your questions.