What is Merchant Funding?

A flexible alternative to a bank loan offering an advance on predicted credit / debit card sales.

Merchant Funding allows advances on credit and debit card sales

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.

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.

Your Resources

SME Funding Guide - Understand your options

Produced in association with our partners at KPMG Small Business Accounting.

Case studies – How we’ve helped

How Funding Xchange helps businesses access the finance they need on the best terms.

More questions? Get in touch

Call us on 020 3695 3206 or email for help researching your business funding.

Ready to move forward on your business funding?

See indicative quotes for Merchant Finance in minutes…