What is a merchant cash advance?
Date: 10/06/26
A merchant cash advance is a type of business finance that gives business owners quick access to some cash in exchange for a share of their future card sales. Repayments are taken as a percentage of a business’s income. In simple terms, this means when your business is busy you pay back more of the cash advance, and when you are quieter you pay back less.
Do merchant cash advances hurt your credit score?
A merchant cash advance does not typically hurt your credit score as the repayment process is based on your business’s sales rather than your credit history.
Therefore, the application process and receiving funding does not harm your credit score.
However, if you do not pay back the cash advance, your credit score could be indirectly impacted due to financial insecurity.
Do merchant cash advances have to be paid back?
The repayment of a cash advance is a fixed payment, and the amount does not change. This means it does need to be paid back.
However, as the cash advance works in line with your business, the repayment time depends on your business’s income.
Who offers them?
Multiple companies offer merchant cash advances; it is very easy to find out about different companies by doing a quick search online.
The average application process for a cash advance is very easy and simple. You apply online with details about your company and then you provide your most recent card processing statements.
Following this you are given a cash advance offer. Each company will take you through the process step by step.
What cash advance can you access as a Handepay customer?
As a Handepay customer you can access a merchant cash advance through YouLend. YouLend provides quick access to a cash advance through a very simple application.
To find out more about Handepay’s partnership with YouLend visit our business finance page here.
If you are interested in applying for a YouLend cash advance, follow the link to start an application here.
Available to existing Handepay merchants receiving acquiring services from an acquiring provider organised through Handepay who have not entered into any other agreement with third parties for the sale of their receivables. Eligibility criteria will apply. Business must be trading for 3 months or more, with a minimum of £3,000 in card transactions per month.
All Cash Advance applications are processed by the independent service provider, YouLend Limited. The cash advance is a sale of future card receivables, not a loan, and is not subject to the regulation and legal protections applicable to loans that are consumer credit or regulated mortgage contracts. Handepay’s activities in relation to the YouLend products do not constitute regulated credit broking.