The Growth Guarantee Scheme (GGS) is live - contact us today 01473 553 430
The Growth Guarantee Scheme (GGS) is live - contact us today 01473 553 430
Let’s face it – traditional finance is broken. Or at the very least, it’s too slow, too rigid, and too obsessed with credit scores to be useful to the average business owner who just needs cash, quickly, without the faff.
That’s why merchant finance has been gaining traction across the UK. It’s flexible, fast, and surprisingly fair. This form of funding is quietly becoming a go-to lifeline for UK businesses, particularly those that take the bulk of their payments by card.
But what exactly is merchant finance, and why are so many switched-on businesses turning to it? Let’s break it down.
Merchant finance, sometimes called a merchant cash advance, is a type of business funding that’s repaid directly through your card takings. You borrow a lump sum, then repay it through a fixed percentage of your future card sales.
It’s not a loan in the traditional sense, as there’s no fixed monthly repayment and no interest rate in the usual form. Instead, repayments flex with your turnover. Busy week? You pay more. Quiet month? You pay less.
For businesses that live and die by seasonality (retail, hospitality, salons, ecommerce), that flexibility is golden.
A few big trends are behind the rise:
1. We’re living in a card-first economy
The UK is now officially cash-light. In 2023, over 62% of all payments in the UK were made by card, up from just 55% in 2019.
That predictable, trackable income stream makes card-based lending models like merchant finance a no-brainer, especially for funders, who get repaid automatically.
2. Business owners need money yesterday
Inflation, supply chain dramas, rising wages, energy costs – you’ll likely have seen all of this yourself; modern businesses are constantly firefighting.
Merchant finance is quick, often landing in your account within 24–48 hours, all without you needing to complete 17 forms or remortgage your soul.
3. Repayments that actually make sense
Traditional loans don’t care how your week went. Merchant finance does. Because repayments rise and fall in line with your card takings, you’re never left panicking about covering a fixed repayment during a slow spell.
This isn’t just a lifeline for struggling shops (though it helps there too). Across the board, we’re seeing savvy business owners use merchant finance to:
– Buy stock before peak trading periods
– Upgrade premises without burning through reserves
– Invest in digital marketing and ecommerce fulfilment
– Smooth out seasonal dips in income
– Cover one-off costs like refurbishments or emergency repairs
Industries embracing merchant finance include:
– Independent retailers
– Cafés, restaurants and takeaways
– Hair and beauty salons
– Dentists and private clinics
– Ecommerce brands
Put simply, if you’re taking over £5,000/month in card payments, you could be eligible, and it could be a game-changer.
Sounds too good to be true, right? I won’t pretend that everything’s perfect. There are some things to be aware of when it comes to merchant finance:
– Costs can be higher than traditional loans, especially over the long term. It’s vital to understand the total repayment amount.
– Eligibility depends on card takings, not just your credit score.
– It’s not ideal for low-margin businesses that can’t afford to give up a percentage of every sale.
But with the right advice, the right lender, and a clear funding strategy, you can make merchant finance work hard to your advantage. It’s an incredibly useful tool, as long as you’re using it correctly.
At Jones & Co, we’re not here to flog finance for the sake of it. We work with business owners to build proper, practical funding strategies, whether that’s a merchant advance, a short-term loan, asset finance, or something else entirely.
We’ve helped countless clients use merchant finance to:
– Expand their operations
– Ride out seasonal slumps
– Increase marketing budgets
– Avoid missing out on growth opportunities
And because we’re independent brokers, not lenders, we’ll always tell you when a product isn’t right for you.
Look, it’s very easy to jump right into merchant finance as the benefits seem, at a glance, to far outweigh the negatives. But, as with all finance agreements, you need to be 100% sure that it’s right for you.
Sure, the future of business is looking fast, flexible, and personalised, but these are all BS buzzwords that finance folk like to throw about to make you feel more confident in your decisions.
The truth is this: used wisely, merchant finance can give your business the room to breathe, grow and invest, even when the banks say no.
Used recklessly, as with any finance, and you’ll find yourself in trouble. This is why businesses like yours turn to finance brokers just like us. Yes, we’ll help you find the funding you need, but we also act as advisors, guiding you through this complex (and frankly ridiculous) financial landscape we find ourselves in.
I’m here, alongside my handpicked team, to help you make these big decisions. Want to chat? You can get in touch using the details below:
At Jones & Co, we understand that every business is unique, and so are its financial needs.
That’s why we craft tailored finance solutions that enable businesses to thrive, no matter the challenge or opportunity.
With access to a vast network of trusted lenders, we’re here to simplify the process, offering straightforward, personalised guidance designed around you and your goals. Whether you’re looking to manage cash flow, invest in growth, or expand operations, our experts are ready to connect you with the ideal funding solution.
Contact our expert team today for a free, no-obligation consultation and take the first step toward business growth.
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