Recovery loan scheme is live - contact us today 01473 553 430

What is Merchant Finance?

There are many reasons why your business may need a sudden injection of funding, from expanding your inventory to renovating your space. Business loans are not a decision to be taken lightly, and deciding which funding option is right for you can be overwhelming.

Whether you own a local high-street boutique or operate solely through e-commerce, merchant financing offers flexible terms and repayment options to suit your unique needs.

In this blog, our experts explore the benefits of merchant finance and how it differs from traditional funding options.

What is merchant card finance? 

Merchant card finance is a type of business loan tailored for companies that operate physically or online. 

What sets merchant card finance apart from traditional funding options is how repayments are collected. 

While conventional loans typically have fixed monthly payments, merchant financing often involves taking a percentage of customer card sales. 

This flexibility means that during slower periods, payments decrease to relieve cash flow. 

Another unique aspect of merchant card finance is that it doesn’t require collateral like assets and property. Instead, lenders look at a business’s transaction history and projected sales to determine the loan amount and terms.  

Compared to traditional options, merchant financing providers can offer approval with lengthy and time-consuming application and approval processes. This quick turnaround can be critical for retailers who need funds to take advantage of opportunities or address urgent needs.

solicitor pointing at a contract - business finance specialist Jones & Co

How to apply for merchant card finance  

Uncertainty about the application process is another aspect that can make securing funding overwhelming. 

At Jones & Co, we believe in a traditional approach, sitting down with you to discuss you, your business and your needs. Here is our process for finding the right merchant financing solution for you:

First, our specialists sit down with you to discuss your options. We will ask you to provide us with information about you and your business to help us provide tailored recommendations based on your specific needs. 

Using this information, we will create a bespoke solution for you, connecting you with the right lender to meet your financing needs.

To book your no-obligation quote today, don’t hesitate to contact a member of our team. 

Once your application has been approved, there are various ways merchant card finance can be utilised to support your growth and operational needs, including: 

  • • Inventory expansion 
  • • Equipment or technology upgrades 
  • • Marketing or promotion
  • • Renovating storefronts or upgrading online platforms 
  • • Operating expenses 
  • • Diversifying product offerings 
  • • Urgent circumstances such as equipment breakdowns or cash flow challenges


Merchant card finance offers businesses the flexibility to allocate funds where they are needed most, enabling you to invest in your growth or ensure resilience and stability during uncertain economic times.

What are the benefits of merchant card finance? 

Merchant card finance offers a range of benefits that can help your business to thrive and grow, including: 

Adaptable repayments 

Enjoy more flexible repayment terms based on your business’s sales cycles. Payments are tied to customer transactions, allowing you to manage cash flow more efficiently, especially during slower seasons.

Transparent terms and pricing 

Understand exactly what you’re getting into with clear terms and transparent pricing structures. This allows you to make informed financial decisions for your business in the future. 

Opportunities for businesses from all sectors

Merchant card finance offers funding solutions tailored to the size and goals of your business, no matter what your industry. Whether you are an independent florist or an online clothing retailer, merchant financing can help you accelerate your growth. 


What type of business is suitable for merchant card finance

When exploring potential avenues for business funding, it is important to know which options are appropriate for your business.   

If your business receives a substantial number of card transactions, either online or in-person, a merchant cash advance may be the best funding option for you. 

However, if your business operates on a cash-only basis or has prolonged off-season periods, then you may need to consider other funding solutions.

If you’re unsure whether merchant financing is the right option for your business, don’t hesitate to get in touch with our team today. 


Merchant Financing Solutions from Jones & Co

At Jones & Co, we understand the unique needs and challenges that SMEs face. With our traditional approach centred on you, we take the time to understand your goals and connect you with tailored funding solutions. 

Contact our team today, and let’s work together to find the perfect finance solution to meet your growth goals.


Finance in the news

View all news
Which Property Finance Option is Best for Me?

Whether you’re a seasoned property investor or a prospective homebuyer, the complexity and jargon of property finance can often seem daunting. However, each financing solution has its purpose and benefits, helping you one step closer to your property aspirations. 

In this blog, we unravel the various property finance options available, guiding you through the advantages of residential mortgages, buy-to-let investments, commercial loans, bridging finance and development funding.

Read more
Why Tax Funding can be Beneficial to SMEs and Sole Traders

Discover how SMEs can navigate tax obligation challenges and manage cash flow with versatile tax funding solutions from Jones & Co.

In this blog, our experts at Jones & Co delve into the various tax funding options that are available to SMEs and sole traders and the many business benefits.

Read more
Hard Asset Finance vs Soft Asset Finance – What’s the Difference?

In this blog post, we'll be exploring the key differences between two popular types of asset financing: hard asset finance and soft asset finance. So, whether you're a seasoned entrepreneur or a startup owner exploring business finance solutions, buckle up as we navigate through the nuances of these two essential concepts.

Read more
7 Benefits of Merchant Funding: Fuelling Business Growth

Merchant funding has become a valuable financial tool for businesses of all sizes, providing them with access to much-needed capital to support growth and expansion. Unlike traditional bank loans, merchant funding offers a range of benefits that make it an attractive option for business owners.

Read more
Debunking 7 Myths About Unsecured Business Finance

When it comes to financing your business, there's no shortage of options available. However, unsecured business finance is often misunderstood and surrounded by myths that can deter entrepreneurs from exploring this valuable funding avenue.

Read more