Business Cash Advance

A Business Cash Advance (BCA) is a type of lending based on future revenue, calculated on your card takings. With Nucleus, you can borrow up to 125% of your monthly card volumes, from £3,000 to £150,000 and above. Read on to find out how a BCA from Nucleus could benefit your company.

What is a Business Cash Advance?

If your business takes card payments and needs a cash flow boost, then a Business Cash Advance (BCA) is the perfect solution. A Business Cash Advance – also known as a Merchant Cash Advance – is a type of lending based on future revenue and works like a business loan but with flexible – instead of fixed – monthly repayments.

With a standard business loan, you will receive a lump sum at the beginning of the term and continue to pay interest for as long as the amount is owed. This means that the total cost of the finance will vary depending on how long it takes you to pay the loan back.

The difference between a standard business loan and a BCA is that, with a Business Cash Advance, the total cost of finance is agreed upfront. Repayments are taken from your revenue, and as this method of repayment is proportional, you will pay back more when your revenue is higher and less when things are slower. The total cost of finance, however, does not change.

The funding can be used for any business purpose and is calculated on your business card takings. If you’re looking for the best Business Cash Advance loan, you’ve come to the right place. With our Business Cash Advance loans, you can borrow up to 125% of your monthly card volumes, from £3,000 to £150,000 and above.

We combine the stability of bank finance with the flexibility and speed of alternative lending platforms and continue to support growing companies with the finance they need to flourish.

How can BCA help?

Fast

Same day decision and funding, with a full packaged application.

Flexible

Tailored to your business. Your business only pays back what you can afford, with no fixed borrowing term.

Simple

Apply in minutes. Hassle-free repayments, calculated automatically.

Human

Dedicated account manager. We understand your business and how to help with growth.

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FAQ's

Yes. Both terms are often used interchangeably to describe the same business funding product.

If your application for a Business Cash Advance is approved, you could have the funds in your account within 24 hours.

To qualify for a Merchant Cash Advance, you will need to have been trading for at least four months.

Your Merchant ID Number is the number attached to your processing account (i.e. Lloyds/Barclays/Worldpay) and is used to identify your business for card payment processing. It is very similar to an account number on a bank account.

When you apply for a Merchant Cash Advance, you will come across the term ‘factor rate’. A factor rate is the multiplier to determine the price of your merchant loan. For example, if your factor rate is 1.4 on a loan of £10,000 over twelve months, you’ll pay back £14,000. It is a fixed price and does not fluctuate like interest rates.

When you apply for merchant finance for your business, the split % is the amount of card sales repaid to Nucleus, i.e. 20%. This means 20% of your customers’ daily card transactions will be sent to Nucleus’ bank account as repayment.

A card processer, or acquirer, is a company that provide businesses with card processing accounts/card terminals. Key examples include Worldpay, Lloyds/Cardnet, FDMS/First Data, Barclaycard, Elavon, HSBC/Global Payments, AIB.

After you have applied for a Business Cash Advance, the director or sole trader of the business will have to sign a Sales & Purchase Agreement (SPA), which states the terms of the agreement. By signing it, you will be providing confirmation that Nucleus will have control of your card receivables throughout the contract.

A guarantee & indemnity form is a contract that must be signed by you when you apply for your Business Cash Advance. By signing it, you are providing confirmation that if your business does not or cannot pay, you will personally guarantee any outstanding repayments.

A mandate form is a document that must be signed and completed for each Merchant ID Number (MID) by the customer. It instructs the card processor (i.e. Worldpay) to divert the card terminal revenue into the Trust Account.

Processing statements, also known as card statements or acquirer statements, are monthly breakdowns of the revenue coming through each Merchant ID Number. For example, October 2019’s statement may show you that your business took 20 transactions, which totalled £10,000.

If your business has multiple Merchant ID Numbers (MIDs), then they can sometimes be grouped together under the Head MID/HQ. Any MIDs that sit under the HQ/Head MID are called Outlets.

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