Versatile alternative to a merchant cash advance

Retailers are moving on to more flexible forms of finance. Learn how your business can benefit from Spotcap’s unique approach to business finance.

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Don’t waste time with unnecessary forms and meetings.

For any purpose

Flexible, controllable funding, tailored to your specific needs.

Maximise ROI

Competitive rates and charges, with no hidden costs.

Peace of mind

Your application is processed promptly, rigorously and securely.

What is a merchant cash advance?

To release working capital, retailers and other businesses selling by credit card, make regular, small borrowings that are repaid by cash from future sales. This merchant cash advance can be a useful short-term funding solution.

An unsecured business loan from Spotcap offers similar flexibility to a merchant cash advance. It has the added benefit of not being tied to future income from retail sales.

A Spotcap loan arrangement allows you to draw down small amounts on a regular basis, as you would with a merchant cash advance. The advantages are that you’re not committed to drawing down a specific amount each time, and your repayments are not linked to your sales.

What is a merchant cash advance?

To release working capital, retailers and other businesses selling by credit card, make regular, small borrowings that are repaid by cash from future sales. This merchant cash advance can be a useful short-term funding solution.

An unsecured business loan from Spotcap offers similar flexibility to a merchant cash advance. It has the added benefit of not being tied to future income from retail sales.

A Spotcap loan arrangement allows you to draw down small amounts on a regular basis, as you would with a merchant cash advance. The advantages are that you’re not committed to drawing down a specific amount each time, and your repayments are not linked to your sales.

How can our finance replace a merchant cash advance?

Because it’s a form of credit typically linked to future sales income, a merchant cash advance is dependent on activity over which you have limited control - customer purchases. A Spotcap business loan removes this direct reliance on sales, giving you more control.

Applying for a loan from us is straightforward. The entire process is online, and comprises largely of uploading key financial reports. Once approved for a specific amount of credit, you have a commitment period in which you can choose to borrow as much or as little as you want, up to that limit.

Each borrowing becomes a business loan that’s typically repayable over 7 to 15 months. There’s no penalty should you choose to repay early. This means our loans are a versatile alternative to a merchant cash advance.

How could a Spotcap loan be your alternative to a merchant cash advance?

You can use the funds you borrow from us for a wide variety of purposes, such as:

  • Providing day-to-day working capital

    While your business is steady, or growing, your day-to-day bank balance is likely to be up and down. When it dips too low, perhaps into overdraft, you could have a problem. This is where a Spotcap business loan could be the solution.

  • Stocking your shelves

    It’s easier to sell stock that’s already on your shelves. Having access to extra capital means you can commit to purchases ahead of a busy sales period. A Spotcap loan also permits you to make early repayments, penalty-free.

  • Protecting your payroll

    You can’t afford for variations in working capital to prevent you paying your employees on time. While you can predict payroll payments, sales don’t always come in as you expect. Access to flexible short-term finance can help cover possible shortfalls.

  • Running a promotional campaign

    Because marketing is about investing to grow sales, you need the cash to pay for planning, design and advertising. Using a Spotcap loan rather than a form of borrowing linked directly to sales gives you more flexibility.

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Key facts about our merchant cash advance alternative

Take advantage of a different approach to business lending in the UK

Loan amount

We lend UK businesses between £10 and £150k for any commercial purpose.

Loan terms

Repayments are usually monthly, over 7 to 15 months. In the early months of the arrangement you choose how much of the loan to take.

Criteria to qualify

Spotcap business loans are available to firms with a minimum turnover of £250k, operating in the UK for at least 24 months and that have a UK bank account.

Interest rates

The interest rate on your business loan will reflect market conditions and your recent business performance. To estimate the interest rate and monthly repayments, use our repayment calculator.

Spotcap Loan repayment calculator

  • Amount
    £100,000
  • Time
    12 months

£9,340

Monthly Repayment

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For illustrative purposes only. The example shown above is based on 1.8% average monthly interest rate and 2.0% arrangement fee. The APR is . We base our decisions on several criteria and loans can only be granted to borrowers who can afford repayments. For more information about responsible lending click here or contact us directly.

Monthly Repayment

£9,340

  • Amount
    £100,000
  • Time
    12 months
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For illustrative purposes only. The example shown above is based on 1.8% average monthly interest rate and 2.0% arrangement fee. The APR is . We base our decisions on several criteria and loans can only be granted to borrowers who can afford repayments. For more information about responsible lending click here or contact us directly.

How to apply for your small business loan

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Sign up

Applying for a business loan begins by you giving us basic personal and business information via our online forms.

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Complete the application

Link your finance software or upload financial reports, along with bank statements, to complete the loan application.

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Get approval

Once approved, you’ll have access to your business loan within one working day.

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