Fiducia TogetherMerchant cash advance
A lump sum repaid as a percentage of card takings. Fast, flexible and expensive.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
A merchant cash advance advances money against future card sales, repaid automatically as a fixed percentage of each day's takings.
Why it matters
Repayments flex with trading, which suits seasonal businesses. The cost, expressed as an annual rate, is usually far higher than a loan.
What it looks like in practice
Compare the total amount repayable against the amount advanced, and work out the effective annual cost over the expected repayment period.
What to watch out for
Rolling one advance into another, which compounds the cost and is a recognised distress pattern. And the effect on cash flow of a fixed percentage coming off every day's takings.
Where to get proper advice
An FCA-registered commercial finance broker, and your accountant on affordability. The British Business Bank's guidance is independent of any lender.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.