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Page written by Ian Hawkins. Last reviewed on March 6, 2026. Next review due April 6, 2027.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
The term, or length of time, of a merchant cash advance can be affected by several factors, including:
The amount of funding: Typically, the higher the funding amount, the longer the term will be.
The repayment terms: Merchant cash advances are usually repaid through a fixed percentage of the business’s daily credit card sales. The percentage and the duration of the repayment period can affect the term of the advance.
The business’s creditworthiness: If the business has a strong credit score and financial history, it may qualify for a longer term.
The purpose of the advance: If the merchant cash advance is being used for a specific purpose, such as purchasing new equipment or expanding the business, the term may be longer to allow for a longer repayment period.
The lender’s policies: Different lenders have different policies and may offer different term lengths based on their risk assessment and business model.
To calculate your repayments for a merchant cash advance, you will need to know:
The amount of the advance: This is the total amount of funding you receive from the lender (£).
The factor rate: This is the multiplier that is applied to the amount of the advance to determine the total repayment amount. For example, if the factor rate is 1.2 and the advance amount is £10,000, the total repayment amount will be £12,000.
The holdback percentage: This is the percentage of your daily credit card sales that will be withheld by the lender to repay the advance. For example, if the holdback percentage is 10% and your business makes £1,000 in credit card sales in a day, £100 will be withheld and applied towards your repayment.
To calculate your daily repayment amount, you can use the following formula:
Daily Repayment = (Advance Amount x Factor Rate) ÷ Repayment Term
To calculate your holdback amount, you can use the following formula:
Holdback Amount = Daily Credit Card Sales x Holdback Percentage
Your total repayment amount will be the sum of your daily repayment amount and your holdback amount, and this will continue until the advance is fully repaid.
Swoop Finance Limited helps UK firms access business finance by working directly with businesses and their trusted advisors. We act as a credit broker, not a lender, and do not provide loans or finance products ourselves. We introduce applicants to a panel of lenders, equity funds, and grant agencies based on individual circumstances and creditworthiness.
Commission Disclosure: We typically receive a commission from the finance provider (either a fixed fee or a fixed percentage of the amount you receive) upon successful placement. Different providers pay different rates. For certain lenders, we may have influence over the interest rate, which can impact the total amount payable under your agreement.
Regulatory Information:
FCA: Authorised and regulated by the Financial Conduct Authority as a credit broker (FRN: 936513) and registered as an Account Information Services Provider (Ref: 833145).
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