Revenue-linked funding
Merchant Cash Advance for Private Dental and Aesthetic Practices
Advance against future card takings, repaid as an agreed percentage of each day’s settlement. Quiet months cost less; there is no fixed monthly instalment to meet.
The proposition
Repayment that flexes with the appointment book
A merchant cash advance is not a loan with a fixed schedule. The funder advances an agreed sum and recovers it by taking a set percentage of every card transaction until the total is repaid. August and Christmas cost less because takings are lower; a strong autumn clears the balance sooner.
For private practices, aesthetic clinics and veterinary surgeries where the majority of income arrives by card, that alignment removes the single biggest risk in short-term borrowing — a fixed instalment falling due in a quiet month.
It is priced as a single fixed cost of capital agreed at the outset, not a running interest rate. You know the total repayable on day one, and it does not increase if the payback takes longer than expected.
Where it fits
Best used for short, self-liquidating spend
An advance works hardest where the money buys something that lifts card income inside the payback window. Used that way, the facility largely funds its own repayment.
It is a poor fit for long-life capital spend. A scanner belongs on asset finance over five years, not on a nine-month advance — and we will tell you so.
- Marketing pushes for implant, aligner or facial aesthetic treatment lines
- Stock and consumables ahead of a busy treatment season
- Covering a VAT or tax bill without disturbing the overdraft
- Bridging the gap while an associate builds a list
- Small refurbishments that increase chair or room capacity
- Emergency plant replacement where downtime is costing surgery hours
Client outcomes
What principals value about it
No charge over assets
Advances are unsecured against property. Premises and goodwill stay clear for a mortgage or acquisition later.
Speed when it matters
Underwriting reads merchant statements rather than filed accounts, so funding within 48 to 72 hours is routine.
Cost known upfront
A single agreed cost of capital, expressed in pounds. No compounding, no variable rate, no penalty if takings slow.
At a glance
Indicative terms
- Advance size
- Typically 80% to 150% of an average month’s card takings, from £5,000 to £500,000.
- Repayment
- A fixed percentage of daily card settlement, commonly 8% to 20%, deducted automatically.
- Payback period
- Usually 6 to 12 months, driven by trading rather than a fixed end date.
- Trading history
- Around 4 to 6 months of card processing history and a minimum monthly card volume.
- Security
- Unsecured. A personal guarantee is common on limited company advances.
- Top-ups
- Most funders allow a further advance once roughly 60% to 70% of the original is repaid.
Related funding lines
Questions
Merchant Cash Advance — frequently asked questions
A loan has a fixed monthly instalment and a fixed end date. An advance has neither: you repay a percentage of card takings until the agreed total is cleared, so the amount moves with trading and the end date moves with it.
That flexibility costs more than a comparable term loan on an annualised basis. For short, self-liquidating spend it is often the better trade; for anything over twelve months it usually is not.
No. The split is handled between the funder and your merchant acquirer at settlement. Patients see nothing different, terminals do not change, and in most cases you can keep your existing acquirer and rates.
You pay proportionately less, and the payback period lengthens. There is no arrears position and no penalty, because there is no fixed instalment to miss. That is the core protection the product offers over conventional short-term lending.
Next step
See what your card takings support
Three to six months of merchant statements is enough for an indicative advance figure and the exact total repayable, usually the same working day.
Prefer to write? Send an enquiry or email info@apexfundingpartners.co.uk.