What is a Merchant Cash Advance?

This is a new type of lending in South Africa but one that should not be ignored if you make sales to customers that use a credit card. The amount loaned or advanced is calculated based on the average monthly turnover of your business. The amount loaned is then repaid over a term and the repayments are adjusted based on your monthly takings. So if you have a great month, you repay slightly more than normal and when you have a bad month you repay slightly less.



  • Very quick to access
  • Tailored to suit your cash flow
  • Assets are not tied up as security
  • Don’t need a great credit score
  • Not much documentation required


  • Expensive