Finance question
Can I refinance a merchant cash advance?
Yes. A merchant cash advance with its high cost and daily repayments can usually be refinanced into a cheaper, more manageable facility. Backing the new deal with an asset or property brings the rate down and replaces daily debits with a normal repayment.
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The short answer
Escape daily debits for something manageable
A merchant cash advance is quick to get but expensive to hold. It draws a slice of your takings every day, which strains cashflow and can trap a business in a cycle of taking another advance to cover the last. Refinancing replaces that debt with a facility priced and repaid on far more normal terms, so your daily takings stay in the business instead of being swept out.
Security is what makes the switch cheaper. Where you have an asset or property to lean on, the replacement facility can be priced well below the effective cost of an advance. Property-backed refinancing reaches single-digit rates, and even asset-secured lending across 40+ lenders is a different world from daily-repayment debt. The security is what convinces a lender to price the new facility at a fraction of the advance's true cost.
Getting out early protects the business. The longer an advance runs, the more it drains. We look at the payout figure, weigh the cost of clearing it now against carrying it, and place the refinance with the lender best suited to your security and profile, so the daily bite stops. Where more than one advance has stacked up, they can often be cleared together into the single new facility.
Do you qualify?
What makes an exit fundable.
The advance balance
The payout figure on the current advance.
Security to lean on
An asset or property to price the new facility keenly.
A viable business
Trading that a normal repayment can be built around.
An active ABN
Sole traders and companies both qualify.
Why refinancing an advance frees cashflow
Daily bite stops
A normal repayment replaces the slice taken from every day's takings.
Cheaper with security
An asset or property prices the new facility below an advance's cost.
Breaks the cycle
One cleaner facility ends the pattern of stacking advances.
A real example
A cafe took a merchant cash advance that now draws from its daily card takings and squeezes every week. Using equipment as security, the balance is refinanced into a facility with a single monthly repayment at a far lower cost, and the daily debits stop. Illustrative only.
Common questions
Frequently asked questions
Can any merchant cash advance be refinanced?
Most can, particularly where you have an asset or property to secure a cheaper facility. It is subject to lender assessment.
Why is the new facility cheaper?
Securing it against an asset or property prices it well below the effective cost of a daily-repayment advance.
Will the daily debits stop?
Yes. Refinancing replaces the daily draw with a normal repayment schedule.
Is there an upfront fee?
No upfront fee to you. The lender pays the broker on settlement.