Business cash advance vs business loan
Both give your business a lump sum, but they work very differently. Here's how they compare, so you can see which might suit your business.
PayZu is an introducer, not a lender or a broker. We introduce businesses to funding partners, who make all lending decisions. This guide is general information, not financial advice.
The short answer
A business cash advance is repaid as a share of your future card sales, so repayments rise and fall with your takings. A business loan is repaid in fixed monthly instalments over an agreed term. Cash advances suit businesses with steady card takings; loans suit businesses that want predictable repayments.
How a business cash advance works
- Through our partner: £10,000 to £500,000, up to 125% of your average monthly card takings.
- Repaid automatically as an agreed percentage of your daily card sales, typically 5–15%. You pay more when it's busy and less when it's quiet.
- One fixed fee agreed upfront, with no interest or APR.
- For UK businesses taking £10,000 or more a month in card payments and trading for at least 6 months.
- Decisions typically take 24–48 hours, subject to approval.
How a business loan works
- Through our lending partners: from £5,000 to £1,000,000.
- Repaid in fixed monthly instalments over an agreed term, with interest.
- For UK limited companies trading for 3 months or more with monthly turnover of £4,000 or more.
- The lender assesses your application and sets the terms. How long it takes depends on the amount.
Which might suit you?
- Most of your sales are by card and they vary through the year: a cash advance's flexible repayments may suit you.
- You want a fixed monthly cost and a set end date: a business loan may suit you.
- You need more than your card takings support: a business loan may offer larger amounts.
Not sure? Tell us what you need and we'll get you some options to choose from. All funding is subject to eligibility and approval by our partners.
What PayZu offers
- Debit card rates from 0.29%* (T&Cs apply)
- £0 upfront, zero hidden fees, zero PCI fees
- Next-day settlement as standard
*0.29% applies to UK consumer debit cards for businesses with monthly card takings above £40,000. Credit, business and international card rates, and rates for lower takings, are quoted individually. Subject to eligibility and status.
Related
Send your statement — let us beat it
Tell us about your business and we'll come back with a personalised rate. You can also email your statement to info@payzu.co.uk.
- Debit card rates from 0.29% (T&Cs apply)
- £0 upfront
- Zero hidden & PCI fees
- Next-day settlement