Topping up a merchant cash advance essentially allows you to borrow more money. However it’s important to understand that the advance forms the basis of a brand new loan. The way it works is that the advance will be used to pay off the existing balance of your original loan, and you will have whatever is left deposited into your account to use continuing to grow your business.
So, for example, if your current loan has a balance of £3,000, getting a top up of £5,000 will see you receiving £2,000. If you want to make it simple – subtract the current balance of your loan from the total amount you wish to “top up”, and you’ll be left with what you’ll actually receive.
The amount the lender chooses to extend merchant cash advance terms will depend on how much more money you want to borrow, and over what period of time.