Overview
Payment-linked financing is a flexible way to access working capital for your business. Unlike traditional loans with fixed monthly payments, repayments automatically adjust based on your daily sales through your payment processor. This means you pay more when business is strong and less during quieter periods.
How Payment-linked Financing Works
When you receive a payment-linked advance from SAPI, we agree on:
Advance amount – The capital you receive upfront
Total repayment amount – The amount you'll repay over time
Repayment percentage – The percentage of your daily card sales that goes toward repayment
Each day, a percentage of your card payments is automatically collected via Direct Debit. If you process £1,000 in card sales and your repayment percentage is 15%, we collect £150 that day. If sales drop to £500 the next day, collection drops to £75.
Key Differences from Traditional Loans
Fixed payments vs. flexible repayments
Traditional bank loans require the same payment every month regardless of sales. Payment-linked financing adjusts daily based on your actual revenue.
Factor rate vs. interest rate
Instead of annual percentage rates (APR), we use a simple factor rate. If you receive £10,000 with a factor rate of 1.25, you repay £12,500 total. The cost is fixed – you know exactly what you'll repay from day one.
Speed and simplicity
Applications typically process within 24-48 hours. We assess your payment processing history rather than relying primarily on traditional credit scores, making this accessible for businesses that might not qualify for bank loans.
Who Payment-linked Financing is Designed For
This financing model works best for businesses that:
Process regular card payments through a payment processor or acquirer
Have a consistent trading history (typically 12+ months)
Experience seasonal fluctuations or variable cash flow
Need working capital quickly for inventory, expansion, or operations
May not fit traditional lending criteria
SAPI specifically serves business owners who've been overlooked by conventional finance, including immigrant-owned and women-owned businesses.
Benefits of Payment-linked Financing
Cash flow aligned
Repayments automatically slow down during quiet periods and speed up when business is thriving. This protects your cash flow during challenging times.
Fast access to capital
Apply online, get a decision within 24-48 hours, and receive funds in 1-2 business days after acceptance.
Personal guarantees required
Personal guarantee(s) are required in most cases. Borrowers should seek independent financial and legal advice if unsure about any terms or obligations.
Use funds flexibly
Whether you need inventory, equipment, marketing, staff, or bridge cash flow gaps, you decide how to invest in your business.
What You Should Consider
Payment-linked financing may cost more than traditional bank loans, but it provides speed, flexibility, and accessibility that banks cannot offer. The factor rate is higher than typical interest rates because we take on additional risk and provide immediate capital without lengthy approval processes.
This financing works best when you:
- Need capital quickly (within days, not months)
- Benefit from flexible repayment that matches your sales rhythm
- Process significant card payment volume
- Can afford the repayment percentage based on typical sales
It may not be suitable if:
- You process very few card payments
- Your sales are highly unpredictable
- You need long-term (multi-year) financing at lower costs
Frequently Asked Questions
Q: Is this a loan?
A: It's a cash advance against your future card sales, not a traditional loan. Repayment is directly linked to your daily payment processing volume.
Q: What if I have no sales on a particular day?
A: If you process no card payments, we collect nothing that day. Repayment automatically resumes when you start processing payments again.
Q: Can I pay off the advance early?
A: Yes. You can settle the remaining balance early. Contact our team for your early settlement quote, which may include a discount on the remaining amount.
Q: Will this affect my credit score?
A: Payment-linked advances are typically reported to business credit agencies but not personal credit bureaus unless personal guarantees are required and default occurs. Your business's repayment performance may be shared with commercial credit reference agencies.
Q: How much can I borrow?
A: Advance amounts typically range from £10,000 to £250,000, depending on your payment processing history and business strength. Most businesses receive between £10,000 and £50,000.
Need More Help?
Ready to apply? Visit this link to apply or contact our team at [email protected] for guidance.
Need Help?
Email: [email protected]
Phone: +44 20 3868 4990
Business Hours: Monday-Friday, 9am-5pm GMT