Card machine loan repayments: what to expect
By Helm, Funding Specialist
- Repayments are a percentage of daily card machine sales
- Typical splits range from 10% to 25%
- No card sales = no repayment
- Most loans are fully repaid within 3 to 12 months
- There are no fixed monthly deadlines
The repayment structure is what makes card machine loans so attractive to business owners. Instead of fixed monthly payments that stay the same regardless of how your business is performing, repayments automatically adjust with your daily card revenue.
How the daily split works
When you agree to a card machine loan, you agree to a repayment percentage (the split). Each day, this percentage is deducted from your card machine settlements before the remainder reaches your bank account.
For example, with a 15% split: if you take £1,000 in card payments, £150 goes towards repayment and you receive £850.
Typical repayment percentages
The repayment percentage depends on the size of the advance relative to your card revenue.
| Advance Relative to Revenue | Typical Split | Impact on Cash Flow |
|---|---|---|
| Small (under 1x monthly) | 10% to 15% | Minimal impact |
| Medium (1x monthly) | 15% to 20% | Moderate impact |
| Large (1.5x monthly) | 20% to 25% | Noticeable impact |
How long does repayment take?
Repayment duration depends on your daily card volume and the split percentage. Most card machine loans are repaid within 3 to 12 months. There is no fixed end date. You simply keep making automatic daily payments until the total agreed amount has been repaid.
Holidays, weekends, and quiet days
On days when your card machine processes no transactions, no repayment is taken. This applies to days you are closed, bank holidays, and any day with zero card sales. This is one of the biggest advantages over fixed-payment products.
Managing your cash flow during repayment
To keep your cash flow healthy during repayment:
- Choose the lowest comfortable repayment percentage
- Time your advance to coincide with a busy period
- Keep a cash reserve for unexpected expenses
- Monitor your daily settlements to stay on top of your position
- Contact your provider if you are struggling
Frequently asked questions
Can I change the repayment percentage?
The percentage is typically fixed for the duration of the loan. If you are experiencing difficulty, speak to your provider.
Are repayments taken on weekends?
Only if you process card sales on weekends. No sales means no repayment.
What if I switch card machines during repayment?
You will need to inform your provider. They will set up the repayment split with your new processor.
Can I make a lump sum payment to finish early?
Some providers allow this. The total repayment amount usually stays the same regardless.