Merchant funding repayments: how they work
By Helm, Funding Specialist
- Repayments are a percentage of daily card sales
- Typical splits: 10% to 25%
- No sales = no repayment
- Most advances repaid in 3 to 12 months
- No fixed monthly deadlines
The repayment structure is what sets merchant funding apart from traditional lending. Instead of fixed monthly payments, repayments adjust automatically with your daily card revenue.
How daily repayments work
Each day, a fixed percentage of your card sales is deducted before the rest settles into your bank account.
| Daily Card Sales | 15% Split | You Receive |
|---|---|---|
| £500 | £75 | £425 |
| £1,000 | £150 | £850 |
| £2,000 | £300 | £1,700 |
| £0 (closed) | £0 | £0 |
Repayment timeline
Most merchant funding is repaid within 3 to 12 months. There is no fixed end date. Repayments continue until the agreed total is collected. Higher revenue means faster repayment.
What happens on quiet days?
If you process no card sales, no repayment is taken. This applies to closures, bank holidays, and any day with zero transactions. This built-in flexibility is one of the biggest advantages over fixed-payment products.
Frequently asked questions
Can I change the split percentage?
Typically fixed for the duration. Contact your provider if you are struggling.
Are weekend repayments taken?
Only if you process card sales on weekends.
What if my revenue drops significantly?
Repayments reduce automatically. You pay less during quieter periods.
Can I make lump sum payments?
Some providers allow this. The total amount usually stays the same.