Merchant loan application process: step by step

If you have ever applied for a bank loan, you know how time-consuming and frustrating the process can be. Pages of forms, weeks of waiting, and often a rejection at the end. A merchant loan application is nothing like that.

Most applications take under 30 minutes, decisions come within hours, and funds can be in your account the next day. Here is exactly what to expect.

Step 1: Prepare your documents

Before you start your application, gather the following:

• Card processing statements for the last 3 to 6 months
• Business bank statements for the same period
• Photo ID (passport or driving licence)
• Proof of business address
• Details of your card terminal provider

Step 2: Submit your application

Most providers offer an online application form that takes 10 to 30 minutes to complete. You will be asked for basic business information, the amount you are looking to borrow, and to upload your supporting documents.

Some providers also offer open banking integration, which allows them to access your financial data instantly without the need for manual document uploads.

Step 3: Provider review

Once submitted, the provider reviews your card transaction data and business information. They are looking at your monthly card revenue, consistency of transactions, and overall business health.

This review typically takes between 1 and 24 hours. During this time, the provider may contact you to clarify any details or request additional information.

Step 4: Receive your offer

If approved, you will receive a formal offer detailing the advance amount, factor rate, total repayment amount, and repayment percentage. Review these terms carefully.

Pay particular attention to the total repayment amount and the daily repayment percentage. Make sure both are comfortable for your business.

Step 5: Sign and receive funds

Once you sign the agreement, the provider processes the funding. Most providers deposit funds into your business bank account within 1 to 2 business days.

Repayments begin automatically the next time you process card transactions after the funding is set up.

Application timeline summary

Here is a typical timeline for the full process.

Tips for a faster application

To get funded as quickly as possible:

• Have all documents ready before you start
• Apply early in the day for same-day review
• Use open banking if the provider offers it
• Respond to any follow-up questions immediately
• Sign the agreement as soon as you are happy with the terms

Frequently asked questions