Comparing Revenue-Based Finance and Merchant Cash Advance Providers in Ireland
Written by Team 365 Finance
Revenue-based finance and Merchant Cash Advances have become one of the fastest ways for Irish SMEs to access working capital without giving up security or waiting weeks for a decision. The shift makes sense: the Department of Finance’s 2025 SME Credit Demand Survey found that just 16% of Irish SMEs applied for bank finance last year, and 38% of those who did were asked for collateral, averaging 54% of the loan amount. But not every revenue-based or Merchant Cash Advance provider structures these products the same way, and the differences show up fast once you’re repaying. If you’re weighing up options, here’s what actually varies between providers, and how the category compares to a traditional bank loan.
Repayment Structure
Some providers still build in a fixed repayment period regardless of how your business is trading that month, closer to a bank loan’s fixed schedule than a true revenue-based structure. At 365 Finance, there’s no fixed repayment period. Your repayments flex with your sales, so a slower month doesn’t leave you stretched to meet a fixed direct debit.
How Repayments Are Collected
A standard direct debit doesn’t account for cash flow timing. We don’t use fixed direct debits. Instead, a small, consistent percentage of your card sales is collected as they come in, so repayment tracks your actual trading, not a date on a calendar.
Speed of Decision
Traditional lenders, banks included, can take weeks to come back with a decision. We offer a decision within 24 hours of receiving your application, based on how your business is actually trading rather than a lengthy underwriting process.
Speed of Funding
A fast decision means little if the money takes weeks to land. Once approved, funding is typically released within days, not weeks.
Cost Structure
Look for a single, fixed, all-inclusive fee agreed before funding is released, rather than the interest-plus-fees structure typical of a bank loan. That means no compounding interest, no admin charges, and no late fees to factor in later. If a provider’s cost structure needs a calculator to understand upfront, that’s worth questioning.
Who Is Actually Assessing Your Application
Some providers route Irish applications through underwriting teams based elsewhere, with limited understanding of the local market. Our underwriting team is based in Ireland, so decisions are made by people who understand Irish trading patterns, seasonality, and sector norms.
Security and Business Plans
Banks, and some revenue-based providers, still expect security or a business plan before they’ll fund you. We don’t require either to fund your business. Approval is based on trading performance and cash flow, not collateral.
Who You Talk to After You’re Funded
Support that’s outsourced or based in a different time zone can slow things down when you actually need an answer. Our customer service team is based in Ireland, so queries after funding are handled by people who are easy to reach and understand the Irish market.
How This Compares to a Bank Loan
Revenue-based finance and Merchant Cash Advance products sit apart from a bank loan on nearly every measure that matters day to day:
| Bank Loan | Revenue-Based Finance / MCA | |
|---|---|---|
| Cost | Interest over the loan term, plus arrangement and admin fees | Single fixed, all-inclusive fee agreed upfront |
| Repayment term | Fixed term, typically 1 to 7 years | No fixed term. Repaid as trading allows. |
| Repayments | Fixed monthly amount | Percentage of daily card sales |
| Security | Usually required | Not required |
| Paperwork | Business plan and projections usually required | Trading history and card sales data |
| Approval time | Typically weeks | Often within 24 hours |
| Funding speed | Usually weeks after approval | Within days of approval |
For a business that qualifies for both, the decision usually comes down to cost versus speed and flexibility. A bank loan can work out cheaper over the full term; revenue-based finance is built for businesses that can’t wait, can’t offer security, or want repayments that move with trading.
What to Ask Any Provider Before You Sign
- Is the repayment period fixed, or does it flex with sales?
- Are repayments collected by fixed direct debit or as a percentage of card takings?
- What is the total cost, and is it fixed upfront or variable?
- Is security or a business plan required?
- How long does approval typically take, and how long until funds land?
- Is there a named point of contact after funding, or does the relationship end at drawdown?
- Is the underwriting and customer service team based in Ireland, or handled elsewhere?
FAQs
Is revenue-based finance the same as a Merchant Cash Advance?
They’re closely related. A Merchant Cash Advance is a type of revenue-based finance, structured as an advance against future card sales and repaid as a percentage of daily takings. Some revenue-based products extend the same logic to broader sales or revenue data, not just card transactions.
Is revenue-based finance always more expensive than a bank loan?
Not necessarily, but it’s priced differently. A bank loan charges interest over time; revenue-based finance charges a single fixed fee. For a business that needs funds within days or can’t offer security, the comparison isn’t just about the headline cost.
Do I need a perfect credit history to qualify?
No. Most revenue-based and Merchant Cash Advance providers, including 365 Finance, weigh trading performance and card sales alongside a soft credit check, rather than relying on credit score alone.
The Bottom Line
Revenue-based finance and Merchant Cash Advance products can look similar on the surface, but repayment structure, cost transparency, and funding speed vary a lot between providers, and the category as a whole works differently to a bank loan. Comparing on these points before signing is the difference between funding that supports your business and funding that adds pressure to it.
See how 365 Finance’s approach compares: