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Business Cash Advance

Nucleus

Business Cash
Advance

Merchant ID Number- the number attached to a processing account (i.e. Lloyds/Barclays/Worldpay) it is similar to an account number on a bank account.

A factor is the multiplier to determine the price of the advance- for example a factor of 1.2= £10,000 x 1.2= £12,000. It is a fixed price and does not fluctuate like interest rates.

The split % is the amount of card sales repaid to Nucleus, i.e. 20%. This means 20% of the customers daily card transactions will be sent to Nucleus’s bank account for repayment.

Companies that provide businesses with card processing accounts/card terminals. The main ones are; Worldpay, Lloyds/Cardnet, FDMS/First Data, Barclaycard, Elavon, HSBC/Global Payments, AIB.

Sales & Purchase Agreement: states the terms of the agreement and is signed by the director/sole trader of the business, to confirm that Nucleus will have control of their card receivables throughout the contract.

This is the contract that the Personal Guarantees sign, which confirms that if the business does not/cannot pay they will personally guarantee any outstanding repayments.

A mandate form is signed and completed for each MID by the customer to instruct the card processor (i.e. Worldpay) to divert the card terminal revenue into the Trust Account.

These are monthly breakdowns of the revenue coming through each merchant ID number. For example, October 2017’s statement may show the business took 20 transactions which totalled £10,000.

If the business has multiple MIDs, then they can sometimes be grouped together under the Head MID/HQ. Any MIDs that sit under the HQ/Head MID are called Outlets.