A Rare Merchant Funding Question

Added: 2026-05-25

[00:00:00]We've discussed merchant funding, so where a client potentially has a credit card terminal and you can set up a a facility to lend against their income through the credit card payments. So, what happens if they change provider?

[00:00:13]They can change their provider provided that they match it like for like or better than like. Okay, so effectively they're going to make sure they're not changing from a facility to a new facility that's actually either more expensive to run or more costly or has more onerous terms. So, for them it's all about making the change to make it better. That's all the competition.

[00:00:32]>> If they change their merchant services provider, is that allowed? It depends.

[00:00:36]It depends on the terms of their existing provider. Some have restriction clauses. You have to stay or give us X months notice. You can't just do a flip change. Some will actually have a restrictive covenant that says you can't do it.