Merchant Cash Advance
Unlock Tomorrow’s Revenue Today with Merchant Cash Advances
Merchant Cash Advances
Quick, flexible, and scalable, merchant cash advances have become a popular choice for UK hospitality, retail, and leisure businesses. By leveraging your card payment terminal, you can access unsecured funding—an ideal solution for businesses with limited assets but strong daily card transactions. Repayments are automatically taken as a percentage of your card revenue, easing cash flow concerns. Pay more when business is booming, and less during slower periods. It’s the perfect fit for many SMEs.
How do they work?
Any business that accepts payments through a card terminal may qualify for a Merchant Cash Advance (MCA). Since the lender collaborates directly with your card terminal provider—the company that processes your transactions—they have insight into the volume of card payments your business receives. This information helps the lender determine the amount they can offer and design a tailored repayment plan.
Because the loan and repayment plan are based on your business’s trading patterns and revenue, MCAs adapt to how your business operates. While the percentage of customer receipts allocated to repayment remains constant, the amount you repay daily, weekly, or monthly adjusts in line with your card payment income. This flexibility is especially beneficial for businesses with variable or seasonal income.
Merchant cash advances simplify the repayment process—you never need to worry about making payments manually. Repayments are taken ‘at source,’ meaning they are automatically sent to the lender by your card terminal provider.
The amount you can borrow depends on factors such as your card turnover and what the lender believes you can comfortably repay.
Testimonials
“British Business Funding transformed our cash flow management. As a retail store with fluctuating sales, a Merchant Cash Advance was the perfect solution. The fixed factor rate was clear and easy to understand, and the repayments adjusted seamlessly with our daily card transactions. We used the funds to expand our stock and renovate our store, which has significantly boosted our sales. The flexibility and simplicity of the MCA allowed us to focus on growth without the stress of traditional loan repayments. Highly recommended for any business looking for adaptable financing!”
We turned to British Business Funding for a Merchant Cash Advance when we needed quick capital for a major equipment purchase. The process was straightforward, and the fixed factor rate gave us a clear picture of our total repayment from the start. With repayments linked to our card sales, managing cash flow became much easier. We’ve already seen a return on our investment with increased efficiency and productivity. The flexibility to repay more during busy periods and less when things slow down has been a game-changer for our seasonal business. Excellent service and a great financing option for any business!
There are numerous merchant cash advance providers, and reaching out to each individually can be time-consuming. Let us handle the legwork for you. Leverage our lender network to find the best MCA or other funding solutions tailored to your business needs.
Get Started
Apply for a Merchant Cash Advance and unlock tomorrow’s revenue, today.
What are the alternatives to a merchant cash advance?
Funding via
Business loans
Funding (No PGs) via
Invoice Finance
Funding via
Business Credit Cards
Funding via
Revolving Credit
Funding via
Bridging Loans
Commonly Asked Questions About Merchant Cash Advances
What is a merchant cash advance and how does it work?
A merchant cash advance provides your business with upfront funding based on its future debit and credit card sales. Rather than making a fixed monthly repayment, an agreed percentage of your card takings is automatically used to repay the advance. This means you repay more during busy trading periods and less when card sales are lower.
Who is eligible for a merchant cash advance?
Merchant cash advances are primarily designed for UK businesses that take regular payments by debit or credit card, either through a card terminal or an online payment gateway. Retailers, restaurants, pubs, hotels, salons and other businesses with consistent card sales can be particularly well suited. Eligibility will depend on factors including your card turnover, trading history and overall financial position.
How much can I get with a merchant cash advance?
The amount available will usually be based largely on your business’s average monthly card turnover and trading performance. The finance provider will review your recent card receipts and determine an advance and repayment level that is appropriate for your business. Businesses with higher and more consistent card sales may be eligible for larger amounts.
How quickly can I get a merchant cash advance?
Merchant cash advances can be arranged quickly compared with many traditional forms of business funding. Depending on your card payment volume, profitability, credit profile and the information available to the lender, an offer may be available within 24 hours, with funding following shortly after approval.
What is the difference between a merchant cash advance and a business loan?
A traditional business loan normally involves borrowing a fixed amount and making agreed monthly repayments over a set period. With a merchant cash advance, repayments are instead linked to your actual card sales, so the amount repaid rises and falls with your revenue. This can make merchant cash advances particularly useful for businesses with seasonal or fluctuating income that want repayments to move in line with trading.