Merchant Cash Advance
What is a Merchant Cash Advance?
A Merchant Cash Advance (MCA) is a fast and flexible funding solution that provides businesses with immediate capital based on their daily card sales, not credit scores or collateral. It’s particularly suited to sectors like retail and hospitality, where card transactions are frequent. MCAs can be used for cash flow support, inventory purchases, marketing, or unexpected expenses. Repayments are made as a percentage of daily card sales, meaning the amount repaid adjusts with business performance, offering flexibility during slower trading periods.
Am I Eligible for a Merchant Cash Advance?
A Merchant Cash Advance (MCA) is typically available to businesses with a steady stream of credit card sales or other daily card payments. Lenders assess your sales history, business performance, and transaction volume. You do not need to offer collateral, but a strong sales record is essential to qualify.
How Much Can I Access Through a Merchant Cash Advance?
The amount available through a Merchant Cash Advance depends on your average monthly credit card sales. Typically, MCA lenders offer funding between £1,000 to £500,000. The advance is usually a percentage of your monthly card receipts, with lenders advancing a portion of your future sales.
How Fast Can I Get Funded Through a Merchant Cash Advance?
Once approved, Merchant Cash Advances can be funded quickly, often within 24–48 hours. The application process is streamlined and requires minimal paperwork, making it a fast solution for businesses needing immediate cash flow.
What Can a Merchant Cash Advance Be Used For?
A Merchant Cash Advance can be used for various business expenses, including purchasing inventory, paying for marketing campaigns, covering operational costs, or handling urgent cash flow gaps. It’s ideal for businesses that rely on daily credit card sales or receipts.
How Revenue-Based Finance repayments work
Agree fixed percentage
We agree a fixed percentage of your credit and debit card sales to repay the business cash advance (typically between 5% and 15% of your card sales).
Make card sales
You sell to your customers on your credit and debit card terminals as usual.
Repay automatically
The pre-agreed percentage is automatically deducted from your daily transactions at point of sale.
Receive money in your account
There is no change to the time it takes for you to receive the remaining money from your sales.
Reduce balance outstanding
The daily amount deducted reduces the balance outstanding on the cash advance.
Stop automatically
Collections stop automatically once the cash advance has been repaid in full.