Repaid from your card takings
Merchant Cash Advance
A merchant cash advance (MCA) is funding repaid as a fixed percentage of your future card sales, rather than in fixed monthly instalments. When you take more, you repay faster. In quieter weeks, you repay less. You agree the total repayable upfront.
Funding Plus compares merchant cash advances from UK providers so you can see the real cost, and check whether a loan would be cheaper.
- Repayments flex with your sales
- No fixed monthly payment
- Based on card takings, not credit score
Reviewed by the Funding Plus team · Last updated October 2026
Step 1 of 3 · Merchant Cash Advances
How much do you need?
Takes about a minute. No impact on your credit score.
Merchant Cash Advances at a Glance
- Amounts
- £5k – £500k
- Repayment
- 5% – 20% of card sales
- Decision
- 1 – 5 days
- Security
- None
- Best for
- Card-taking businesses
Typical figures across the market. Your offers depend on your business, the lender and the security available.
How Merchant Cash Advances Work
- 1Share your card takingsProviders look at your last 3 to 12 months of card sales.
- 2Get an offerAn advance amount, a total repayable and a percentage of each card sale.
- 3Receive the advanceThe money is paid into your account, often within days.
- 4Repay as you tradeA share of each card payment goes to the provider until the agreed total is repaid.
How Much Do Merchant Cash Advances Cost?
An MCA is priced with a factor rate rather than an interest rate. A factor rate of 1.2 means you repay £1.20 for every £1 advanced. Because you may repay quickly, the effective annual cost can be much higher than a loan, so always compare the total repayable.
- A factor rate, typically 1.1 to 1.5
- The total repayable is fixed upfront
- No interest builds up, however long repayment takes
- Faster sales mean a higher effective annual cost
Worked example
A £30,000 advance at a 1.2 factor rate
- Advance
- £30,000
- Factor rate
- 1.2
- Total repayable
- £36,000
- Cost of the advance
- £6,000
- Repaid from card sales of £60,000 a month at 15%
- £9,000 a month
- Estimated time to repay
- About 4 months
Illustrative only, not a quote. Repayment time depends on your actual card takings.
Who Can Get Merchant Cash Advances?
- A UK business taking card payments
- Usually 3 to 6 months of card takings
- Card sales of at least £3,000 to £5,000 a month
- A card terminal provider the MCA provider can work with
- Credit history is considered but matters less than sales
What You'll Need to Apply
- Card terminal statements for the last 3 to 12 months
- Business bank statements
- Director ID
Pros and Cons of Merchant Cash Advances
Advantages
- Repayments fall when sales are slow
- No fixed monthly payment
- Fast decisions and payouts
- Available with weaker credit
Things to watch
- Usually more expensive than a business loan
- Fast trading makes the effective cost higher
- Only works if you take card payments
- Most MCAs aren't regulated by the FCA
How Repayments Are Collected
Split from your card terminal
Your terminal provider sends the agreed share of each sale to the MCA provider.
Fixed daily or weekly sweep
A set amount is taken from your bank account, adjusted to your average sales.
Revenue-based finance
A similar product for online businesses, repaid from all revenue.
See revenue-based financeMerchant Cash Advances vs Other Options
| Option | Best for | Typical speed | Security |
|---|---|---|---|
| Merchant cash advance | Card-taking businesses with uneven sales | 1 – 5 days | None |
| Unsecured business loan | Lower cost if income is steady | 1 – 5 days | None (guarantee usual) |
| Business line of credit | Repeat short-term needs | Days | Usually none |
| Revenue-based finance | Online businesses | Days | None |
Who Uses Merchant Cash Advances?
Merchant cash advances suit businesses where most sales go through a card machine.
Customer story
“[Real customer story for Merchant Cash Advances: what they needed, how quickly it was arranged and what it let them do.]”
[Name], [Role], [Business name] · [Amount] merchant cash advance
Merchant Cash Advances FAQs
Is a merchant cash advance a loan?
Technically no. It's the sale of a share of your future card takings. That's why most MCAs aren't regulated by the FCA and are priced with a factor rate.
What happens if my sales drop?
You repay less each day, because repayments are a percentage of sales. It takes longer to repay, but the total doesn't increase.
How much can I get?
Usually up to around one to one-and-a-half times your average monthly card takings.
Can I get an MCA with bad credit?
Often yes. Providers focus on your card sales history more than your credit score.
Is an MCA more expensive than a loan?
Usually, especially if you repay quickly. Compare the total repayable with a loan before deciding.
Related Guides
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