Merchant Cash Advance for Bad Credit UK

A merchant cash advance is built around one number: your card takings. The lender advances a lump sum and is repaid by taking an agreed percentage of every card payment your business processes, day by day, until the advance plus its fee is cleared. Because repayment is tied directly to sales, the thing the lender underwrites is the consistency of your card revenue, read straight from your merchant statements, not the credit file that would sink an unsecured application.

That is what makes it one of the more reachable products for an adverse profile. A CCJ or a default tells the lender about your past. Your terminal volumes tell it about your present ability to repay, and for this product the present carries the day. The advance is usually sized at roughly one month of card turnover, so a business processing forty thousand a month through its terminals might see an advance in that region, subject to the lender.

The honest part is the cost, and it is higher, more so with adverse credit. An MCA is priced with a factor rate, not an interest rate. Borrow twenty thousand at a factor of 1.3 and you repay twenty-six thousand, regardless of how quickly you clear it. There is no saving from early settlement in the way a loan gives you, and the effective annual cost can be steep. No broker can dress that up, and we will not try.

Repayment flexes with trade. In a strong month you clear more, in a quiet month you clear less, because the percentage is fixed but the takings are not. That built-in flexibility is part of why the product suits seasonal retail and hospitality. Directors are typically asked for a personal guarantee.

This is commercial finance for UK limited companies that take card payments. We are a broker, not a lender, so we cannot promise an advance or a rate. What we do is read your card volumes, match them to the MCA lenders with appetite, and set out the true cost before you commit.