Merchant Cash Advance UK
A merchant cash advance (MCA) gives your business a lump sum of capital repaid automatically through a small percentage of your daily card transactions. There are no fixed monthly payments. You pay more when sales are strong and less during quieter periods, but the total cost is typically higher than a fixed-rate business loan, so it suits short-term working capital rather than long-term financing.
MCAs are based on your card processing history, not property or personal guarantees. Most providers require 6+ months of card terminal statements showing consistent card revenue. Approval is fast (often 24 to 48 hours) and funds are available within days.
Key Benefits
- No fixed repayments, percentage of card sales only
- Approval based on card revenue, not credit score
- Funds available within 2-5 working days
- No property security or business assets required
Frequently Asked Questions
How much can I borrow with a merchant cash advance?
Typically 1-1.5x your average monthly card revenue. If you process £20,000 per month through card terminals, you could receive an advance of £20,000 to £30,000.
What percentage of card sales goes to repayment?
Typically 10-25% of daily card transactions. The exact percentage depends on the advance amount, your revenue, and the factor rate. A lower percentage means longer repayment but less impact on daily cash flow.
What is a factor rate?
MCAs use a factor rate (typically 1.2 to 1.5) instead of an interest rate. Multiply the advance by the factor rate to see total repayment. A £10,000 advance at 1.3 means you repay £13,000.
What is the effective APR equivalent?
Factor rates do not map cleanly to APR because the speed of repayment depends on your card sales. As a guide, a factor rate of 1.2 to 1.3 over twelve months sits in the region of 15 to 30 percent APR equivalent, and 1.4 to 1.5 sits closer to 35 to 60 percent APR equivalent. Faster sales shorten the term and raise the APR equivalent further. Ask the provider for an APR illustration before signing.
Can I get an MCA if I also take cash payments?
Yes, but the advance amount is based only on your verifiable card revenue. Some providers now also offer hybrid models that include bank transfer and online payment revenue.
Merchant Cash Advance calculator
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Total repayable
£62,500
Total cost
£12,500
Per month (approx)
£6,000
Est. months
10.4
Illustrative estimate only, not a quote or financial advice. A broker will confirm exact terms based on your circumstances and lender appetite.
Related Funding Options
Merchant Cash Advance for Retail Businesses
Fund stock purchases, store refits, and marketing with an MCA repaid through your card sales. Flexible finance for UK retailers.
Merchant Cash Advance for Hospitality
Flexible funding for UK pubs, restaurants, cafes, and hotels. Repay through a percentage of card sales with no fixed monthly payments.
Unsecured Business Loans UK
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.