Merchant Cash Advance UK
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: A merchant cash advance gives you a lump sum, often within a few days, then repays as a fixed percentage of your daily card takings until cleared. Quiet days cost less, busy days more, with no fixed monthly payment. Lenders read your card statements, not property. We place MCA for UK businesses that need working capital quickly, subject to approval.
A merchant cash advance gives you a lump sum today, then takes a fixed percentage of your daily card settlements until the total is repaid. That percentage is called the retrieval rate, and it is agreed upfront, typically 10 to 25 percent of daily card takings. There are no fixed monthly payments. A strong Saturday means the lender collects more; a quiet Tuesday means they collect less. The advance clears itself in line with your actual trading, which is either a feature or a drawback depending on how predictable your cash flow is.
The cost sits in the factor rate, not an interest rate. A factor rate of 1.3 means a £20,000 advance costs £26,000 in total repayment. We cannot tell you in advance what factor rate a specific lender will offer; that depends on your card revenue, how long you have been processing, and the lender's current appetite. What we can tell you is that 1.2 to 1.4 is the normal range for a well-established business, and anything above 1.5 is expensive enough that you should ask us whether a short-term unsecured loan works out cheaper.
Lenders base the offer on your card processing history, not property security. Most require at least six months of card terminal or payment gateway statements showing consistent revenue. The advance is normally sized at one to one-and-a-half times your average monthly card income. If you process £15,000 per month through your terminal, expect offers in the £15,000 to £22,500 range. Once the lender has your statements, a decision often follows within a day or two, and funds usually land within two to five working days after that.
MCA suits short-term working capital: restocking, covering a gap while an invoice clears, or bridging a seasonal dip. It is the wrong tool for long-term capital expenditure, where the true cost of a factor rate compounded over time would far exceed a fixed-rate loan.
Key Benefits
- Sized against your card revenue: lenders typically advance one to one-and-a-half times your average monthly card takings, so there is a direct link between what you turn over and what you can access
- No property security required: approval is based on card processing history, which matters when you are a leasehold business with no assets to charge
- Retrieval rate adjusts to your trading: on a slow day the lender takes less, so a quiet period does not trigger a missed payment
- The lender reads your terminal data rather than waiting for audited accounts or a business plan, so a decision usually comes quickly
- Factor rate is fixed at drawdown: unlike a variable-rate loan, the total repayment amount is known from day one even if the timeline is not
Frequently Asked Questions
How much can I borrow with a merchant cash advance?
Typically one to one-and-a-half times 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. The lender will look at the last three to six months of statements and use the lower average if your revenue is inconsistent.
What percentage of card sales goes to repayment?
Usually 10 to 25 percent of daily card settlements, agreed upfront as the retrieval rate. A lower retrieval rate stretches the repayment period; a higher one clears the advance faster but leaves you with a smaller share of each day's takings. We will tell you what the lender is proposing before you sign anything.
What is a factor rate and how does it compare to an interest rate?
A factor rate is a multiplier applied to the advance amount to give you the total repayment. A £10,000 advance at a factor rate of 1.3 means you repay £13,000 in total. It does not work like annual interest because the repayment period is variable. As a rough guide, a factor rate of 1.2 to 1.3 repaid over around twelve months sits in the region of 15 to 30 percent APR equivalent; 1.4 to 1.5 sits closer to 35 to 60 percent APR equivalent. The faster your card sales, the shorter the term and the higher the effective APR. Ask the lender for an APR illustration before signing.
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 is sized only on verifiable card revenue. Cash sales are not counted because the lender cannot collect from them automatically. Some providers will now include bank transfer and payment gateway income such as Stripe or PayPal alongside terminal data, which can increase the headline advance available.
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.
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Pubs, restaurants, cafes & hotels repay a merchant cash advance through card sales, not fixed monthly payments. We place these hospitality deals with providers who understand seasonal trade.
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Merchant cash advance by location
Lender appetite varies by city and region. If you would rather start from where your business is based, these local guides cover the same funding with the local picture.
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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.