A Merchant Cash Advance (MCA) is a type of financing option designed for businesses that need quick access to capital. Unlike traditional loans that are based on creditworthiness and require lengthy approval processes, MCAs provide businesses with a lump sum of cash in exchange for a percentage of future credit card sales.
What is a Merchant Cash Advance?
An MCA is primarily aimed at small businesses with high credit/debit card transactions. The lender provides a lump sum to a business, repaid via an agreed percentage of daily credit card sales—creating a flexible repayment structure that aligns with cash flow.
What are the common uses for a merchant cash advance?
You can use a merchant cash advance for wide range of legitimate business purposes, including:
Purchase of stock
Premises refit or expansion
Large order funding
Regular cashflow
Paying VAT or tax bills
Marketing and new business programmes
Purchase of plant or office equipment
Types of businesses that can benefit from a Merchant Cash Advance
Restaurants and takeaways
Ecommerce stores.
Pubs and bars
Hotels
Hairdressers and beauty salons
Garages
Benefits of Merchant Cash Advances
Fast access to funds, often within 24–48 hours.
Flexible repayments that adapt to your sales volume.
Accessible even for businesses with lower credit scores.
No collateral required.
Frequently Asked Questions (FAQs)
What is a Merchant Cash Advance?
A Merchant Cash Advance is when a lender gives a business a lump sum in exchange for a portion of future credit card sales or fixed daily/weekly repayments.
How does a Merchant Cash Advance work?
The business receives a lump sum and repays it through a percentage of daily credit card sales until the advance plus fees are repaid.
Who can apply for an MCA?
Businesses that process credit card payments such as retail, restaurants, and service providers are eligible.
How much can I borrow?
It depends on your business’s revenue and card sales, usually ranging from a few thousand to hundreds of thousands of pounds.
What are typical repayment terms?
Repayment periods usually range from a few months up to a year, based on a percentage of your daily sales.
