Merchant cash advance
Funding that moves with your card takings.
Get an advance against your future card sales and repay a small share of each day’s takings. On quiet days you repay less; on busy days, more.
- Borrow
- Up to £750k
- linked to your card sales
- Repaid
- From card sales
- a set % of takings
- Cost
- Factor rate
- agreed up front
- Cost to check
- £0
Ranges reflect lenders on our panel. What you’re offered, and the cost, depends on your business and the lender.
Good for
- Restaurants, cafés, bars and retailers taking card payments
- Businesses with seasonal or uneven sales
- Businesses that want repayments to flex with trade
- Owners whose credit history rules out some loans
How it works
- 1
Share your card sales
Lenders look at recent card-terminal statements to understand your typical takings.
- 2
Agree the advance
You receive a lump sum and agree a fixed total to repay, set by a factor rate.
- 3
Repay as you trade
A small percentage of each card sale goes to the lender until the total is repaid.
- 4
Finish and renew
When it’s repaid, many lenders offer a further advance if trading has been steady.
Costs and trade-offs
What it costs, honestly.
How it’s priced
Instead of interest, a merchant cash advance has a factor rate. For example, a factor rate of 1.2 on £20,000 means repaying £24,000 in total. Because repayment depends on sales, there’s no fixed end date. The faster you trade, the sooner it’s repaid, which also makes the effective annual cost higher. Use our quote checker to compare a factor rate with a loan’s APR.
Check the true cost of a quoteWhy people choose it
- Repayments flex with your sales
- Decisions focus on trading rather than credit score
- No fixed monthly payment to find in a quiet month
Worth knowing
- Can cost more than a term loan once you account for how quickly it’s repaid
- Only suits businesses with regular card takings
- You usually can’t save by repaying early, as the total is fixed
What lenders usually look for
Every lender is different. If you don’t tick every box, talk to us anyway: part of our job is knowing who might say yes.
- Regular card takings, often from about £3,500 a month
- Trading for at least 6 months
- Card-terminal statements, or a lender-approved card machine
- Some lenders don’t accept every card provider; your adviser will check
What is a factor rate?
The multiple you repay on what you borrow, agreed at the start. Borrow £10,000 at a factor rate of 1.25 and you repay £12,500 in total. It isn’t an annual interest rate, so compare offers using the total repayable, or our quote checker.
What happens if my card sales drop?
Because you repay a percentage of takings, repayments fall when sales fall. The total you owe doesn’t change; it just takes longer to repay.
Is a merchant cash advance a loan?
Technically it’s the purchase of a share of your future card sales, not a loan, which is why it’s priced differently. In practice it works like flexible funding, and we explain the terms just as clearly.
Other routes
You might also consider
- Unsecured business loansAn unsecured loan isn’t tied to your premises, home or equipment. We’ll help you understand what lenders ask for instead, and find the ones that suit your business.
- Revolving creditA revolving credit facility gives your business a set limit. Draw what you need, repay it, and the funds are there again next time.
- Short-term loansA short-term loan is repaid over months rather than years. It suits a specific need with a clear end, such as stock for a busy season or a gap before a contract pays.
Your next move starts with a clearer view.
Tell us what you need. We'll show you the routes that fit your business and help you take the next step.