What is a Merchant Cash Advance (MCA)?

A Merchant Cash Advance (MCA) is a financial arrangement where a business receives a lump sum payment in exchange for a percentage of its future credit card sales. It’s a form of financing often used by small businesses with fluctuating revenue streams.
MCAs are commonly utilised by small businesses, particularly those with inconsistent cash flow.
  • Key Eligibility Criteria:
  • Accept card payments for 4+ months
  • Minimum 10 card transactions a month
  • Minimum £2500 average card takings per month
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Benefits at a glance

Fast Approval

Businesses can access much-needed capital quickly, often within a few days of approval. This agility allows businesses to seize immediate opportunities, address urgent needs, or navigate unforeseen challenges without delays.

Aligned To Cashflow

MCAs offer a repayment structure based on a fixed percentage of daily credit card sales. This adaptability aligns the repayment process with the natural ebb and flow of the business’s cash flow.

More Accessible

Unlike traditional loans that heavily rely on credit scores, MCAs consider the business’s card sales history and overall performance. This makes MCAs more accessible to businesses with diverse credit profiles.

  • Most common industries:
  • Retailers
  • Restaurants
  • Coffee Shops
  • Hotels
  • Pubs
  • Dental and Healthcare
  • Events

How a Merchant Cash Advance (MCA) works

A Merchant Cash Advance (MCA) is a swift financing solution for businesses. Here’s a concise breakdown:

    1. Application and Approval:
      • Apply with basic criteria, providing credit card processing and bank statements. Approval is based on credit card sales history and business performance.
    2. Offer and Funding:
      • Receive an offer detailing the advance amount, factor rate, and terms. Funding is quick, often within days, directly deposited into the business account.
    3. Repayment:
      • Repay through a fixed percentage of daily credit card sales. Flexible structure adjusts with business revenue, making it adaptable to fluctuations.
    4. Completion and Renewal:
        • Complete repayment when the total agreed-upon amount is reached.
        • Renew for additional funding based on business performance.

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