Merchant cash advance
A lump sum for UK businesses that take card payments, repaid as a fixed percentage of each day's card takings. One total agreed before you sign, no fixed monthly repayment, funded directly by us.
How a merchant cash advance works
We advance a lump sum, typically around one month of your card takings, and in return collect a fixed percentage of each day's card settlements until an agreed total is reached. The collection happens automatically through your card terminal provider: on a £2,000 Saturday 12% is £240; on a £600 Tuesday it's £72. Trade quietly and the advance takes longer to clear; trade well and it clears sooner. There's no interest rate, no fixed term and no fixed monthly bill, which is why most owners who've had one once use it again for the next stock order, refit or tax bill.
Legally it isn't a loan. A funder buys a fixed amount of your future card receipts at an agreed price, which is why the cost is expressed as a factor rate rather than an APR. £30,000 at 1.25 means £37,500 to repay in total; the £7,500 is the whole cost and it doesn't change if repayment takes longer than expected.
How it works
Four steps, with the timings we actually work to.
Apply online
Business name, what you do, roughly what goes through the till, the amount and what it's for. No credit search at this stage.
A specialist calls you back
Confirms it's a fit, tells you which product suits the numbers and what it would typically cost. If it isn't a fit, you hear that now.
Decision in writing
Send six months of bank statements (open banking takes under a minute), card statements if you take cards, and photo ID. The offer shows the amount, the total to repay and how it's collected.
Funds in your account
E-sign, and the money goes to the business account. Repayments start as agreed.
| Monthly card takings | £22,000 |
| Advance | £15,000 |
| Factor rate | 1.25 |
| Total to repay | £18,750 |
| Cost of funding | £3,750 |
| Collected as | 12% of daily card takings |
| £1,100 card day | £132 remitted |
| £500 card day | £60 remitted |
| Cleared in about | 7 months at these takings |
Illustrative figures using typical market terms; not a real customer. Your offer depends on your trading and our assessment.
Eligibility
- UK limited company or LLP
- Trading six months or more
- £10,000 or more a month through the card machine
- A UK business bank account
- A director who can provide photo ID and six months of bank and card statements
- Sole traders and partnerships: options are limited; ask and we'll be straight with you
- Businesses in insolvency or administration, or with an unresolved CCJ
- Sectors we can't fund are on the restricted industries page
Merchant cash advance vs business loan
| Merchant cash advance | Unsecured business loan | |
|---|---|---|
| Repayment | Percentage of daily card takings; flexes with trade | Fixed monthly or weekly amount |
| Cost | Factor rate, one fixed total | Interest rate or flat monthly cost, fixed total |
| Term | No fixed end date; typically 4 to 12 months | Fixed, 6 to 36 months |
| Decision based on | Card takings and recent trading | Bank turnover, accounts and credit profile |
| Best for | Seasonal or card-heavy trade, short-term needs | Predictable budgeting, longer-term investment |
| Security | Unsecured; director's personal guarantee usual | Unsecured; director's personal guarantee usual |
What owners use it for
Personal guarantees and your credit score
Two questions every owner should ask and most pages avoid. First: yes, a director's personal guarantee is standard on a merchant cash advance, as it is across unsecured UK business finance. It means that if the company can't repay, the director is responsible. There is no charge on your home and no asset security, but the guarantee is real and you should read it. Second: applying does not affect your credit score. Our enquiry form runs no search at all, and the assessment is based on your trading. A search may be run at the offer stage with your consent, and we tell you before that happens.
A direct lender, in plain terms
Our own underwriters. Your file isn't sold on to a panel or passed around a market; the people who assess it are the people who fund it.
The total on your offer, nothing before funds are released. No application fee, no broker commission built into your price.
Finance to UK limited companies and LLPs for business purposes is not regulated consumer credit. The legal name of the funding entity is on every offer document.
Questions about merchant cash advance
How much can I borrow with a merchant cash advance?
Typically around one month of card takings, from £5,000 to £500,000. A café taking £20,000 a month through the terminal would usually be looking at £15,000 to £25,000; a retailer taking £120,000 might see £100,000 to £150,000.
What does a merchant cash advance cost?
A factor rate, usually between 1.15 and 1.35 depending on trading history and term. £20,000 at 1.25 means £25,000 to repay in total. The cost is fixed on day one and doesn't grow if repayment takes longer.
Is there a fixed monthly repayment?
No. A set percentage of each day's card takings, typically 10% to 15%, is remitted automatically. Busy days repay more, quiet days less. There is no monthly bill and no fixed end date.
How quickly can I get the money?
Decisions in as little as 3 hours once statements and ID are in, and funds in as little as 24 hours after signing. Most delays are documents arriving late.
Can I repay early?
Yes. Because the total is fixed, repaying early simply means you reach it sooner. We'll tell you before you sign whether an early-settlement discount applies to your offer.
Do I need a personal guarantee?
Usually, yes, from a director. It's standard across UK business funding. There's no charge on property.
Will applying affect my credit score?
No. The enquiry runs no credit search. Any search at offer stage is done with your consent, and we tell you first.
Can I get a second advance while one is running?
Once a portion is repaid and your takings support it, you can top up. We can also consolidate advances held elsewhere into one facility, which usually means less coming out each day.
I'm a sole trader. Can I apply?
Options are limited: lending to sole traders below £25,000 is regulated consumer credit, which we don't offer. If you incorporate, come back.
What documents do I need?
Six months of business bank statements (open banking or PDF), six months of card terminal statements from Worldpay, Dojo, Square, SumUp, Zettle or whoever runs your terminal, and photo ID for a director. No business plan, no accounts.
Other ways we fund UK businesses
See what your business could be offered
Two minutes to tell us about the business. A funding specialist calls you back, usually the same working day, with a straight answer.