A merchant cash advance (MCA) is a flexible alternative to a traditional business loan. Instead of fixed monthly repayments, you repay a small percentage of each card transaction until the agreed total is settled.
How the numbers work
Say you borrow £10,000 at a "factor rate" of 1.2 — that means you'll repay £12,000 in total.
If you agree a 12% retrieval rate, then 12p of every £1 in card takings goes towards the repayment. A business doing £50k/month in card sales would clear it in roughly 2 months.
When it works
- Seasonal businesses that don't want fixed monthly direct debits
- Retailers and restaurants with steady card volume
- Quick top-ups (most clients can re-borrow once 50% repaid)
When it doesn't
- If you have very low card volume
- If you can qualify for a cheap term loan and have stable cash flow
Apply online or speak to our payments team for a no-obligation quote.