Merchant Cash Advance
Table of Contents
What is it?
A Merchant Cash Advance (MCA) lets you borrow money based on your future card sales. Instead of a fixed monthly repayment, the lender takes a percentage of your daily or weekly card takings until the amount is paid back.
So when business is booming, you repay more. When things slow down, your repayments shrink too.
It’s a flexible option for retail, hospitality, salons, or any business that gets most of its income via card machines.
Pros and Cons
| Pros | Cons |
|---|---|
| ✅ Repayments flex with your sales – no fixed pressure | ⚠️ Can be more expensive than a traditional loan |
| ✅ No fixed term – it’s paid back as you trade | ⚠️ You need a steady flow of card payments to qualify |
| ✅ Quick access to funds (sometimes within 48 hours) | ⚠️ Only works if you take payments through a card terminal or online gateway |
| ✅ Doesn’t usually require business assets as security | ⚠️ Less transparency – rates and fees vary a lot between providers |
| ✅ Repayment fees may be tax-deductible as business expenses | ⚠️ Not ideal for low-margin businesses or seasonal slowdowns |
When is it a good fit?
A Merchant Cash Advance works well for:
- Businesses with strong and steady card sales
- Retail shops, restaurants, bars, salons, online stores, etc.
- Companies that want funding fast, with minimal paperwork
- Owners who don’t want fixed monthly repayments
Extra tips and things to consider
- MCA providers usually integrate with your card terminal or payment processor (e.g. Stripe, SumUp, Barclaycard, etc.).
- You don’t need assets, but you may still need a decent trading history.
- Fees and repayment percentages can vary a lot – always compare.
- Costs are often deductible as business expenses – ask your accountant what you can claim.
Still unsure?
Not sure if an MCA fits your business? We’ll help you work it out based on your sales and goals.
Try our [Finance Finder Tool] or give us a shout for a proper chat – no jargon, no pushy nonsense.