A Merchant Cash Advance (MCA) is a form of financing where a business receives a lump sum payment but rather than repayment being a regular weekly or monthly amount, the lender takes a percentage of future credit or debit card sales. Here is how a Merchant Cash Advance works:

  1. Application: A business owner applies for a MCA by submitting an application. The application is supported by bank statements and credit card processing statements for the business.
  2. Approval: The MCA provider reviews the application and determines whether the business qualifies for funding. Approval can take as little as 24 hours.
  3. Funding: If approved, the MCA provider will offer the business a lump sum payment. This is usually based on the business’s average monthly credit and debit card sales. The payment is then deposited into the business’s bank account.
  4. Repayment: The MCA provider recoups the advance by taking a percentage of the business’s daily credit or debit card sales until the full amount, plus fees, is repaid. This is usually done automatically through the business’s credit card processing system, with a fixed percentage of each sale being deducted until the advance is fully repaid.

Flow chart to explain Merchant Cash Advance

Other Useful Information

When you apply for a Merchant Cash Advance, you will be allocated a Relationship Manager.  Your Relationship Manager will support you through the application process and continue to provide support after funding has been completed.

To make an application for a Merchant Cash Advance your business needs to meet the minimum requirements:

  • Have been trading for a minimum of 6 months
  • Have a minimum monthly card income of £10,000
  • You can apply for an advance of between £10,000 and £300,000 depending on your monthly card income.
Find out more

For more information about a Merchant Cash Advance and how it could help your business, book a call or request a quote.