Commercial Finance

Merchant Cash Advances Explained

2024-11-05 5 min read

A merchant cash advance (MCA) provides a lump sum of capital in exchange for a percentage of your future card payments. It's an unsecured, flexible funding option particularly suited to retail, hospitality and service businesses with strong card turnover.

How It Works

You receive a lump sum upfront. Repayments are taken automatically as a small percentage of your daily card transactions. When business is slow, you pay less. When it's busy, you pay more. There are no fixed monthly payments.

Who It's Suited For

  • • Restaurants, cafés and pubs
  • • Retail shops
  • • Salons and beauty businesses
  • • Any business with consistent card payments
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Frequently Asked Questions

How much can I borrow with an MCA?
Typically 1–1.5 times your average monthly card turnover, up to £500,000 for larger businesses.

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