Merchant Cash Advance | Card Terminal Loans | £5,000 – £500,000+
A merchant cash advance is business funding repaid as a small, agreed percentage of your future card sales rather than a fixed monthly instalment. Busy weeks repay more, quiet weeks repay less — which is why merchant loans suit retail, hospitality and any business whose takings move with the season. We arrange business cash advances from £5,000 to £500,000+ for UK limited companies through our specialist lender panel, with no upfront fees and no hidden costs. A card terminal loan and a merchant cash advance are the same product under two names.
As an FCA-authorised broker, we analyse your card terminal statements and use Open Banking to match you with the right MCA provider — giving you a decision in hours, not weeks.
How Businesses Use a Merchant Cash Advance
Three of the most common ways our clients put their merchant cash advance to work.
Funding for Shop, Restaurant & Bar Refurbishments
Give your premises a facelift to attract more footfall. Since the loan is paid back via card sales, it's the perfect way to fund the very upgrades that will increase your revenue. From new furniture and décor to a full refit, the advance pays for itself as customers walk through the door. Restaurants, pubs, salons, and independent retail shops are among the most common users of MCA-funded refurbishments.
Seasonal Stock & Inventory Purchases
Ramping up for Christmas, Summer, or a major local event? An MCA allows you to buy the stock you need today and pay it back as the customers swipe their cards at the till. No more choosing between stocking up and keeping the lights on. The beauty is that repayments automatically increase when sales are high and reduce when they dip — perfectly mirroring a seasonal business cycle.
Managing Cash Flow During Unexpected Downtime
Whether it's a quiet January or a period of roadworks outside your front door, the flexibility of a card terminal loan ensures you aren't crippled by high fixed costs when sales are temporarily lower. Pay less when you earn less—it's that simple.
How Do Card Terminal Loan Repayments Work?
Unlike traditional loans, there are no fixed monthly payments. Here's how it works:
You Take Card Payments
Your business processes card transactions as normal through your terminal.
A Small % Is Collected
A small, agreed percentage (typically 5–20%) of each day's card sales is automatically collected.
Quiet Days = Lower Payments
On slower days you pay less, on busy days you pay more. It flexes with your revenue.
Merchant Cash Advance Cost: A Worked Example
A merchant cash advance is priced with a factor rate, not an interest rate. Multiply the advance by the factor rate and that is the total you repay — it does not compound, and it does not change if repayment takes longer than expected.
Example: £20,000 advance at a 1.25 factor rate
- Advance: £20,000
- Factor rate: 1.25 — total repayable £25,000 (cost of funds £5,000)
- Monthly card takings: £30,000
- Agreed split: 12% of daily card sales, so roughly £3,600 collected per month
- Expected payback: about 7 months at that trading level — faster in a strong month, slower in a quiet one
How factor rates translate into total repayable
| Advance | Factor 1.15 | Factor 1.25 | Factor 1.35 |
|---|---|---|---|
| £10,000 | £11,500 | £12,500 | £13,500 |
| £25,000 | £28,750 | £31,250 | £33,750 |
| £50,000 | £57,500 | £62,500 | £67,500 |
| £100,000 | £115,000 | £125,000 | £135,000 |
Illustrative only. Your factor rate depends on card turnover, trading history and the lender. Because repayment flexes with sales, there is no fixed end date and no early settlement discount on most merchant cash advance agreements.
What You Need to Know Before Applying
The "No-Stress" Repayment Model
The biggest benefit of an MCA is that it isn't a 'debt' in the traditional sense—it's an advance on future earnings. There are no 'late fees' or 'missed payment' penalties because the repayment is automated. If you don't make a sale on a Tuesday, you don't make a repayment on a Tuesday. It's the ultimate peace-of-mind finance for high-street businesses.
Credit Scores Matter Less
Because the lender can see your real-time card processing data, they care much more about your recent sales history than a credit score from five years ago. This makes Card Terminal Loans one of the highest-approval products in our arsenal. If you've got consistent card takings over the last 6 months, you're a prime candidate for funding, even if your credit isn't perfect.
The "Factor Rate" vs. Interest Rate
MCAs don't use APR; they use a 'Factor Rate.' For example, a 1.2 factor rate means if you borrow £10,000, you pay back exactly £12,000. There are no compounding interest charges. Once that total is reached, the repayments stop. It's incredibly transparent, allowing you to calculate your exact profit margins before you even sign the deal.
Real MCA Funding in Action
How a YouLend Merchant Cash Advance Fueled a Falafel Cafe's Summer Prep
A busy falafel cafe secured a £23,000 YouLend renewal to bulk-buy stock, refresh their premises, and hire seasonal staff before the summer rush.
Eligibility Requirements
To qualify for our alternative business finance solutions, your business needs to meet these basic criteria
Quick Eligibility Check
UK Registered Company
Your business must be either a limited company, LLP, sole trader or partnership in the UK
Monthly Turnover £10k+
Minimum monthly turnover of £10,000 to qualify for funding
6+ Months Trading
At least 6 months of established trading history required
UK Resident Director
At least one director or shareholder must be a UK resident
Meet the criteria?
If your business meets these requirements, you could be eligible for funding despite bank declines
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Merchant Cash Advance Scenarios From the SME Finance Hub Desk
Three illustrative examples of businesses that used a Merchant Cash Advance — repaid as a small percentage of daily card takings rather than fixed monthly instalments.
Here's how this type of facility could work for a business in this position. These are illustrative examples, not specific client cases.
Hospitality refit ahead of summer
The type of business
An independent restaurant group with two sites averaging £35k/month in card takings, planning a £55k kitchen and front-of-house refurbishment ahead of summer.
What they needed
£50,000 to complete the refit during a 3-week February closure.
How it could be structured
MCA decisioned on 12 months of card-terminal data, repaid at 14% of daily card takings until settled.
Likely outcome
Refit completed on time. Summer trading was the strongest on record, accelerating MCA repayment to under 9 months from a planned 14.
Retail shop refit and stock combined
The type of business
A high-street fashion retailer averaging £42k/month in card sales, refreshing both the shop interior and the season's opening stock simultaneously.
What they needed
£70,000 split between shop fittings and pre-season inventory.
How it could be structured
MCA over an expected 12-month payback at 13% of daily takings. No fixed monthly minimum — repayment flexes purely with takings.
Likely outcome
Refit and new stock launched together drove a 31% uplift in average daily takings, naturally accelerating the MCA payoff.
Mobile trader takings advance
The type of business
A mobile coffee operator running 4 vans, taking £28k/month across portable card readers.
What they needed
£35,000 to add a fifth van and upgrade two of the existing units.
How it could be structured
MCA underwritten on the consolidated card-reader data across all 4 vans. Repayment via percentage of daily takings, pooled across the fleet.
Likely outcome
Fifth van on the road inside 5 weeks. Combined fleet takings rose 24%, with MCA repaying in 10 months without ever feeling like a fixed monthly drag.
Illustrative example. Rates, advance rates and timescales vary by lender and circumstances. For real, completed deals see our client success stories.
The Merchant Cash Advance structure shines for businesses with seasonal or unpredictable revenue — repayments naturally breathe with takings, so quiet weeks don't become missed payments.
Common Questions About Card Terminal Loans
Ready to Turn Card Sales Into Growth Capital?
No upfront fees. No fixed monthly repayments. Funding that flexes with your business.