Merchant Cash Advance

• UK-based businesses with regular card sales

• retail, hospitality, beauty, and service industries

• SMEs needing flexible, fast, and unsecured finance

• businesses with fluctuating income patterns

It may not be suitable for B2B businesses with high invoice volumes and few card transactions.

Lenders typically review:

• your average monthly card revenue (usually £2,000 minimum)

• trading history (usually 6–12 months)

• volume and consistency of transactions

• your business type and sector risk profile

• overall credit health (personal or business)

You don’t usually need a business plan or security to apply.

Merchant cash advances are usually based on card transactions and sales, either online or in-store. If your business works primarily with cash, feel free to get in touch with us by getting a quote here. Tell us a bit about your needs and we’ll see if we can find you anything suitable.

No, a merchant cash advance is not regulated by the Financial Conduct Authority (FCA). This reduced regulatory component can mean providers vary in the ways they work and the services they offer. 

It’s advisable to work with established businesses, and you might like to consider working with a broker like Funding Options by Tide. Our connections in the business finance industry are extensive – we work with over 120 lenders, so we’re confident in our ability to help you find the best fit for you.

The key figure is the factor rate (also called a “multiplier”). Here’s what you need to know:

Factor Rate: Multiply the amount advanced by the factor rate to find the total repayment.

Example: If you borrow £5,000 at a factor rate of 1.3, you’ll repay £6,500 in total.

No Strict APR: Unlike standard loans, MCAs don’t usually come with an APR. You’ll see an overall cost instead, calculated via the factor rate.

Because merchant cash advances aren’t tightly regulated by the FCA, costs can vary widely. Working with a reputable broker or merchant cash advance lenders with solid reputations can help you avoid hidden fees.

There is no strict repayment schedule with a merchant cash advance. Most are repaid within a few years and an MCA is usually considered a form of short term funding, but repayment can span longer. 

To calculate an estimate of how long an advance would take you to repay, start with the average revenue you receive in a month. If your income varies greatly, consider adding up your total revenue for the year and dividing by 12. 

Then, calculate the percentage of your revenue that you'll be paying to the lender. Calculate the total amount you'll have to repay, which is the amount advanced times the agreed multiplier. Divide this number by the average amount you'll repay as a percentage each month and you should arrive at the estimated number of months it will take you to repay the advance.

Yes, you can apply if you have bad credit. Merchant cash advances are usually based on revenue amounts, income, projections, and the likelihood of business growth, rather than credit scores, so if you have bad credit, an MCA could be a useful option for you. 

As with any funding solutions, there are several drawbacks to consider, including the following. 

Higher cost  

A merchant cash advance is usually more costly than a traditional loan. If you’re flexible, consider requesting a few possible quotes from a broker, like Funding Options by Tide. This could help you get an idea of what you may be able to get and for how much. 

Unregulated 

Merchant cash advances are not as regulated as more common forms of funding, such as business loans. Consider working with an established broker, like Funding Options by Tide. Check reviews and always read the terms very carefully before entering into an agreement. If in doubt, ask questions – a reputable provider shouldn't shy away from pressing questions. 

Regular repayments  

While repaying the advance as a percentage of revenue can help with cash flow, it can also become a hindrance if not budgeted for correctly. After all, you have access to less revenue, which can be a strain. 

Debt cycle 

Some business owners find themselves trapped in a debt cycle. This is when a business takes out funding to cover existing debts or ongoing expenses in a continuous cycle. The loans grow bigger and bigger, creating more of a strain on cash flow and eating into profits. Only consider taking out a merchant cash advance or another form of finance if you are confident in your ability to manage debt. 

If you’re specifically looking for merchant cash advance no-credit-check solutions, be aware these typically come with higher costs or stricter terms, and true “no credit check” products can be rare.

Figuring out which type of funding, which lender, and what terms you’d like to secure can be a tough battle. Is an MCA right for you, or is there something better out there for you? Something with better terms, better costs, and an easier repayment structure? Who should you trust? What would happen if you couldn’t meet your repayment obligations? These are all questions business owners can find themselves asking when seeking funding. 

Now, imagine there’s someone to hold your hand through all of this. Someone committed to looking after your best interests. Someone who has helped facilitate over £863,303,475 for more than 18,600 happy customers. 

Now imagine that that “someone” is a team of experts that have been referred to as, “The matchmaking website for small businesses and lenders,” by The Daily Telegraph. 

That “someone” is us – Funding Options by Tide, and our team of experts is here to help. Just submit your information here to get a quote and find out if you’re eligible for funding of up to £20 million.

It depends on your average monthly card sales—usually 50–150% of that figure.

No. Merchant cash advances are typically unsecured.

Your repayments adjust with your sales. You pay less when income is lower.

Many lenders run soft credit checks initially, but missed repayments can impact your score.