Merchant Cash Advance

What is it?

Merchant cash advances (MCAs) are one of the most innovative products in alternative business finance. The concept has only existed for a few years, but it’s already proving very popular in the retail and leisure sectors. Put simply, an MCA uses your card terminal as security for borrowing — perfect for businesses without many assets, but who have a good volume of card transactions every month such as retailers and pubs/restaurants.

Repayments are taken directly from the terminal provider and are taken as a percentage of card takings, meaning it is perfect for seasonal businesses as you repay a percentage of sales as opposed to a fixed amount.

The benefits


Who we work with

A Selection of our  strategic finance partners


What does it Cost?

An MCA is charged through a factor rate which is essentially a multiplier of the loan. As an example, if you borrow £100,000 and the factor rate is 1.2 then over the term, you will pay back £120,000 (£100,000 * 1.2). The repayments are then taken as a % of card sales over a period of time – the % is fixed which estimates the term of the facility but the term is variable depending whether sales are more or less than anticipated.

Below is an example:

Monthly Card Sales £100,000
Loan £150,000
Factor Rate 1.2
Total Repayment £180,000
% repayment 15% (of monthly card sales)

In this example, 15% of card sales are taken (£15,000 per month) to repay the loan and the loan would be repaid back over 10 months.

Find out how we can help?

Providing bespoke, collaborative and expert funding advisory to business owners throughout the United Kingdom