Merchant cash advances usually do not require property security, although lenders may require a personal guarantee.
Merchant Cash Advance
Flexible funding repaid through your business card sales
A Merchant Cash Advance (MCA) provides fast access to working capital for businesses that take payments by debit or credit card. Instead of fixed monthly repayments, the advance is repaid automatically as a percentage of your daily card takings, making it a flexible solution that adjusts to your revenue.
At Bothwick Finance, we arrange merchant cash advance facilities for UK businesses looking for quick, straightforward funding without the rigidity of traditional loans.
What is a merchant cash advance?
A merchant cash advance is not a conventional loan. It is an advance against your future card sales, repaid through a small, agreed percentage of each transaction processed through your card terminals or payment systems.
Because repayments are linked directly to your sales, the amount you repay varies from day to day:
This structure can be particularly helpful for businesses with fluctuating income or seasonal trading patterns.
How a merchant cash advance works
The process is designed to be quick and minimally disruptive:
1
Assessment of card turnover
Lenders review your recent card sales history to determine how much funding may be available.
2
Advance provided
You receive a lump sum of working capital.
3
Automatic repayment
A fixed percentage of your daily card receipts is deducted until the agreed amount has been repaid.
4
Completion
Once the advance and fees are repaid, deductions stop automatically.
There are typically no fixed repayment dates, which helps reduce pressure on cash flow.
Key benefits of a merchant cash advance
Merchant cash advances offer several practical advantages for eligible businesses:
- Fast access to funding
- Repayments that flex with revenue
- No fixed monthly instalments
- Minimal paperwork compared to traditional loans
- No requirement for property security
Because repayments are taken directly from card transactions, there is less risk of missed payments or administrative burden.
What can a merchant cash advance be used for?
An MCA can be used for a wide range of business purposes, including:
- Purchasing stock or inventory
- Funding marketing campaigns
- Managing short-term cash flow gaps
- Upgrading equipment or premises
- Covering seasonal expenses
It is particularly useful where funding is needed quickly to support day-to-day operations or growth opportunities.
Who is a merchant cash advance suitable for?
Merchant cash advances are most commonly used by businesses with significant card-based revenue, such as:
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Retail shops
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Restaurants, cafés, and bars
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Hospitality and leisure businesses
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Salons and service providers
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E-commerce businesses with card payments
Businesses with stable card turnover are typically best placed to benefit from this type of funding.
Important considerations
While merchant cash advances are flexible, they are designed as a short-term funding solution rather than long-term borrowing. Costs can be higher than traditional loans, reflecting the speed and flexibility provided.
A clear understanding of your revenue patterns is important to ensure the facility works comfortably within your cash flow.
Why arrange an MCA through Bothwick Finance?
Choosing the right funding option is critical, particularly when speed is a priority. At Bothwick Finance, we help you assess whether a merchant cash advance is the most suitable solution for your circumstances.
When you work with us, you benefit from:
- Access to specialist MCA providers
- Clear explanation of costs and repayment structure
- Facilities aligned to your sales patterns
- Fast decision-making where possible
- Honest advice on alternative funding options if more suitable
Our goal is to ensure the funding supports your business rather than creating unnecessary pressure.
Frequently asked questions
Merchant cash advance FAQs
How much can I borrow with a merchant cash advance?
Funding is typically based on your monthly card turnover. Higher and more consistent card sales generally allow access to larger advances.
Are repayments fixed?
No. Repayments are a percentage of daily card transactions, so they vary according to your sales.No. Repayments are a percentage of daily card transactions, so they vary according to your sales.
Do I need to provide security?
How quickly can funds be available?
Timescales vary, but MCA facilities are often arranged more quickly than traditional business loans.
Request a quote
If your business relies on card payments and you need flexible working capital without fixed repayments, a merchant cash advance may be worth considering.
Request a quote today and speak to one of our account managers about whether an MCA facility is suitable for your business.
To enquire about any of products or services, please contact us to speak to a member of staff.