Merchant Cash Advance Solutions for UK Businesses

It depends on your business needs. A merchant cash advance (MCA) is ideal if you need fast funding and your business relies on card payments. Repayments are flexible and based on a percentage of daily card sales, which means they adjust to your cash flow.

In contrast, a business loan typically has fixed monthly repayments and may require a strong credit score or collateral.

Choose an MCA if: You need fast access to capital, don’t qualify for traditional loans, or want flexible repayments that align with sales.

Choose a business loan if: You prefer fixed terms, lower costs, and have solid credit and security to offer.

With a merchant cash advance, repayments are taken as a percentage of your daily card sales. For example, if you agree to repay 10% of your card takings and you make £500 in sales one day, £50 is automatically used for repayment.

This structure makes repayments flexible and affordable, especially during quieter periods.

There are no fixed dates or penalties, and the total repayment includes the advance plus a pre-agreed fee.

Yes, you can often get a merchant cash advance even with a poor credit score. MCAs are based primarily on your card sales, not your credit rating.

As long as your business processes regular card payments, you may still be eligible. This makes MCAs a popular option for businesses that may have struggled to secure traditional finance.

Tip: At ELS, we review each case personally, not just your numbers. If an MCA isn’t right for you, we’ll suggest a better alternative.

Merchant cash advances are most suitable for businesses with steady card sales. Common examples include:

- Retail stores and boutiques
- Hair and beauty salons
- Cafés, restaurants, and takeaways
- Hospitality and accommodation providers
- E-commerce businesses with card payment gateways

If your business has seasonal or fluctuating income, an MCA’s flexible repayment model can help manage cash flow more effectively than a fixed loan.

If you're a new business but already taking regular card payments, an MCA could be a good option. However, many providers (including ELS) will want to see at least 3–6 months of sales history to assess your eligibility.

If you’re just starting out and don’t yet have consistent revenue, you might want to explore startup loans, equipment leasing, or other funding routes. We’ll help you find the right fit.

The amount you can borrow for a Merchant Cash Advance will be based on the volume of your card sales. This is typically up to 120% of your card sales but can be as high as 200% depending on your business.

Merchant Cash Advances are calculated on factor rates.  Typically factor rates will fall between 1.08 and 1.40 and are heavily dependent on the business and size of the facility you require.  For example if you borrowed £10k at a factor rate of 1.2 you would pay back £12k.  This would be the total regardless of the amount of time it takes to pay back the facility.  There is no APR or penalties on MCAs.

Once approved, the funds are there, ready when you need them. This is one of the quickest forms of business finance. 

As there are no assets involved, we keep it simple. We will request some basic documentation and recent bank statements.

MCAs are flexible, quick, and don’t require assets, offering a versatile alternative to traditional routes. Speak to our expert team on 0116 389 3839

ELS offers a personalised approach, quick approvals, and incredible flexibility with access to a range of funders and financial products to suit your specific needs.

Take a look at our comprehensive Guide to Merchant Cash Advances where we have attempted to answer as many questions about MCAs as possible.  If your question isn't covered, get in touch and we'll not only answer your question we'll add it to the guide. 0116 389 3839 or email: info@els.lease