Business Loans
Merchant Cash Advance Loans

Compare Merchant Cash Advance Loans

Merchant cash advances are designed for businesses that need an advance on their projected card sales
Below we compare a selection of specialist business finance providers that offer merchant cash advances to UK companies
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Information written by Connor Campbell Last updated on 26 August 2022.

Whether it is to take advantage of an opportunity, as short-term cover for a cash flow problem, or to grow and expand your organisation, at some point you may look to borrow money for your business.

If you regularly receive payments from your customers via debit or credit card, one way to secure funds is through a merchant cash advance. You will be able to borrow a lump sum, and then pay it back through a pre-agreed percentage of your future card transactions.

Our table below allows you to compare merchant cash advance lenders in the UK, including the minimum required turnover a year, the available terms, and how much you can potentially borrow.

Or, if you want a bit more information on how a merchant cash advance works, you can read our handy guide, or take a look at our Frequently Asked Questions.

How do merchant cash advances work?

A merchant cash advance is, essentially, a type of unsecured business loan. As with a traditional business loan, you borrow money from a provider and then pay that sum back.

However, a merchant cash advance is specifically for businesses with a high volume of customer debit and credit card transactions. You borrow a lump sum and then, instead of making a fixed monthly repayment, pay off the merchant cash advance through a pre-agreed percentage of your future customer card payments.

This means that your repayment plan is flexible and can accommodate the ebbs and flows of your trading. If you have a busy period, you will pay off your merchant cash advance loan more quickly. If trading is slow, however, you will repay less – you won’t need to find money that you don’t necessarily have to pay off a fixed amount.

What is a factor rate?

Instead of an interest rate that you would typically get on a traditional business loan, merchant cash advances are charged at a fixed rate of pennies per pound borrowed. This is called the factor rate and is mostly displayed as a decimal figure, such as 1.2 or 1.4.

To work out how much you will need to repay overall, the lender will multiply the amount you are borrowing by the factor rate. So if you took out a merchant cash advance of £10,000 at a factor rate of 1.4, you would pay £4,000 in fees on top of the sum borrowed, making a total of £14,000.

The factor rate will be determined by your lender, based on your business sector, and your business’s health and performance.

What is a merchant cash advance agreement?

A merchant cash advance agreement is simply the contract between your business and the lender, detailing the terms and conditions of your deal. It will include the amount of money you are borrowing, the factor rate, and the percentage the lender will take of your future monthly card sales.

Are merchant cash advances legal?

Yes, merchant cash advances are legal, and in fact are endorsed by the government. They can allow you to fund a range of business activities, and are repaid through a percentage of your future monthly card sales.

Am I eligible for a merchant cash advance?

To be eligible for a merchant cash advance loan, your business will need to meet the lender’s criteria. This will likely include, but is not limited to:

being based in the UK or Ireland
having a merchant account (i.e. accepting debit and credit card payments)
being a limited company, partnership or sole trader
trading for a minimum period (this can vary from lender to lender)
processing a minimum amount in card sales per month (this can vary from lender to lender)

Since a merchant cash advance is based on monthly card sales, it is possible to get one if you have a bad credit history. However, your credit score may affect your factor rate if the lender perceives you as a higher-risk customer.

As a start up, you may struggle to meet the minimum monthly card sales and trading period requirements, though this is not impossible. You may, therefore, need to consider other forms of finance for start ups.

» COMPARE: Start up loans and finance

Merchant cash advance loan example

Let’s say you are eligible to borrow £10,000 from a merchant cash advance lender, at a factor rate of 1.2, to be repaid through 10% of each future customer card transaction.

This means the total amount you will need to repay is £12,000, as that is £10,000 times the factor rate of 1.2.

If a customer bought something from you for £100, £10 of it would go to the merchant cash advance lender. That’s because £100 multiplied by 0.10 (i.e. 10%) is £10.

If you had a strong month at the till, and took £15,000 in card payments, you would have repaid £1,500.

But if your business had a slow month, and only took £2,000, you would have only repaid £200.

Advantages of a merchant cash advance

Merchant cash advance repayments are based on a percentage of your monthly card sales, and will rise and fall in line with your business’s performance.
The factor rate and percentage of monthly card sales taken are both fixed at the start of your agreement.
Your repayments will be taken automatically.
You don’t need to provide a business plan to get a merchant cash advance.
You don’t need to provide collateral, or assets, to receive a merchant cash advance.
It is available for businesses with a weaker business credit score.

Disadvantages of a merchant cash advance

The total cost of a merchant cash advance can be expensive when compared to other forms of business finance.
You will only be able to borrow an amount in line with your monthly card sales.
It is only suitable if your business processes the majority of its transactions via debit or credit card.
Some lenders will only work with specific card terminal providers.
If you are a start up, you may struggle to get a merchant cash advance unless you meet the minimum trading and turnover requirements.

What can a merchant cash advance loan be used for?

While there are requirements for who can get a merchant cash advance, there are no real restrictions on what the loan can be used for. So you could use your merchant cash advance loan to:

cover a cash flow shortage due to seasonal training
hire or train staff
buy stock
purchase new equipment
expand your business premises
spend money on marketing and advertising

How can I compare merchant cash advance lenders?

If you want to compare merchant cash advance lenders, you can use our NerdWallet table to see what is currently on offer. You should pay attention to the:

minimum turnover requirements
available term length
minimum and maximum amount available
minimum amount of time your business needs to have been trading

Once you have selected your merchant cash advance lender, click ‘see deal’ to start your application.

» COMPARE: Merchant cash advances

Merchant Cash Advance FAQs

What is a merchant cash advance used for?

A merchant cash advance can be used for anything you see fit. This might be hiring new staff, training your current staff, purchasing stock or equipment, or expanding your business premises.

What is the difference between a loan and a merchant cash advance?

With a traditional business loan, you would borrow a sum of money, and then repay that money, with interest, by making fixed monthly repayments.

With a merchant cash advance, you still borrow a lump sum of money, but you then repay it not in fixed monthly payments, but through a percentage of your monthly debit and credit card sales. This means your repayments will rise and fall with your card sales.

And instead of an interest rate, a factor rate will determine how much you repay overall. So if you borrow £10,000 with a factor rate of 1.2, you will need to repay £12,000.

» COMPARE: Business loans with NerdWallet

About the author:

Connor is a writer and spokesperson for NerdWallet. Previously at Spreadex, his market commentary has been quoted in the likes of the BBC, The Guardian, Evening Standard, Reuters and The Independent. Read more

Compare Merchant Cash Advance Loans

6 products found

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YouLend Cash Advance

Your business must take on a minimum of £3,000 per month of card sales

YouLend approves a customer every 10 minutes

One competitive fixed fee, no interest or hidden charges

Apply online in minutes and get an instant decision from their UK support team rated “Excellent” on TrustPilot
Minimum Turnover
£3,000 card sales per month

Available Amounts
£3,000 to £1,000,000

Available Terms
3 to 18 months

See Deal + More info
Company details
- YouLend is Europe's largest revenue finance provider - working with eBay, Shopify and Just Eat
- YouLend funds over 5,000 UK SMEs every month including sole traders, partnerships and limited companies
- Apply online in minutes, for a decision within 24 hours
Eligibility Criteria
- Must take on average £1,250 per month of card sales or more (in-store and/or online)
- Must have been trading for at least 3 months
- Ideal for B2C businesses
Broker
Swoop Funding Merchant Cash Advance

Access an unsecured advance of cash based on your future credit and debit card sales, not business profits

Only available to businesses that take card payments

Use for any business purpose
Minimum Turnover
£25,000 p.a.

Available Amounts
£2,500 to £500,000

Available Terms
1 month to 1 year

See Deal + More info
Company details
- Simple, secure and speedy search of 1,000 funding providers without affecting your credit rating
- Free access every type of finance including the Recovery Loan Scheme
- Online management allows you to find funding opportunities and track applications
Eligibility Criteria
- Must be based in the UK
- Must have an annual turnover of £25,000+
- Must take card payments
- Must have been trading for 12 months or more
Broker
Funding Xchange Merchant Cash Advance

Discover instant & personalised Cash Advance offers in just 3 minutes

A flexible way to raise working capital for your business

Repayments are based on your credit & debit card sales
Minimum Turnover
£100,000 p.a.

Available Amounts
£1,000 to £250,000

Available Terms
1 month to 5 years

See Deal + More info
Company details
- Access 70 lenders from one simple funding request
- Easily compare the choices available, including RLS options
- Apply with confidence, no impact on your credit score
Eligibility Criteria
- Your business must have been trading for a minimum of 2 years
- Your business must have an annual turnover of at least £100,000
- You will need to accept credit/debit cards to see offers for Merchant Cash Advance products
365 Business Finance Merchant Cash Advance

A flexible business funding alternative

Pay back an affordable % of your card transactions

No security or business plan required
Minimum Turnover
£10,000+ card transactions per month

Available Amounts
£10,000 to £300,000

Available Terms
4 to 18 months

See Deal + More info
Company details
- Get between £10,000 to £300,000
- Pay back through your customer card transactions
- A single all inclusive charge that never changes
- No interest, APRs or hidden extras
Eligibility Criteria
- Your business must have been trading for at least 6 months
- Your business must accept debit and credit card payments
- Your business must take at least £10,000 per month in card transactions.
iwoca Revenue Based Loan

YOUR BUSINESS MUST BE A LIMITED COMPANY WITH A MINIMUM OF 6 MONTHS TRADING HISTORY

Get up to £100,000 for your business with a 24 hour decision

Tailor your loan how you like it by choosing a percentage of your revenue to repay each month

You won’t pay any interest but there is a simple, fixed fee
Minimum Turnover
£12,000 p.a.

Available Amounts
£1,000 to £100,000

Available Terms
1 month to 2 years

See Deal + More info
Company details
- Flexible finance for small businesses from £1,000 to £200,000
- No long term commitments and flexible repayments to fit for your business
- Apply online in minutes for a decision (some decisions may take up to 24 hours)
Eligibility Criteria
- Business must take card payments
- All company types accepted including Limited Companies and Sole Traders
- Must have been trading for at least 3 months
- Must make at least £1,000 per month in revenue
- Must have access to online banking
Previse Cash Advance

Previse Instant Advance: Funds from £10,000 - £500,000

Terms from 3, 6 and 9 months

Completely unsecured, no personal guarantees or security required
Minimum Turnover
£250,000 p.a.

Available Amounts
£25,000 to £2,000,000

Available Terms
3, 6 or 9 months

See Deal + More info
Company details
- Previse Instant Advance is a fast cash flow facility, designed specifically to help businesses grow
- Completely unsecured, no personal guarantees or security required
- Available with a variety of short term lengths
Eligibility Criteria
- Must be a limited company
- Must have a minimum of 6 months active trading history Must have a minimum annual turnover of £250,000

Suppliers that don't offer Merchant Cash Advances but may offer suitable alternatives:

Nationwide Finance Business Finance

Nationwide Finance help 35,000 businesses get finance each year

Direct funder - not a broker

Same day decision, funds within 24 hours
Minimum Turnover
No minimum

Available Amounts
£8,000 to £500,000

Available Terms
1 to 5 years

See Deal
Company details
- Nationwide Finance help 35,000 businesses get finance each year
- Direct funder - not a broker
- Same day decision, funds within 24 hours
Eligibility Criteria
- Nationwide Finance help 35,000 businesses get finance each year
- Direct funder - not a broker
- Same day decision, funds within 24 hours
Funding Circle

Your business must have a minimum of 12 months’ trading history

Short & long term business loans from £10,000 to £500,000 at fixed rates

Spread costs over 3 months with FlexiPay line of credit from £2,000 to £250,000 - only pay when you use it - simple flat fee

Rated 'Excellent' on TrustPilot - apply online in minutes, quick decisions, UK-based support team
Minimum Turnover
£25,000 p.a.

Available Amounts
£10,000 to £500,000

Available Terms
6 months to 6 years

See Deal
Company details
- Short & long term business loans from £10,000 to £500,000 at fixed rates
- Spread costs over 3 months with FlexiPay line of credit from £2,000 to £250,000 - only pay when you use it - simple flat fee
- Rated 'Excellent' on TrustPilot - apply online in minutes, quick decisions, UK-based support team
Eligibility Criteria
- Short & long term business loans from £10,000 to £500,000 at fixed rates
- Spread costs over 3 months with FlexiPay line of credit from £2,000 to £250,000 - only pay when you use it - simple flat fee
- Rated 'Excellent' on TrustPilot - apply online in minutes, quick decisions, UK-based support team
Broker
Tide

Tide works with a number of partners who offer a range of flexible business funding solutions

They will run pre-eligibility checks, without affecting your credit score, to show you credit options tailored to your business

Connect your business bank account in minutes to see your credit options
Minimum Turnover
Varies

Available Amounts
£500 to £15,000,000

Available Terms
1 month to 6 years

See Deal
Company details
- Tide works with a number of partners who offer a range of flexible business funding solutions
- They will run pre-eligibility checks, without affecting your credit score, to show you credit options tailored to your business
- Connect your business bank account in minutes to see your credit options
Eligibility Criteria
Fleximize

YOUR BUSINESS MUST BE A LIMITED COMPANY WITH 6+ MONTHS' TRADING

Fast, hassle-free business loans of up to £500,000 for almost any purpose

Industry-leading flexibility – top-ups, repayment holidays, and penalty-free overpayments available on all loans

Award-winning customer service – rated 4.9/5 on Trustpilot
Minimum Turnover
£120,000 p.a.

Available Amounts
£10,000 to £500,000

Available Terms
3 months to 5 years

See Deal
Company details
- Fast, hassle-free business loans of up to £500,000 for almost any purpose
- Industry-leading flexibility – top-ups, repayment holidays, and penalty-free overpayments available on all loans
- Award-winning customer service – rated 4.9/5 on Trustpilot
Eligibility Criteria
Capify

Your business must have a minimum of 1 years trading history.

Superfast lending. Receive your funds the following day

All credit profiles are considered. Loans for any business purpose

Easy application process. Get conditionally approved in just 2 minutes
Minimum Turnover
£120,000 p.a.

Available Amounts
£5,000 to £500,000

Available Terms
3 to 18 months

See Deal
Company details
- Capify loans are paid back in very small automated regular payment; either daily or weekly
- A fast and easy business funding alternative for SMEs
- Funds can be used for any business purpose, from managing cashflow through to improving technology
Eligibility Criteria
Broker
Love Finance

Your business must be a ltd company with 2+ years trading; and 1 director must be a UK homeowner

Love Finance is a lender and broker

Get a decision in minutes via a simple online form

Get funding within 24 hours
Minimum Turnover
£25,000 p.a

Available Amounts
£5,000 to £500,000

Available Terms
3 months to 5 years

See Deal
Company details
- Love Finance is a lender and broker
- Get a decision in minutes via a simple online form
- Get funding within 24 hours
Eligibility Criteria
- Love Finance is a lender and broker
- Get a decision in minutes via a simple online form
- Get funding within 24 hours
Barclays

Flexible borrowing for your business - unsecured (up to £100,000) and secured loans available

Fixed interest rates available on all loans, plus variable interest rates for loans over £25,000

Subject to application, financial circumstances and borrowing history. Eligibility criteria applies.
Minimum Turnover
No minimum

Available Amounts
From £1,000

Available Terms
1 to 20 years

See Deal
Company details
- Flexible borrowing for your business - unsecured (up to £100,000) and secured loans available
- Fixed interest rates available on all loans, plus variable interest rates for loans over £25,000
- Subject to application, financial circumstances and borrowing history. Eligibility criteria applies.
Eligibility Criteria
- Flexible borrowing for your business - unsecured (up to £100,000) and secured loans available
- Fixed interest rates available on all loans, plus variable interest rates for loans over £25,000
- Subject to application, financial circumstances and borrowing history. Eligibility criteria applies.
Cubefunder

Only available to Limited Companies in England and Wales with 3+ months' trading

Fast and Flexible funding from £5,000 - £100,000 for Limited Companies within England and Wales

No penalties for Late payments or Early repayment

Apply and receive funds within 48 hours
Minimum Turnover
£50,000 p.a.

Available Amounts
£5,000 to £100,000

Available Terms
3 months to 1 year

See Deal
Company details
- Fast and Flexible funding from £5,000 - £100,000 for Limited Companies within England and Wales
- No penalties for Late payments or Early repayment
- Apply and receive funds within 48 hours
Eligibility Criteria
- Fast and Flexible funding from £5,000 - £100,000 for Limited Companies within England and Wales
- No penalties for Late payments or Early repayment
- Apply and receive funds within 48 hours

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