For UK retailers, restaurants, salons, cafés, and other card-taking businesses, a Merchant Cash Advance could be the flexible funding solution that keeps your cash flow strong during busy and quiet seasons alike.
What Is a Merchant Cash Advance?
A Merchant Cash Advance (MCA) is a flexible form of business finance that lets you borrow against future card sales. Instead of repaying a fixed monthly amount, you repay a small percentage of your daily or weekly card takings until the advance is fully repaid.
This means your repayments automatically adjust in line with your income – ideal for businesses whose sales fluctuate across the year.
How It Works
- You receive a lump sum upfront – for example, £20,000, based on your average monthly card revenue.
- You repay a fixed percentage (usually 12–20%) of your card transactions until the advance, plus the lender’s fee, is cleared.
- No fixed term or interest rate – repayments rise and fall with your sales volume.
Because of this flexibility, Merchant Cash Advances are especially popular among:
- Hospitality businesses (restaurants, pubs, cafés, takeaways)
- Retailers (high street shops, online stores, boutiques)
- Health & beauty professionals (salons, barbers, spas, aesthetic clinics)
- Leisure & tourism businesses (gyms, hotels, travel agents, attractions)
Key Benefits of a Merchant Cash Advance
Flexible repayments – Pay more when you’re busy, less when you’re not.
Fast access to funds – Often approved within 24–48 hours.
No need for traditional collateral – Approval is based on card turnover, not assets or property.
Perfect for seasonal businesses – Smooth out cash flow peaks and troughs.
Simple, transparent costs – You’ll know the total repayment amount upfront.
This flexibility makes MCAs particularly useful for businesses preparing for busy trading periods, launching promotions, or recovering from slow months.
When to Use a Merchant Cash Advance
You might use an MCA to:
- Stock up on inventory before key trading periods (e.g. Christmas, Black Friday, summer holidays)
- Upgrade premises or equipment in your restaurant, salon, or store
- Invest in marketing campaigns to boost sales during seasonal peaks
- Hire additional staff to meet customer demand
- Manage cash flow dips during quieter trading months
For example, if your café or shop takes £30,000 per month in card payments, a £20,000 advance repaid via 15% of sales allows your business to access funds immediately – without straining your monthly cash flow.
Example: How It Works in Practice
Let’s say you own a retail clothing store with average monthly card sales of £25,000.
You take a £20,000 Merchant Cash Advance with a 15% repayment rate.
If one day you process £1,200 in card payments, £180 goes toward repayment.
If the next day is slower and you process £350 in card payments, only £52.55 is repaid.
That flexibility keeps your repayment schedule aligned with your real sales activity – a major advantage over fixed monthly loan repayments.
Is a Merchant Cash Advance Right for Your Business?
Merchant Cash Advances typically suit businesses that:
- Take regular card payments from customers
- Have been trading for at least 6 months
- Turn over £5,000+ in monthly card transactions
- Experience seasonal sales patterns or uneven cash flow
If you’re in retail, hospitality, beauty, leisure, or e-commerce, an MCA can be a fast, convenient way to fund growth and maintain stability throughout the year.
How Funding Pool Can Help
At Funding Pool, we partner with a panel of trusted UK funders offering competitive Merchant Cash Advance options for small and medium-sized businesses.
We’ll help you:
- Find the right MCA provider based on your card revenue
- Understand total costs before you apply
- Access funds quickly – often within 48 hours of approval
Whether you run a restaurant in Manchester, a beauty salon in London, or a retail store in Birmingham, our team helps you get funding that flexes with your business – not against it.
Want to explore your options?
Apply for a Merchant Cash Advance today and discover how flexible business finance can help you grow through every season.