Name: Merchant Cash Advance
Brand: Fleximize
Rating: 4.9 (1034 reviews)

What is a merchant cash advance?

A merchant cash advance (MCA) is a fast and flexible way for businesses to access funds. Unlike a traditional loan with fixed monthly repayments, an MCA allows you to repay as a percentage of your daily card sales.

This makes it a great option for businesses that rely on credit and debit card transactions, such as restaurants, retail stores, beauty salons, and hotels.

Merchant cash advance in a nutshell

Fast funding. Get the money in your account within 24-48 hours.
Flexible repayments. Pay back a percentage of daily card transactions.
No collateral required. Approval is based on sales, not business assets.
Bad credit? No problem. Even businesses with low credit scores can qualify.
Higher approval rates. MCA providers focus on sales volume, not just credit history.

How does a merchant cash advance work?

An MCA provides upfront cash, which you repay through a small percentage of your daily card sales. This means that during busy months, you pay back more, and in slower months, you pay back less—making repayments flexible and suited to seasonal businesses.

Applying for a merchant cash advance UK is quick and simple:

Apply online. Provide details about your business and your recent card sales history.
Get approved. Lenders assess your monthly card revenue to determine how much you can borrow.
Receive funds. Once approved, the cash is deposited into your account—often within 24-48 hours.
Repay automatically. A small percentage of your daily card sales goes toward repayment until the full amount is paid off.

Example scenario

A London café with an average monthly card revenue of £20,000 applies for a £15,000 merchant cash advance loan.

The café agrees to repay 10% of daily card sales.

If they process £1,000 in card payments in a day, £100 is deducted toward repayment.

During busy months, they repay faster, while in slower months, payments adjust accordingly.

This flexibility makes an MCA ideal for businesses with fluctuating revenue.

How much does a merchant cash advance cost?

The cost of an MCA is determined by a factor rate, not an interest rate. This means you repay a fixed amount based on how much you borrow.

For example, a £10,000 MCA with a 1.3 factor rate means the business repays £13,000 in total.

Additional costs may include:

Processing fees
Broker commissions
Early repayment penalties

How long does it take to pay back?

A merchant cash advance direct lender typically structures repayments over 3 to 12 months, depending on your sales volume. If your business has high sales, you’ll repay faster. If sales slow down, repayments automatically adjust to avoid financial strain.

For businesses with seasonal fluctuations, this can be an advantage compared to fixed loan repayments.

How to refinance a merchant cash advance

If you already have an MCA but need more funding, merchant cash advance refinancing options include:

Topping up your existing advance with more cash.
Consolidating multiple advances into a single, lower-cost repayment plan.
Switching to a traditional business loan for better terms.

Before refinancing, check if merchant cash advance lenders UK offer fair rates and clear terms.

What type of business is a merchant cash advance suitable for?

A merchant cash advance for startups and established businesses is best for:

Retail stores needing extra stock.
Restaurants and cafés covering supplier costs.
Salons and beauty businesses investing in equipment.
Hotels and hospitality businesses managing seasonal changes.
E-commerce businesses that accept in-person card payments.

How to apply for a merchant cash advance

Applying for an MCA is quick and easy:

Check your eligibility. Most merchant cash advance lenders UK require 3+ months of card sales history.
Compare lenders. Look for transparent fees and competitive factor rates.
Apply online. Submit details about your business and recent transactions.
Receive an offer. Get a decision within 24 hours.
Accept and get funded. The advance is sent to your account.

What are the advantages and disadvantages of a merchant cash advance?

Advantages

Fast approval and funding, so you can get cash in 24-48 hours.
Flexible repayments adjusted to sales volume.
No collateral is needed, so it’s easier to get approved than with traditional loans.
Available with bad credit, making it a good option for businesses with low credit scores.

Disadvantages

Higher costs, as merchant cash advance companies charge more than traditional loans.
Limited borrowing amounts, with funding based only on card sales.
Less predictable repayments because repayment speed depends on sales.

Is a merchant cash advance right for your business?

A merchant cash advance is a fast, flexible way to access funding if your business relies on card sales. However, it’s important to compare costs, repayment terms, and alternatives before making a decision.

For a more structured and cost-effective funding solution, consider Fleximize’s business loans.

Flexiloan Flexiloan Lite

Our Flexiloan product is available to businesses trading for at least 12 months over a 12-60 month term.

months

Interest

£8,460.08

Total Repayment Amount

£58,460.08

Monthly Repayment

£3,247.78

Show potential savings through early settlement

Our Penalty-Free Promise means you won’t be charged extra for repaying early.

Find out just how much you could save through early settlement by adjusting the month of repayment in this section.

Your Loan Quote Summary
Full Settlement At
Total Repayable at Agreed Term	£58,460.08
Total Repayable if Repaid Early	£56,122.84
Interest Saving	£2,337.25

* Interest rates offered to new customers may vary from rates advertised due to variations in the Bank of England base rate and/or Standard Overnight Index Average (SONIA).

This estimate is based on a monthly interest rate of 1.70%, which may not reflect your final rate. Please apply online for a tailored quotation.

A representative example of a loan of less than £25,000: 42.4% APR representative, based on a fixed annual rate of interest of 35.9% and an assumed loan amount of £15,000 over 18 months; equating to monthly repayments of £1,089.71 and a total repayable of £19,614.78.

Our Flexiloan Lite product is available to businesses trading for at least 6 months over a 3-12 month term.

months

Interest

£3,472.16

Total Repayment Amount

£33,472.16

Monthly Repayment

£4,184.02

Show potential savings through early settlement

Fleximize is committed to its penalty-free promise for customers repaying early.

Find out just how much you could save through early settlement by adjusting the month of repayment in this section.

Your Loan Quote Summary
Full Settlement At
Total Repayable at Agreed Term	£33,472.16
Total Repayable if Repaid Early	£32,476.26
Interest Saving	£995.90

* Interest rates offered to new customers may vary from rates advertised due to variations in the Bank of England base rate and/or Standard Overnight Index Average (SONIA).

This estimate is based on a monthly interest rate of 2.50%, which may not reflect your final rate. Please apply online for a tailored quotation.

Alternatives to merchant cash advances

It’s important to find a solution that’s right for you and your business - a merchant cash advance for start up businesses isn’t the only option. Consider:

Business loans offer fixed repayments, often at lower rates.

Invoice financing lets you unlock cash from unpaid invoices.
Business credit cards are useful for small purchases.
Stock finance helps retailers buy large inventory.

How does an MCA compare to a business loan?

Feature	Merchant Cash Advance	Business Loan
Repayment Type	Percentage of card sales	Fixed monthly payments
Approval Speed	24-48 hours	1-2 weeks
Collateral Required?	No	Sometimes
Best for…	Card-reliant businesses	Businesses with stable revenue

A small business loan from Fleximize can provide flexible finance on terms that work for you.

Apply for a business loan

Why choose Fleximize for business funding?

At Fleximize, our business loans provide greater flexibility and clear pricing, giving you the capital you need to invest in many areas of your business. These can include:

Expanding your premises
Recruiting talent
Website development
Marketing
Cash flow boost
VAT payments
General growth

We offer both unsecured and secured options. To give you an initial idea, here’s a summary of what we can offer:

Business loans of up to £500,000 – Not just based on card sales.
Approval and transfer of funds in as little as 24 hours
Interest rates from 0.9% per month
No hidden fees or early repayment penalties
Interest charged on reducing balance, not the total loan amount
Repayment holidays and top-ups are available as standard
Award-winning service as rated ‘Excellent’ on Trustpilot.

Looking For Funding? Let's Talk.

If you want to know more about how we can support your business, give our friendly team a call and you'll get straight through to someone who can help, like Josh. Or, if you're ready to apply, get started by clicking the button below.

Apply Now

0207 100 0110

Mon-Fri: 8.30am - 5.00pm

Glossary

Merchant cash advance meaning – A type of business funding where repayments are made as a percentage of daily card sales instead of fixed monthly payments.
Factor rate – A multiplier used to determine the total repayment amount of an MCA (e.g., a £10,000 advance with a 1.3 factor rate means the business repays £13,000).
Advance amount – The total sum of money provided to a business through an MCA.
Card sales percentage – The agreed portion of daily card transactions that is automatically deducted for repayment.
Cash merchant advance – Another term for a merchant cash advance, often used interchangeably.
Merchant cash advance brokers – Financial professionals who help businesses find suitable MCA providers.
Merchant cash advance calculator – An online tool that helps businesses estimate how much they can borrow and what their repayments will look like.

Merchant Cash Advance

Merchant Cash Advances (MCAs) offer flexible financing, providing businesses with cash upfront, repaid based on future credit and debit card sales.