FINANCE OPTIONS
Understanding MCA Loans: What You Need to Know
MCA Loans, or Merchant Cash Advances, are a type of financing where businesses get a lump sum of cash in exchange for a percentage of their future sales. It's a quick way to get funding without traditional loans. If you're considering business funding, an MCA might be worth exploring!
Apply for business financing up to £500,000
- Quick and easy application process
- Loan disbursed within 24 hours
- No additional charges for early repayment
We Like To Keep Things Simple
Match with
150+
Lenders
Loans from
£1000
to
£500K
to
£500K
zero hidden fees
What are the Benefits of MCA Loans?
MCA Loans, or Merchant Cash Advances, provide businesses with quick access to capital based on future credit card sales or receivables. This type of financing is beneficial for entrepreneurs who require urgent funds to manage cash flow, invest in inventory, or cover operational expenses, as the approval process is typically faster and less stringent than traditional loans.
Fast funding process
Flexible repayment terms
No collateral required
Different Types of MCA Loans
Traditional MCA Loans
A lump sum advance repaid via a fixed percentage of daily credit/debit card sales.
Split-Funding MCA Loans
Repayments are split at the processor level before funds reach the merchant.
Future Receivables Purchase MCA Loans
Advance is repaid by selling a portion of projected future sales, not just card sales.
What are MCA Loans?
What MCA Loans Are
MCA (Merchant Cash Advance) loans provide businesses with a lump sum of cash upfront. Technically, they are not traditional loans, but rather a purchase of future sales, meaning the business agrees to repay the advance using a portion of its future debit and credit card sales, plus fees.
Repayment Methods and Key Features
Repayment is typically done through daily or weekly deductions from sales or fixed withdrawals from the bank account, depending on the agreement. MCA loans are fast to fund, require little documentation, and don’t usually require collateral, but they are expensive and come with frequent repayments that can impact cash flow.
Types of MCA Loans
There are several types of MCA loans: Traditional MCAs use a fixed percentage of daily credit/debit card sales for repayment; Split-Funding MCAs have repayments split at the processor level before reaching the merchant; and Future Receivables Purchase MCAs are repaid by selling a portion of projected future sales, not just card sales.
FAQ’S
What is a Merchant Cash Advance (MCA) loan?
Which businesses can apply for an MCA loan?
How quickly can I get approved and funded for an MCA loan?
Is a Merchant Cash Advance loan secured or unsecured?