FINANCE OPTIONS

Understanding MCA Loans for Restaurants

Merchant Cash Advances (MCAs) are an innovative financing solution tailored for restaurants and similar establishments. By converting future credit card sales into immediate capital, MCAs provide quick, flexible funding. Restaurants benefit from this approach to purchase inventory, upgrade systems, or invest in marketing strategies. Explore Cash Advance options.

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What are the benefits of MCA loans for Restaurants?

The primary benefits of MCA loans include flexible repayments, typically based on sales, and rapid access to funds without fixed repayment terms. Borrowing amounts range from £5,000 to £500,000, and approval is often swift, usually within 72 hours. These loans offer competitive rates with factor rates from 1.1 to 1.5, equating to an implied APR range of 20% to 50%. Discover more business loans.

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Quick access to funds
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Flexible repayment options
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No collateral required

What are the different types of MCA loans for Restaurants?

Traditional Merchant Cash Advance

Available for businesses trading for at least 6 months, this MCA offers £5,000 to £300,000 over 3 to 18 months, requiring a minimum monthly card sales of £5,000. Learn more about unsecured working capital loans.

Traditional Merchant Cash Advance

Traditional MCAs cater to restaurants with facilities such as EPOS systems, ensuring smooth processing of credit card transactions. With decision times ranging from 1 to 3 days, these advances are ideal for inventory and equipment investments, also embedding marketing efforts into their value proposition. Restaurants benefit from factor rates between 1.1 and 1.5, and the convenience of automated application processes using recent credit card sales statements.

Split Funding MCA

Designed for those with consistent sales, requiring an EPOS system and typically £10,000 monthly sales. Funding amounts range £10,000 to £500,000 for 6 to 12 months. Explore E-Commerce Financing.

Split Funding MCA

Split Funding MCAs enable restaurants and retail setups to support large seasonal expenses or renovations. With factor rates from 1.2 to 1.4 and decision times of 2 to 5 days, this option suits businesses with strong, established sales, demonstrated through EPOS sales data. It offers a fast, efficient solution particularly for venues looking to expand or innovate services.

Revenue-Based Financing

Ideal for businesses over one year old with £50,000 annual turnover. Loans range £25,000 to £200,000 over 6 to 24 months. Consider debt financing solutions.

Revenue-Based Financing

Focusing on stable revenue streams, Revenue-Based Financing provides flexible financing aligned with turnover. Interest applies at 1%-2% of monthly income, ensuring manageable repayments over 6 to 24 months. It's perfect for tech startups and similar entities preparing for product launches, benefitting from detailed revenue analysis and a comprehensive approval process.

What is an MCA loan for restaurants?

Application Processes and Approvals

Applying for an MCA involves providing sales data and usually results in a decision within 24 to 72 hours. Typically, funds become available 3 to 5 business days post-approval. Our platform streamlines this with digital applications and real-time processing ensuring rapid fund access and easy management. Explore Invoice Financing options.

Regulatory Compliance

All MCA providers must comply with FCA guidelines, ensuring transparency in contract terms, fees, and repayment structures. Our services ensure adherence to these regulations, providing peace of mind and trust in financial dealings. Compliance is at the core of everything we provide to protect your interests.

Borrowing Capacity and Costs

Borrowing amounts depend on your monthly credit card sales volume and other factors like business stability. Implied APRs range from 20% to 50%, based on repayment speed and terms. Additional fees may include origination or service charges. We offer transparency in these areas, positioning your business for success with clear information and support.

FAQ’S

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