For businesses that rely on card machines to process customer payments, card machine loans offer a smart and efficient way to secure the capital needed to grow and thrive. These loans are tied directly to your card sales, making them a convenient alternative to traditional financing options.
Whether it’s hiring new staff, upgrading equipment, or managing seasonal fluctuations, card machine loans provide a solution tailored to your business’s cash flow.
Repayments are based on a percentage of your daily card transactions, ensuring they align with your income. With quick application processes and funds often available within 48 hours, this type of financing is becoming a go-to option for many business owners.
A card machine loan is the same as a Merchant Cash Advance or Merchant Loan Advance.
What Are Card Machine Loans?
Card machine loans, also known as merchant cash advances, provide businesses with funding backed by their card payment revenue. Instead of traditional fixed repayments, these loans are repaid as a percentage of daily card sales, offering a flexible solution tailored to cash flow. Businesses handling a significant portion of transactions via debit or credit cards benefit most from this financing model.
Lenders assess the business’s projected card sales, advancing an agreed sum based on its performance. For example, if a café generates steady income through a card terminal, the lender provides funding upfront. Repayments adjust dynamically to turnover, with larger repayments during high-sales periods and smaller amounts during quieter months. This structure suits businesses with seasonal variations.
These loans serve various needs like hiring staff, upgrading equipment, or expanding operations. Since repayments are directly tied to sales, the financial burden remains manageable regardless of business performance fluctuations. With trading history as short as 12 months, applications are quick, with funding potentially available within 48 hours.
Using card terminal-generated income as collateral makes approval easier than conventional bank loans, especially for small or medium businesses. It’s an accessible option for maintaining the cash flow needed to optimise daily operations or invest in growth.
How Card Machine Loans Work

Card machine loans enable businesses to secure funding based on their card sales. Lenders assess predicted transaction revenues, offering tailored repayment structures aligned with daily card income.
Eligibility Criteria
Businesses need a minimum trading history of 12 months to qualify for card machine loans. The loan amount depends on projected card machine income, which must demonstrate sufficient turnover. This option suits small or medium-sized businesses relying heavily on card payments, such as cafés or retail stores. Traditional creditworthiness checks are less exhaustive than those for conventional loans, focusing on consistent card transaction patterns.
Application Process
The application process is straightforward and designed for speed. Businesses provide details of card machine usage, sales history, and desired funding. Lenders review transaction data, predict future revenues, and determine loan terms. Once approved, funds can often be accessed within 48 hours, supporting urgent business needs like upgrading equipment or hiring staff. Repayments are deducted automatically as a fixed percentage of daily card sales.
Benefits Of Card Machine Loans

Card machine loans offer businesses a practical way to access funding while aligning repayments with cash flow. Their unique structure provides several key benefits for small and medium enterprises.
Flexibility In Repayments
Card machine loans link repayments to a percentage of daily card sales. This adaptable repayment model ensures businesses only repay what they can afford based on actual income, reducing pressure during low-revenue periods. Seasonal businesses, such as cafes or retailers, particularly benefit from this flexibility. Unlike fixed repayment schedules, this approach automatically adjusts to daily sales variations, offering greater financial stability and predictability.
Quick Access To Funds
Card machine loans feature a streamlined approval process, allowing businesses to secure funds rapidly. With application requirements limited to a 12-month trading history and card sales data, approvals can be processed quickly. Once approved, businesses often access funds within 48 hours. This speed is crucial for addressing urgent needs, such as hiring staff, upgrading equipment, or managing unexpected expenses, ensuring operations continue without disruptions.
Drawbacks Of Card Machine Loans

While card machine loans provide flexible funding, they also come with certain drawbacks. It’s essential to understand these challenges to make informed financial decisions for your business.
Potential Higher Costs
Card machine loans often carry higher costs compared to traditional loans. Lenders include commissions and fees in repayments, which can significantly increase the total amount repaid. For example, a loan designed for six months may end up costing more than anticipated due to these additional charges. This premium reflects the convenience and speed of funding but might not suit businesses looking for low-cost finance options.
Impact On Cash Flow
Repayments tied to daily card transactions can strain cash flow, especially during periods of reduced sales. Since each repayment is automatically calculated as a percentage of card sales, low-income days still result in deductions. Businesses experiencing prolonged slow seasons might find it challenging to cover other operational expenses while maintaining the loan repayment schedule.
Comparing Card Machine Loans To Other Financing Options

Card machine loans provide a unique, flexible funding solution for businesses that primarily process payments through card terminals. To understand their true value, we can compare them with more traditional and widely-used financing options.
Traditional Bank Loans
Traditional bank loans involve fixed monthly repayments over a predetermined term. These loans often require extensive documentation, including a strong credit history, financial statements, and collateral. Approval processes can take weeks, leaving limited options for urgent funding needs. Interest rates may be lower than card machine loans, but the rigid repayment structure isn’t ideal for businesses with variable income streams, such as retail or hospitality sectors. By contrast, card machine loans adjust repayments based on daily sales, offering flexibility during low-revenue periods.
Merchant Cash Advances
Merchant cash advances (MCAs) function similarly to card machine loans, relying on future card sales for repayment. Both MCAs and card machine loans are ideal for businesses with card income but differ in term lengths and repayment flexibility, depending on the lender’s structure.
Tips For Choosing The Right Card Machine Loan Provider

Selecting a card machine loan provider involves assessing several key factors to ensure the funding aligns with your business needs. Understanding loan terms and repayment structures is essential for making an informed decision.
Evaluating Rates & Fees
Compare interest rates across providers to identify the most cost-effective option. Transparent lenders clearly outline the total repayment cost, including fees and commission. Businesses should focus on the annual percentage rate (APR) to gauge affordability. Lower rates benefit operations by reducing financial strain. For example, a provider offering a 1.2 factor rate on a £10,000 loan requires £12,000 in repayments over the loan term. Prioritise those with competitive rates.
Checking Terms And Conditions
Analyse the loan terms to ensure they’re practical and transparent. Reputable providers specify repayment percentages, fixed charges, and additional costs upfront. Look for providers offering flexibility, especially if your business has seasonal income. For instance, a repayment structure tied to 10% of daily card sales limits financial pressure during low-revenue days. Avoid providers imposing hidden fees or rigid penalties for early repayment. Understanding terms early prevents unexpected obligations.
Apply For A Card Machine Loan
Fill in the form below and one of our experienced business finance brokers will be in touch straight away to discuss your merchant cash advance options. Alternatively you can call us on 0161 5469128 to speak with one of the team about an advance,
Frequently Asked Questions
What is a card machine loan?
A card machine loan, or merchant cash advance, is a type of financing where businesses receive funds upfront, and repayments are made as a percentage of daily card sales. It’s tailored for businesses that primarily process payments via card machines.
How does repayment work for card machine loans?
Repayments are automatically deducted as a fixed percentage of daily credit and debit card sales. This means you only repay when you make sales, making it a flexible option for businesses with fluctuating income.
How quickly can I receive funds from a card machine loan?
Most lenders can process applications quickly, with funds typically made available within 48 hours after approval.
What are the key benefits of a card machine loan?
Card machine loans offer flexible repayments, quick funding, and easier approval compared to traditional loans. Repayments adjust based on your sales, making them ideal for seasonal businesses or those with variable cash flow.
Are there any costs or fees associated with card machine loans?
Yes, card machine loans often include fees or commission as part of repayments. These costs can sometimes make them more expensive than traditional loans, but they reflect the convenience and speed of this financing option.
What are the disadvantages of card machine loans?
Key drawbacks include higher costs compared to traditional loans and the impact on cash flow if sales are low, as repayments are tied to daily card transactions.
Are card machine loans suitable for all businesses?
Card machine loans are best suited for businesses with significant card transactions. They may not be ideal for businesses with minimal card-based income or those seeking low-cost finance.
How do lenders decide the loan amount?
Lenders assess your business’s card sales history and projected revenues to determine the loan amount. Consistent transaction patterns and a minimum trading history (often 12 months) are typically required.
Can I repay my card machine loan early?
Most providers don’t offer discounts for early repayment, but terms vary. Some lenders may charge a fixed fee regardless of repayment timing, so it’s important to check your agreement.
What should I consider when choosing a card machine loan provider?
Look for transparent terms, competitive interest rates, and flexible repayment structures. Compare providers based on costs (e.g., APR) and avoid hidden fees or rigid early repayment charges.
Can seasonal businesses benefit from card machine loans?
Yes, seasonal businesses benefit greatly, as repayments are proportional to daily sales. During quieter periods, repayments automatically decrease, easing the financial burden.
Are card machine loans better than traditional bank loans?
For businesses with fluctuating income, card machine loans are more flexible since repayments align with sales. However, they can be more expensive than traditional loans, which typically have fixed monthly repayments. Also business with short trading history or low credit are more likely to be accepted.
How do I apply for a card machine loan?
The process is straightforward. You typically need to provide your card machine sales history and business details. Most applications are simple, and approval is based on predicted transaction revenues. Click Here to Apply Now
What happens if my sales are lower during repayment?
Since repayments are a percentage of your daily sales, lower sales mean smaller repayment amounts, reducing financial stress during slow periods.
Are card machine loans the same as merchant cash advances?
Yes a card machine loan is the same as a Merchant Cash Advance.