Last updated: September 29th, 2026
Bolton Business Finance arranges card machine loans for UK limited companies and partnerships. A card machine loan advances a lump sum, usually 100% to 200% of average monthly card sales, and is repaid as a fixed percentage of every card payment you process until an agreed total is paid. There is no monthly instalment and no interest rate; the cost is one fixed fee set by a factor rate.
Card machine loans are also called PDQ loans, card terminal loans, merchant card machine loans and merchant cash advances. They are the same product. This page covers how the funding works, what it costs, what the “no credit check” claim means in practice, which card providers qualify and when it is the wrong product. The lender list and the full product page sit on our merchant cash advance page.
Written by Marcus Wright, owner and founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed September 2026.
On this page
- What a card machine loan is
- How a card machine loan works
- How much you can borrow against a card machine
- What a card machine loan costs
- Card machine loans with no credit check
- PDQ loans and PDQ funding
- Card machines and providers that qualify
- Eligibility for card machine loans
- Card machine loan compared with a business loan
- When a card machine loan is the wrong product
- How to apply
- Card machine loan questions
The short version
- A card machine loan advances a lump sum against future card sales and is repaid as a percentage of each card transaction, typically 10% to 20%, until a fixed total is paid.
- Lenders on our panel advance 100% to 200% of average monthly card turnover. A business taking £15,000 a month on cards can usually borrow £15,000 to £30,000.
- The cost is a factor rate, not an interest rate. At 1.25, borrowing £10,000 means repaying £12,500. The faster the repayment, the higher the equivalent annual rate.
- Minimum criteria across most UK lenders are three months of trading and around £3,000 a month in card takings. Poor credit is accepted because the lender is buying card sales, not lending against a credit file.
- “No credit check” means a soft search that does not mark the file, not that no check is made. Every lender looks at something.
- The funding works with any UK card acquirer, including SumUp, Dojo, Worldpay, Barclaycard, Zettle, Square, Takepayments, Teya and Tyl by NatWest. Changing provider is not required.
| Item | Detail |
|---|---|
| Amount | £5,000 to several hundred thousand pounds, sized at 100% to 200% of average monthly card sales |
| Repayment | A fixed percentage of each card transaction, typically 10% to 20%, taken at source or by direct debit |
| Cost | Factor rate of 1.15 to 1.40 across our panel. No arrangement fee, no early repayment charge, no broker fee |
| Term | None fixed. Most facilities clear in six to twelve months |
| Speed | Decision in principle same day with statements. Funds one to five working days after signing |
| Security | Future card receivables plus a director’s personal guarantee. No property charge |
| Credit | Defaults, CCJs and past business failures considered. Undischarged bankruptcy and live insolvency are not |
| Minimum criteria | UK limited company or partnership, three months trading, around £3,000 a month in card takings |
What a card machine loan is
A card machine loan is the purchase of a fixed amount of your future card receivables at a discount, not a loan in the legal sense. The lender pays you £10,000 today in exchange for the right to collect, say, £12,500 of your future card takings. Because it is a sale of receivables rather than a credit agreement, it carries no APR, it usually sits outside Financial Conduct Authority regulation, and it does not appear on your balance sheet in the way a term loan does.
That structure explains the rest of the product. The lender’s security is your card turnover, so the decision rests on your card statements far more than on your credit file. Repayment tracks your sales, so a slow month means a smaller repayment. The cost is fixed at the outset, so paying off early does not save money in the way it would on a loan.
Six names for the same product
| Term | Meaning |
|---|---|
| Card machine loan | The general term. Funding repaid from card machine takings. |
| Merchant cash advance | The industry name. Same product, used by lenders and brokers. |
| PDQ loan or PDQ funding | PDQ is an older name for a card terminal. Same product. |
| Card terminal loan | Same product. |
| Credit card machine loan | Same product. The machine takes debit cards too and lenders count both. |
| Merchant loan or merchant loan advance | Sometimes the same product, sometimes a fixed repayment loan sized on card turnover. Ask which. |
| Business cash advance or revenue based finance | The same mechanism applied to all revenue, not just card sales. Used for online and platform businesses. |
How a card machine loan works
A card machine loan runs in five stages from statements to final repayment, and the whole process usually takes under a week to fund.
- You send three to six months of card statements. The lender is looking at average monthly card turnover, how steady it is, and how long you have been trading.
- The lender makes an offer with three numbers. The advance (what you receive), the factor rate (which sets the total you repay) and the sweep (the percentage of each card sale that goes to the lender).
- Funds arrive. Usually within one to five working days of signing.
- Repayment starts with your next card sale. Either your acquirer splits each settlement at source and pays the lender’s share directly, or the lender collects a daily or weekly amount by direct debit calculated from your reported takings.
- It ends when the total is repaid. There is no fixed term. Strong months finish it faster, weak months stretch it out. Most clear in six to twelve months.
Worked example
| Item | Figure |
|---|---|
| Average monthly card sales | £15,000 |
| Advance | £15,000 |
| Factor rate | 1.25 |
| Total to repay | £18,750 |
| Sweep | 15% of each card sale |
| Repayment in a £15,000 month | £2,250 |
| Repayment in a £10,000 month | £1,500 |
| Time to clear at £15,000 a month | About 8.3 months |
The cost of the funding in this example is £3,750, fixed on day one. Clearing it in six months still costs £3,750. Taking twelve months still costs £3,750. Our factor rate calculator runs the same arithmetic on your own figures.
How much you can borrow against a card machine
Lenders on our panel advance between 100% and 200% of average monthly card takings, with the top of that range reserved for businesses with a long, steady card history. Card machine loans are sized on card turnover alone, not on total turnover and not on anything you own. A cafe taking £8,000 a month on cards is looking at £8,000 to £16,000. A restaurant taking £40,000 a month could see £40,000 to £80,000. Facilities run from about £5,000 upwards, and the practical floor is the minimum turnover requirement of around £3,000 a month.
Two things reduce the figure. A short trading history, because the lender has less data to trust. And a high proportion of cash or bank transfer sales, because the lender can only take repayment from the card stream, so a business turning over £50,000 a month but taking only £10,000 of it on cards is sized on the £10,000.
What a card machine loan costs
Factor rates across our panel run from about 1.15 to 1.40. Multiply the advance by the factor rate to get the total repaid; the difference is the cost. There are usually no arrangement fees, no early repayment charges and no broker fee, so the factor rate is the whole price.
| Factor rate | Total repaid | Cost |
|---|---|---|
| 1.15 | £11,500 | £1,500 |
| 1.25 | £12,500 | £2,500 |
| 1.40 | £14,000 | £4,000 |
The comparison with a loan needs stating plainly. £2,500 to borrow £10,000 looks like 25%. Repaid over twelve months it is roughly equivalent to a loan at around 45% APR, because you did not have the full £10,000 for the full year. Repaid in six months the equivalent is higher again. A card machine loan is not cheap money. It is fast, flexible money for businesses that cannot get a bank loan or need funds faster than a bank will move, and it should be judged on that basis. A business that qualifies for a term loan and can wait for it will usually pay less on the term loan.
Card machine loans with no credit check
No UK lender advances money with no check at all, and the phrase “no credit check” in advertising means one or both of two things in practice.
- A soft search rather than a hard search. The lender looks at the file but leaves no footprint other lenders can see, so applying does not damage your score.
- The credit file is not the deciding factor. The lender is buying card sales. If statements show £15,000 a month through the terminal for the last year, a default from three years ago matters much less than it would to a bank.
What lenders accept and what they do not
- Accepted with a strong card history: defaults, CCJs, previous business failures, thin credit files, directors who have been declined by their bank.
- Not accepted: undischarged bankruptcy, a live winding up petition, or CCJs that are not being dealt with.
Card machine loans are therefore available to businesses a bank would decline in the first minute, because the card turnover does the work. Our no credit check page goes into the detail.
PDQ loans and PDQ funding
A PDQ loan is a card machine loan under an older name. PDQ stood for Process Data Quickly and was the trade name for the first generation of card terminals in the UK, and older business owners and some lenders still use it. PDQ loan, PDQ funding and PDQ cash advance all mean funding repaid from card terminal takings, which is what this page describes. Nothing about the product changes because of the name.
Card machines and providers that qualify
Every UK card acquirer qualifies, because the lender funds against the settlements your card provider pays into your bank account and every acquirer produces a statement that shows them. The provider affects the mechanics of repayment, since some acquirers split settlements at source and others do not, in which case the lender collects by direct debit. It does not affect eligibility.
We have a page for each of the main providers, including SumUp, Dojo, Worldpay, Barclaycard, Zettle, Square, Takepayments and Elavon. The full list is on the merchant cash advance page.
The brand on the physical machine is often not your card provider. Verifone and Ingenico make terminals that are supplied by acquirers such as Worldpay or Global Payments, and it is the acquirer’s statement the lender wants. To find your acquirer, look at who pays the card settlements into your bank account.
Online businesses qualify on the same basis. Card sales through Stripe, Shopify or a payment gateway are treated the same way, and lenders in that space usually call it revenue based finance rather than a card machine loan.
Eligibility for card machine loans
Eligibility for a card machine loan comes down to trading history and card turnover, with the credit file a secondary factor.
Minimum criteria across our panel
- UK limited company or partnership, trading for at least three months. Some lenders want six.
- Around £3,000 a month or more in card takings, shown on statements.
- Most sectors accepted. Hospitality, retail, salons, garages, takeaways, trades and healthcare practices make up the bulk of the market.
- Poor personal or business credit considered. Undischarged bankruptcy and live insolvency proceedings are not.
- No property security and no need to be a homeowner. Most lenders ask for a personal guarantee from the directors.
- Funds for any legitimate business purpose: stock, refurbishment, tax bills, staff, equipment, a second site, or replacing a more expensive facility.
Card machine loan compared with a business loan
A card machine loan trades cost for speed and flexibility. An unsecured business loan is cheaper for a business that qualifies and can wait.
| Feature | Card machine loan | Unsecured business loan |
|---|---|---|
| Repayment | Percentage of card sales, flexes with trade | Fixed monthly instalment |
| Cost | Factor rate 1.15 to 1.40, fixed fee | Interest, typically 8% to 25% APR across our panel |
| Speed | One to five days | Three days to three weeks |
| Credit file | Secondary to card turnover | Central to the decision |
| Term | None fixed, usually six to twelve months | One to six years |
| Early repayment | No saving, cost is fixed | Usually saves interest |
| Suits | Card heavy trade, weak credit, urgent need | Longer term investment, strong credit, time to apply |
Our business loan page covers the term loan route. Where a business qualifies for both, the choice comes down to whether the cost of speed is worth paying.
When a card machine loan is the wrong product
A card machine loan is the wrong product in five common situations, and in each there is a cheaper or safer route.
- Card sales are a small share of turnover. Where most revenue is invoiced or paid by bank transfer, the advance will be small and invoice finance or a term loan will fund more.
- The need is long term. A card machine loan is priced for six to twelve months. Funding a three year fit out with one, then renewing it twice, is an expensive way to borrow.
- The money is buying an asset. Kitchen equipment, vehicles and machinery are cheaper to fund on asset finance, where the asset itself is the security.
- Margins are thin. A 15% sweep on a business running a 10% net margin means every card sale during the repayment period loses money.
- It is a second advance to service the first. See the warning below.
Stacking
Taking a second card machine loan from a different lender while the first is still running is called stacking. Two sweeps on the same card stream can take 30% or more of every sale, and it is the point at which this product starts to damage a business rather than help it. A business that needs more than its first advance provided should speak to the original lender or to us before going elsewhere.
How to apply
Applying takes your last three to six months of card statements and your last three months of business bank statements. We will say the same day which lenders will look at it and roughly what they will offer. There is no broker fee on merchant cash advance applications; the lender pays us.
Tell us your monthly card takings
Send the details and we will come back to you, usually within 24 hours, with the lenders that are realistic for your card turnover and what each is likely to cost.
Card machine loan questions
Can I borrow money on my card machine?
Yes, if you are a UK limited company or partnership trading for three months or more and taking around £3,000 a month or more on cards. The lender advances a lump sum against your future card sales and takes a percentage of each transaction until it is repaid. The sales going through the machine are the security, not the machine itself.
How quickly can I get a card machine loan?
With card and bank statements ready, a decision in principle usually comes the same day and funds arrive within one to five working days of signing. Some lenders fund within 24 hours for straightforward cases. The delay is almost always the applicant gathering paperwork rather than the lender.
Do I have to change my card machine provider to get funding?
No. Independent lenders fund against any UK card acquirer, including SumUp, Dojo, Worldpay, Barclaycard, Zettle, Square, Takepayments and Teya. Some providers offer their own advance product and may imply a switch is needed. It is not, and an offer from your provider is worth comparing against the wider market before accepting.
What happens if my card sales drop while I am repaying?
Repayments drop with your sales, because you pay a percentage of each card transaction rather than a fixed amount. The total owed does not change, so the facility takes longer to clear. Some agreements include a minimum monthly payment, so check before signing. If sales stop entirely, most lenders restructure rather than pursue, but the personal guarantee means the directors remain liable.
Is a card machine loan regulated by the FCA?
Generally not. It is structured as a purchase of future card receivables rather than a loan, so it usually falls outside the Financial Conduct Authority’s consumer credit regime. That is why it carries a factor rate rather than an APR and why the application is faster. It also means fewer protections, so read the agreement and check for minimum payments before signing.
Is a PDQ loan the same as a card machine loan?
Yes. PDQ was the trade name for early UK card terminals and stood for Process Data Quickly. PDQ loan, PDQ funding and PDQ cash advance all describe funding repaid from card terminal takings, which is a merchant cash advance under another name. Nothing about the product, the cost or the eligibility changes with the label.
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd. He has worked in financial services since 2008, beginning his career at Santander, and has been a commercial finance broker since March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders.
Marcus arranges commercial mortgages, bridging, development finance, business loans, asset finance, invoice finance and merchant cash advances. Call 0161 546 9128.
Marcus is also the author of UK Commercial Finance (2026), a commercial finance book for UK business owners and property investors.
Bolton Business Finance Ltd is an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. Figures on this page are illustrative and are not an offer or a quotation. We may receive a commission from the lender we introduce you to. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.