What Is An MCA?

In commercial finance an MCA is an abbreviation that stands for Merchant Cash Advance.

An MCA is a type of specialist business finance available to businesses that take debit and credit card payments. An MCA lender advances a percentage of average card takings to the merchant, and repayments are made as a percentage of future card takings rather than as fixed monthly instalments.

How an MCA works in practice

Advances across the UK market run from £5,000 to £2 million, typically 1 to 1.25 times average monthly card turnover and up to 2 times at the top end. The lender then takes an agreed percentage of daily card takings, anywhere from 1% to 26%, until the advance and its fixed fee are repaid. Most facilities clear within 6 to 12 months.

Cost is expressed as a factor rate rather than an interest rate, generally between 1.03 and 1.35 as at September 2026, with most cases between 1.10 and 1.25. The total is fixed at the outset and does not reduce if you repay early.

Because repayment moves with takings, a quiet month costs less than it would on a fixed term loan. That flexibility is the main reason businesses with seasonal or variable card sales use it. The trade is that an MCA is usually more expensive than a conventional business loan, so the question is whether the flexibility and speed are worth the difference.

Typical eligibility is 3 months trading and £5,000 a month in card revenue. You do not need to be a homeowner, and a low credit score does not automatically rule you out, because the decision rests mainly on the card turnover coming through the terminal or gateway.

Related terms

See also factor rate, which is how MCA pricing is quoted.

For lender types, eligibility, costs and the payment providers that can be funded against, see merchant cash advances. To work out the cost of a specific advance, use the factor rate calculator.

Bolton Business Finance is an independent merchant cash advance broker. There is no broker fee on an MCA. Call 0161 546 9128.

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Simon Johnson

Simple, easy and professional. Listen to business requirement and found the perfect funding solution. Thank you...!

Ihsan Gungor

Great help and fast

Hassan Raza

Many Thanks Marcus for arranging funds for my business despite having several challenges on credit file.

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Gerad Barclay

Exemplary Business Finance Service Bolton Business Finance and its MD Marcus Wright are professional and an example to others in the industry. Strongly recommended. Most business people searching for a business finance broker will have dealt with Estate Agents, Recruitment Agencies, or both. You know the types; recruitment “consultants” that try to palm you off with unsuitable candidates having doctored the CV to look great, or estate agents that assure you the enquirer is a “Cash Buyer” or in a fabulous position when in fact they have not even got an offer yet for their overpriced property. Many Business Finance Brokers are as above, probably worse. They work the numbers game of collecting applicants then punt the applicants around the types of lenders that want to tie you down with crazily high interest rates, unviable repayment terms and the ubiquitous PG. My advice is to look out for these shady practitioners. They want your personal ID, 6 months Bank Statements and annual accounts before even discussing solutions to your problem. They have only a passing conversational interest in your business. Be especially alert to the additional introduction “Fee” for getting to offer stage. One such broker added a 5% fee unto an already sky-high rate of interest front-loaded unto the principle, no reduction for early settlement, and of course the dreaded PG. Try getting 5% Interest per year on deposit of £200,000…. It is currently almost impossible yet, some brokers want 5% (£10,000 on that £200K) just for the introduction. That’s 3–5 times what Estate Agents will charge, and they typically must do some work and wait 6 months for the transaction to complete. The broker may well have punted your most personal details by email to any number of lenders leaving you exposed in many ways. Marcus did none of the above. He listened to the requirements. Noted preconditions, made no promises but came back very quickly with imaginative propositions. Very personal details and confidential information were requested only when there was agreement in principle. I will certainly use again.

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Great company to deal with. Marcus is a great guy and knows what he’s doing. They helped me with factoring my invoices on Courier Exchange. Very seem less process. Highly recommend.