Merchant Cash Advance for online businesses

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Libby James
Merchant Services Expert

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

Understanding Merchant Cash Advance

If you are an online business owner looking for flexible financing options, a Merchant Cash Advance (MCA) could be the solution you need. At Merchant Advice Service, we understand the unique challenges faced by online businesses and strive to provide user-focused financial advice. In this article, we will explain what a Merchant Cash Advance is, how it can benefit your online business, and answer frequently asked questions to help you make an informed decision.

What is a Merchant Cash Advance?

A Merchant Cash Advance is a financing option designed specifically for businesses that accept card payments, including online businesses. Unlike traditional loans, an MCA is not based on your credit score or collateral. Instead, it provides you with an advance based on your future card sales. The repayments are made as a percentage of your daily card transactions, making it a flexible and convenient option for online businesses.

Benefits of a Merchant Cash Advance for Online Businesses

Flexible Repayments: One of the key advantages of a Merchant Cash Advance is the flexibility it offers in repayment. As the repayment is directly linked to your card sales, you will pay back more during busy periods and less during quieter months. This ensures that your repayments align with your cash flow, providing you with breathing space during slower periods.

Quick Access to Funds: Online businesses often require fast access to funds for various reasons, such as purchasing inventory, marketing campaigns, or expanding the business. With a Merchant Cash Advance, you can typically receive the funds within a short timeframe, allowing you to seize opportunities and meet your business needs promptly.

No Fixed Monthly Payments: Unlike traditional loans, a Merchant Cash Advance does not involve fixed monthly payments. Instead, a small percentage is automatically deducted from your daily card sales until the advance is repaid. This eliminates the burden of fixed payments, giving you greater flexibility to manage your cash flow.

Simple Application Process: Applying for a Merchant Cash Advance is straightforward and hassle-free. The requirements are generally less stringent compared to traditional loans, making it accessible to online businesses. The application process is often online-based, and the approval decision is typically faster, saving you time and effort.

Frequently Asked Questions (FAQs)

Commonly Asked Questions
Is a good credit score necessary for a Merchant Cash Advance?
A good credit score is not a primary requirement for a Merchant Cash Advance. The advance is based on your card sales, so your credit score will have minimal impact on the approval decision.
How much can I borrow through a Merchant Cash Advance?
The amount you can borrow depends on your average monthly card sales. Typically, lenders offer advances ranging from £2,500 to £300,000 or even higher, depending on your business’s card transaction volume.
How long does it take to repay a Merchant Cash Advance?
The repayment period varies depending on the lender and the terms of the agreement. However, it is typically repaid through a fixed percentage deduction from your daily card sales until the advance is fully repaid.
Can I use a Merchant Cash Advance for any purpose?
Yes, a Merchant Cash Advance can be used for various business purposes, such as purchasing inventory, investing in equipment, marketing campaigns, or managing cash flow.
Will my personal assets be at risk with a Merchant Cash Advance?
Merchant Cash Advance is unsecured, meaning your personal assets are not at risk. However, it is essential to review the terms and conditions of the agreement to understand any potential liabilities.
What are the typical interest rates for a Merchant Cash Advance?
Merchant Cash Advances do not involve traditional interest rates. Instead, the lender charges a factor rate, which represents the total repayment amount. The factor rate is typically expressed as a decimal or percentage and varies based on factors such as your business’s performance and risk assessment.
Can I get a Merchant Cash Advance if I have bad credit?
Yes, even if you have bad credit, you may still be eligible for a Merchant Cash Advance. Since the advance is based on your card sales, lenders often consider the overall health and performance of your business rather than solely relying on your credit score.
Can I switch my Merchant Cash Advance provider?
Switching your Merchant Cash Advance provider is possible, but it depends on the terms and conditions of your existing agreement. It is recommended to review the terms and seek professional advice before making any changes.

How Merchant Advice Service Can Help

A company can borrow using a Merchant Cash Advance facility providing it’s for business purpose. This includes to improve cashflow issues, renovations, stock and supplies, investments into machinery etc

At Merchant Advice Service, we specialise in providing tailored financial solutions for online businesses. Our team of experts understands the unique needs of online entrepreneurs and can help you navigate the complexities of Merchant Cash Advances. Whether you have questions, need guidance in choosing the right lender, or require assistance with the application process, we are here to support you every step of the way. Visit our Merchant Cash Advance page to learn more about how we can help your online business thrive.

For more advice like this, visit our blog page!



Navigating the world of business financing can be a complex task, especially for UK businesses operating online. However, a Merchant Cash Advance offers a flexible and straightforward funding option that aligns with your cash flow. Unlike traditional business loans, it doesn’t rely heavily on credit scoring and offers quick access to funds, often within 24 hours. This makes it an ideal choice for those looking to invest in products or services, manage card transactions, or even kickstart an affiliate marketing campaign as part of their business plan.


The application process is simple, and you can apply for a merchant cash advance with minimal fuss. With no fixed monthly payments and the ability to use the funds for a variety of business needs, it’s a versatile solution for short-term business funding. Merchant Advice Service specialises in helping online entrepreneurs understand how merchant cash advances work and can guide you through every step, ensuring your business models benefit from the best interest rates and terms available.


So, if you’re starting an online business or looking to expand, consider a Merchant Cash Advance as one of your key funding options. For more insights like this, don’t forget to visit our blog page.

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Libby James

Libby James Co-founded Merchant Advice Service alongside David Bird in 2016. Her finance background, coupled with retail and customer service experience, gave Libby the drive to bring transparency and non-biased advice to the world of merchant services. Having come from the heavily regulated mortgage and insurance industry, Libby found it puzzling that other financial sectors lacked regulation and transparency leaving customers confused and unable to make informed decisions when it came to accepting card payments. This was soon to become Libby’s obsession!

With the help of some of the industry’s best, Libby began to research acquiring banks, complex terminology/regulation, and the problems customers experience within merchant services and payment gateway markets. She spent years on sourcing solutions for complex clients, which previously others were unable to assist with. Libby established relationships with brokers and banks which would soon form the cornerstone of Merchant Advice Service. As a result Libby has been featured in high-profile publications across the web.

Libby is proud to be the entrepreneur’s champion, supporting start-up businesses regularly. Her industry insights can often be found on LinkedIn where she provides free of charge advice and money saving pointers. It’s safe to say she has her finger on the pulse of everything card payments related.

Libby speaks of her experience in founding and running Merchant Advice Service…

‘Merchant Advice Service is one of my greatest achievements to date. We help business owners to overcome card processing issues which can become detrimental to their business. We assist SME’s in finding suitable card payments solutions, helping them create their vision. Each and every day is different, exciting and fore filling. As technology advances I can’t wait to see the way in which the merchant services market advances, and I’m pleased that our business will play a part in educating company owners along the way.’

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