Can I consolidate card‑settlement advances with stacked short‑term facilities?
Short answer: Often — but it depends. You can sometimes consolidate card‑settlement (merchant) advances and multiple stacked short‑term facilities into a single refinance or restructure that eases daily deductions and improves cashflow, however eligibility, costs and structure depend on your contracts, acquirer arrangements, and lender appetite. Complete a Free Eligibility Check to see options tailored to your business.
Quick summary
Consolidation is possible in many cases: lenders can refinance multiple card‑settlement advances (often called merchant cash advances or MCAs) and stacked short‑term facilities into a single medium‑term loan or a package of finance that reduces daily/weekly repayment pressure. Key constraints are existing MCA contracts (factor rates and exit fees), daily acquirer holdbacks, and how many active facilities are “stacked.” The best next step is to gather merchant statements and MCA contracts and request a free eligibility check so specialist brokers and lenders can assess a tailored refinance solution. Get Quote Now — Free Eligibility Check
What are card‑settlement advances and stacked short‑term facilities?
Card‑settlement advances / Merchant Cash Advances (MCAs)
Card‑settlement advances (often described as merchant cash advances) are short‑term business funding where repayment is taken from a percentage of daily card takings (managed via the card acquirer or payment processor). They are attractive for quick access to cash, but typically carry high factor rates and daily/weekly deductions that squeeze working capital.
Stacked short‑term facilities
“Stacked” facilities means a business has taken multiple short‑term products at different times (for example several MCAs, bridging loans, or same‑day merchant advances) that overlap in repayment. Stacking increases overall deduction percentages and creates a complex repayment profile lenders see as elevated risk.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
- Repayment method: daily/weekly card take‑outs vs fixed monthly instalments
- Typical term: short (weeks to months) for MCAs; short‑term bridging may be months
- Cost: factor rates rather than APRs — often higher than term loans
- Operational impact: daily deductions reduce usable cashflow and can harm suppliers/payments
Can you consolidate them? A clear, practical answer
Yes — in many cases consolidation is possible, but outcomes vary. Consolidation usually takes one of two forms: (1) a specialist refinance that pays out existing MCAs and replaces daily deductions with a single fixed repayment, or (2) a medium‑term loan or invoice/asset finance facility that services existing obligations and frees up daily card receipts.
What determines if consolidation will work for you:
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
- Acquirer or payment processor controls: some MCAs are repaid via a direct remittance from the acquirer (lockbox or split remittance). Lenders must secure acquirer consent or design a structure reflecting holdbacks.
- Existing contract terms: factor rate, early settlement fee and whether the MCA provider allows transfer or settlement by a third party.
- Size & timing of stacked facilities: many small overlaps are easier to refinance together than very recent high‑rate advances with punitive exit charges.
- Business cashflow and card takings history: lenders assess the combined daily deduction burden and the sustainability of repayments post‑refinance.
Examples — when consolidation works and when it doesn’t
Possible: A retailer with three MCAs totalling £75,000 repaid as percentages of card takings. A specialist refinance lender offers a 24‑month term loan with fixed monthly repayments, pays the MCAs, and reduces daily pressure — total monthly cashflow improves despite longer term cost.
Less likely / complex: A hospitality group with an MCA paid via a dedicated acquirer lockbox that expressly prohibits third‑party settlement without acquirer consent. Lenders may require acquirer sign‑off or propose alternative security such as debtor‑based finance.
Common consolidation structures used in the UK
- Specialist MCA refinance — lenders or funds that buy MCAs and replace daily deductions with fixed repayments.
- Medium‑term business loan — a term facility (12–60 months) that repays MCAs and spreads cost; often secured, with lower day‑to‑day impact.
- Invoice finance or debtor‑backed loan — for businesses with receivables, this can replace MCAs while matching repayments to cash inflows.
- Bridging + refinance — short bridge to settle complex MCA arrangements quickly, then refinance to a longer term.
| Feature | MCA refinance | Medium‑term loan | Invoice finance |
|---|---|---|---|
| Repayment | Fixed (after purchase) | Monthly instalments | Advance on invoices |
| Typical term | 12–36 months | 12–60 months | Ongoing |
| Pros | Quick relief from daily deductions | Predictable payments, longer term | Matches cashflow to sales |
| Cons | May still be costly | Longer overall cost | Requires invoiceable sales |
Lender criteria & what brokers look for
Lenders and brokers assess the combined picture: how much is outstanding, how repayments are collected, and whether your post‑refinance cashflow covers the proposed repayment.
Typical assessment points:
- Recent business bank statements (3–6 months)
- Merchant statements / acquirer reports showing card takings and deductions
- Copies of MCA/advance contracts (showing factor rates, exit fees)
- Turnover, margins and trading history (minimum threshold often applies; UK Business Loans generally arranges facilities from around £10,000 and upwards)
- Security / guarantees available
When there are multiple stacked facilities, underwriters will map the combined repayment percentage and stress‑test the business for seasonal dips. Brokers can sometimes negotiate acquirer consents or structure blended solutions.
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
Costs, risks and tax considerations
Key cost drivers:
- Early settlement fees charged by existing MCA providers.
- Purchase price / discount a refinance lender pays to settle MCAs.
- Arrangement fees, legal costs and any acquirer admin charges.
Risks to watch for:
- Extending term can reduce short‑term pressure but increase overall cost.
- Personal or director guarantees may be required for refinancing.
- Failing to obtain acquirer consent when needed can delay settlement.
Tax position: interest on business borrowing is typically deductible, whereas the accounting treatment of factor fees differs — get your accountant’s view before you restructure. This information is general only and not a substitute for regulated tax advice.
Step‑by‑step consolidation checklist
- Gather merchant statements, bank statements and all MCA contracts.
- Prepare a simple cashflow model showing current daily deductions vs proposed repayments.
- Check contracts for early settlement terms and vendor assignment clauses.
- Request quotes from specialist MCA refinance lenders and mainstream lenders via brokers — compare all‑in cost.
- Consider acquirer consents and any operational changes needed to receive funds.
- If acceptable, proceed with chosen refinance and close old facilities.
Alternatives to consolidation (when consolidation isn’t best)
- Negotiate repayment terms with existing MCA providers — some will agree staged settlements.
- Request temporary reductions in daily percentage during low season.
- Move to invoice finance or debtor finance if receivables support it.
- Replace a portion of stacked facilities with asset finance secured against equipment.
If you’re unsure which path suits you, a quick matching enquiry will show the options lenders and brokers can offer. Get Started — Free Eligibility Check
How UK Business Loans helps
We don’t lend directly. Instead we match businesses with specialist brokers and lenders who understand MCAs, acquirer arrangements and stacked facilities. Submit a short enquiry (it’s not an application — just information to help lenders assess fit) and we’ll connect you to partners who can provide quotes and next steps.
- Fast matching — typically within 24–48 hours
- Access to specialist MCA refinance and mainstream lenders
- Support arranging offers from around £10,000 upwards
Start Your Free Eligibility Check
For more on refinancing options, see our resource on /refinance-loans.
FAQ
- Will consolidation lower my daily/weekly deductions?
- Often yes — moving to a fixed monthly repayment or longer‑term loan usually reduces or removes daily card deductions. However, it can increase total cost over time. Compare all‑in figures and cashflow impact.
- Can I consolidate MCAs from multiple providers at once?
- Yes. Lenders typically ask for full schedules and contracts so they can assess combined risk. Consolidation is common where multiple MCAs create unsustainable daily deductions.
- Will consolidating affect my credit score?
- Submitting a matching enquiry on our platform does not affect your credit score. Lenders may carry out credit checks if you progress a formal application.
- How long does a refinance take?
- Timescales vary: a straightforward MCA refinance can complete in days if documentation and acquirer consents are in place; complex cases can take several weeks.
- Is UK Business Loans a lender?
- No — we introduce enquiries to specialist brokers and lenders. Our service is free and without obligation. The enquiry form is for matching only, not an application.
Next steps & clear call to action
Ready to explore whether consolidation can help your business? Gather your merchant statements and MCA contracts, then complete our short enquiry. We’ll match you to the most suitable lenders and brokers who can give an honest quote — free and with no obligation.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
1. Can I consolidate merchant cash advances (MCAs) and stacked short‑term facilities into one loan?
Yes — many businesses can refinance multiple MCAs and short‑term facilities into a single medium‑term loan or specialist MCA refinance to reduce daily deductions, subject to contracts, acquirer arrangements and lender appetite.
2. How long does an MCA consolidation or refinance usually take?
A straightforward MCA refinance can complete in days with documentation and acquirer consents in place, while more complex stacked facilities or acquirer negotiations can take several weeks.
3. Will consolidating MCAs lower my daily/weekly card deductions?
Often yes — consolidation typically replaces percentage‑based daily deductions with a fixed monthly repayment or blended structure, though it may increase total cost over a longer term.
4. What documents do lenders and brokers need to assess consolidation eligibility?
Lenders commonly request recent bank statements, merchant/acquirer statements, all MCA contracts (showing factor rates and exit fees) and turnover/trading history to assess risk and structure a refinance.
5. Can acquirers or payment processors block consolidation or third‑party settlement?
Sometimes — some acquirers use lockbox or split remittance arrangements that require acquirer consent for third‑party settlement, and lenders may need to obtain that consent or design alternative structures.
6. How much will consolidation cost and what fees should I expect?
Costs vary but typically include early settlement or exit fees from MCA providers, the refinance lender’s purchase/discount price, arrangement/legal fees and any acquirer admin charges, so compare all‑in figures before proceeding.
7. Will refinancing MCAs affect my business or director credit score?
Submitting an initial matching enquiry with UK Business Loans won’t affect your credit score, though individual lenders may carry out credit checks if you progress to a formal application.
8. What are alternatives if consolidation isn’t suitable for my business?
Alternatives include negotiating staged settlements or temporary reductions with MCA providers, switching to invoice/debtor finance, or replacing part of the stack with asset finance depending on your receivables and assets.
9. How much funding can UK Business Loans help me access for consolidation or refinance?
UK Business Loans matches businesses to lenders offering a wide range of facilities — typically from around £10,000 up to multi‑million amounts depending on lender criteria and security available.
10. Is the enquiry form on UK Business Loans a loan application or binding agreement?
No — the enquiry form is not an application; it simply collects information to match your business with suitable brokers and lenders for a free eligibility check and no‑obligation quotes.