What is a merchant cash advance — and how quickly can hospitality businesses get one?

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Quick answer: what you need to know now

A merchant cash advance (MCA) is a quick funding route for UK hospitality businesses that turns future card or takings receipts into immediate cash. MCA providers advance a lump sum and recover repayment as a percentage of daily or weekly card income (or via set direct debit).

TL;DR on speed: initial matching and pre‑checks can happen within hours; lenders often give a formal offer within 24–48 hours if EPOS/card statements and basic documents are ready; funds commonly arrive 24–72 hours after a signed agreement. Exceptional cases can fund same‑day, but times vary by provider, verification and bank cut‑offs.

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We do not lend or give financial advice. We connect you with lenders and brokers. No obligation — free eligibility check.

What is a merchant cash advance?

A merchant cash advance (MCA) is a funding arrangement where a finance provider pays your business an upfront sum in exchange for an agreed share of your future card takings or revenue. Unlike a conventional bank loan with fixed interest and a set term, an MCA is typically repaid by the provider taking a fixed percentage of daily or weekly card income until the advance plus agreed fees is repaid.

Important elements:

• Advance amount: the upfront cash paid to the business (for UK hospitality this is commonly used for sums from around £10,000 and upwards).
• Repayment method: a percentage of card receipts (daily/weekly slice), fixed debit from your business bank account, or a blended arrangement with your card processor.
• Factor rate / repayment multiple: instead of APR, many MCAs use a factor rate (e.g., repay 1.1x–1.6x the advance) — this varies with risk, provider and term.
• Term variability: MCAs don’t always have a fixed term — repaying is tied to sales volumes, so busy periods repay faster and quiet periods slower.

Who uses MCAs? Restaurants, pubs, bars, cafes, hotels and caterers who take a large portion of revenue on cards and need quick access to cash without lengthy bank processes.

Why hospitality businesses use MCAs

The hospitality sector is seasonal, fast‑moving and often cash‑tight. MCAs suit this environment because they prioritise speed and base underwriting on card takings rather than just credit history.

• Urgent repairs or kitchen equipment replacement that can’t wait for lengthy loans.
• Seasonal stock and staffing ahead of busy periods (bank holiday weekends, Christmas, summer tourism).
• Short‑term cashflow bridging between supplier payments and incoming takings.
• Refurbishments or fit‑outs where quick capital unlocks higher revenue potential.

Compared with bank loans: MCAs are faster and more flexible with respect to trading performance, but typically cost more and can strain daily cashflow due to the repayment cadence.

How MCAs are priced — costs explained

MCAs do not usually quote a standard APR. Instead, providers set a factor rate or a fixed repayment multiple. This is simpler to administer but can make direct comparisons to loans harder.

• Factor rate / repayment multiple: many providers charge a total repayment between roughly 1.1x–1.6x of the advance; higher risk or shorter deals trend toward higher multiples.
• No universal APR: because of the variable repayment speed and percentage‑of-sales model, APR can be misleading — ask for an example total cost and equivalent APR for comparison.
• Cost drivers: your average monthly card takings, card vs cash mix, processing history, business age, credit profile and any existing borrowing.

Practical tip: always request a full written cost example showing total repayable, daily/weekly collection amounts and any additional fees (set‑up, early settlement or administration fees).

Typical application process & timeline for hospitality

The MCA process is straightforward — speed depends mainly on how quickly you can supply EPOS/card statements and bank documents.

1. Enquiry / match: Complete a short enquiry form — matching to specialist lenders or brokers often takes minutes to a few hours.
2. Pre‑qualification: Lenders run a quick pre‑check using EPOS/card takings and basic business information — often same day.
3. Documentation: Provide 3–6 months of EPOS/card statements plus recent bank statements and ID — typically 24–72 hours to gather.
4. Offer & agreement: Lender issues an offer and contract; review and sign — usually within 24–48 hours of receiving full docs.
5. Funding: Funds are transferred after the signed agreement — commonly 24–72 hours from signature; same‑day funding is possible in exceptional cases.

Typical timelines (illustrative, not guaranteed):

• Initial matching/pre-check: minutes to several hours
• Formal offer after docs: same day to 48 hours
• Funds sent after signature: 24–72 hours

Variables that slow funding: incomplete documentation, complex ownership or previous finance defaults, weekend/holiday banking cut‑offs, enhanced ID/KYC checks.

Documentation checklist to speed funding

• EPOS or card processing statements (last 3–6 months).
• Business bank statements (last 3 months).
• Company registration details (Companies House number if applicable) and VAT details if registered.
• Photo ID for director(s) and proof of address.
• Details of any existing finance or charge over assets.
• Information on average daily/weekly takings and busiest periods.

Is an MCA right for my hospitality business?

Use this quick checklist to decide if an MCA may suit you:

When an MCA can be a good choice

• You need funds very quickly (days rather than weeks).
• Your sales are card-heavy and predictable enough to support daily/weekly collections.
• You need short-term working capital (repayments reduce during quiet periods automatically).

When to think twice

• If daily collections will squeeze your operating cashflow and make payroll/suppliers difficult.
• If you have cheaper alternative borrowing available (bank overdraft, business loan, asset finance).
• If you want long‑term investment with lower total cost — consider term loans or asset finance.

Alternatives to consider: short‑term business loans, overdrafts, asset finance for equipment, or invoice finance if you invoice trade customers. For a broader comparison of quick options tailored to smaller traders see our small business loans page for related funding routes.

How UK Business Loans helps — quick, no‑obligation matching

We don’t lend — we match your hospitality business to the lenders and brokers most likely to help. Complete a short enquiry and we’ll connect you to partners who specialise in hospitality MCAs and other quick funding options. We typically work with businesses seeking £10,000 and above.

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We do not lend or give financial advice. We connect you with lenders and brokers. No obligation — free eligibility check.

Frequently asked questions

Ready to get a fast quote?

If you run a restaurant, pub, hotel or catering business and need quick working capital, complete our short enquiry form and we’ll match you to lenders and brokers experienced in hospitality funding. It takes under two minutes to get started and there’s no obligation.

Get Quote Now — Free Eligibility Check

Important: UK Business Loans is an introducer. We do not lend or provide regulated financial advice. We connect you with lenders and brokers who may contact you with offers. All finance offers are subject to eligibility and terms — read lender documents carefully and consider independent advice if unsure.

For other routes to quick capital or longer-term funding, compare alternatives on our small business loans page: small business loans.

1. How quickly can a hospitality business get a merchant cash advance (MCA)?
Most UK hospitality businesses can get pre‑qualified within hours and receive funds 24–72 hours after signing (same‑day possible in exceptional cases), depending on documentation and provider.

2. What documents do MCA lenders typically require for restaurants, pubs and hotels?
Lenders usually ask for 3–6 months of EPOS/card processing statements, 3 months of business bank statements, company registration/VAT details and photo ID for directors.

3. How much can I borrow with a merchant cash advance for my hospitality business?
Advance amounts vary with your average monthly card takings but many providers offer MCAs from around £10,000 upwards based on your takings history.

4. How are MCAs priced and how do I compare costs to a loan?
MCAs are usually priced with a factor rate or repayment multiple (commonly 1.1x–1.6x the advance) so ask for the total repayable and an equivalent APR example to compare with loans.

5. Will applying for an MCA affect my personal or business credit score?
Submitting an enquiry through a broker won’t affect your credit score, though some lenders perform soft checks while others may do credit searches later—confirm before proceeding.

6. Are merchant cash advances regulated in the UK?
MCAs sit in a complex regulatory area; brokers and lenders may be FCA‑regulated depending on product structure, so always request full written terms and check the provider’s status.

7. Is an MCA the right option for my hospitality business?
An MCA can suit card‑heavy, seasonal hospitality businesses needing fast, short‑term working capital, but consider cheaper alternatives if daily collections would strain cashflow or you need long‑term finance.

8. Can I repay a merchant cash advance early and will there be a fee?
Some providers allow early settlement but may charge an early settlement fee or offer a reduced settlement figure—get the exact early‑repayment terms in writing.

9. How are MCAs collected from my takings?
Repayments are commonly collected as an automated percentage slice of daily or weekly card takings via your card processor or by agreed direct debit arrangements.

10. How does UK Business Loans help me get an MCA or other quick funding?
UK Business Loans is a free introducer that matches your short enquiry (not an application) to specialist UK brokers and lenders who can contact you—usually within hours—and there’s no obligation to proceed.