What lenders typically weigh
For this situation, UK SME lenders typically weigh a small set of signals more heavily than others. The strength of each lever affects which lenders will look at the case and what terms you might expect:
- Monthly card volume
- Most MCA providers want at least £2,500–£5,000 of monthly card sales; larger advances need £10k+ monthly card revenue.
- Card processor identity
- Some lenders are exclusive to specific processors (Shopify Capital, Square Loans, PayPal Working Capital, SumUp Cash Advance). Others integrate with most major processors.
- Card-sale consistency
- Lenders look at trailing 3–12 months of receipts. Strong consistent volume unlocks larger and cheaper advances; volatile volume reduces both.
- Sector and merchant category code
- Some MCA providers exclude certain merchant categories (adult, gambling, regulated). Mainstream retail, hospitality and personal services are well-supported.
- Existing MCA stacking
- An existing MCA being repaid is usually allowable but reduces the size of a new advance. Multiple stacked MCAs become a blocker.
Finance types that usually fit this situation
Merchant Cash Advance
Cash advance repaid as a share of card/POS/platform sales.
Revenue-Based Finance
Growth capital repaid flexibly against future revenue.
UK lenders that often look at this situation
The lenders below publish criteria consistent with this situation. Final approval is always subject to lender underwriting.
Liberis
Business Cash Advance
- Amount
- £500–£1m; flexi up to £2m via partners
- Speed
- Minutes via partner
- Security / PG
- Not clearly disclosed
- Data confidence
- Medium
YouLend
Sales-based funding
- Amount
- Up to 2x monthly revenue
- Speed
- Offer <24h; funding ~48h
- Security / PG
- Not disclosed
- Data confidence
- Medium
PayPal
Working Capital
- Amount
- Not disclosed
- Speed
- Online eligibility
- Security / PG
- No traditional collateral disclosed
- Data confidence
- High
Square
Square Loans
- Amount
- £100–£250k
- Speed
- 1–2 business days
- Security / PG
- Not disclosed
- Data confidence
- Medium
SumUp
Cash Advance
- Amount
- £500–£100k
- Speed
- In-app offer
- Security / PG
- Not disclosed
- Data confidence
- Medium
Shopify
Shopify Capital
- Amount
- £400–£2m cash advances; £200–£1m loans
- Speed
- Not disclosed
- Security / PG
- Not disclosed
- Data confidence
- Medium
Capify
Small business loan
- Amount
- £5k–£1m
- Speed
- Not clearly disclosed
- Security / PG
- Unsecured marketed
- Data confidence
- High
If you can't qualify yet
If card sales alone aren't sufficient, the most common gap is volume. Build at least £5,000 monthly card volume on a supported processor before applying, keep the trailing pattern consistent (avoid spikes and drops), and consider whether a different product fits better — invoice finance for B2B businesses, revenue-based finance for ecommerce, or a small unsecured loan for the broader cashflow gap. Stacking multiple MCAs simultaneously is a stronger blocker than not having one — repay before applying again where possible.
Frequently asked questions
- How much card revenue do I need to qualify for an MCA?
- Typical minimums sit around £2,500–£5,000 monthly card revenue. Platform-native products like Shopify Capital and PayPal Working Capital can go lower because their own data drives underwriting.
- Is MCA cheaper than a business loan?
- Not usually on headline cost. The headline factor rate on MCA looks higher than the APR on a term loan. But for very short cycles (under 6 months) the total repayment can be similar because there are no fixed monthly commitments. Match the product to the cashflow pattern.
- What if my card sales are seasonal?
- MCA repayments flex with daily sales, so quieter months pay down less. This natively fits seasonal retail and hospitality. Some lenders explicitly market against this pattern for pre-Christmas stock buying.
- Will an MCA show on my credit file?
- Some MCA providers report to commercial credit bureaux; others don't. Personal guarantees create a contingent liability but typically don't show unless called upon. Confirm with the lender at application.
- Can I use card sales from multiple processors?
- Some lenders aggregate across processors via open banking; others restrict to the processor they integrate with. Card-processor-agnostic providers like Liberis and YouLend look at total business card volume.