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MERCHANT CASH ADVANCE

Use your future sales to boost your business

  • Apply in minutes and get funds in as little as 48 hours

  • Borrow anything from £5k up to £1million

  • Pay back flexibly, as a percentage of your sales

  • Boost your cash flow during quiet trading periods

Apply now

Tide has joined forces with Funding Options, becoming the largest credit marketplace in the UK. 

Providing over £750 million in funding to more than 16,000 businesses, we’re on a mission to help business owners grow with confidence. 

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What is a merchant cash advance?

A merchant cash advance is a type of flexible funding for businesses who take payments via credit or debit card, but may lack the credit history or collateral required for traditional loans.

Funding comes with a fixed fee and you pay it back automatically via a pre-agreed percentage of your sales until it has been paid off.

Unlike traditional business loans, you don’t need to provide security, making them an attractive option for businesses without many assets.

Apply now

How does a merchant cash advance work?

With a merchant cash advance, your payments are directly linked to your sales. So if your sales fall, your payments automatically fall too. Here’s how it works:

Receive a tailored offer

The offer you receive will be based on your recent sales revenue.

Agree funding fee

You’ll pay one fixed fee only, with absolutely no hidden costs.

Choose payment %

You and the lender will agree on the percentage of your future sales that will go towards repayments.

Pay back automatically

At the end of each day the agreed percentage goes towards paying your balance.

Repeat until finished

Payments end automatically unless you apply to renew the advance.

Apply now
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How can a merchant cash advance help your business?

Merchant cash advances are a great way for small businesses to get the capital injection needed to scale, or to cover emergencies. 

You can also use a merchant cash advance for business expenses, such as: 

  • Site expansions/renovations

  • Equipment purchases

  • Marketing and future projects

  • Inventory costs

  • Tax bills

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How much can you borrow through a merchant cash advance?

Merchant cash advances typically span from £30k to £300k, but if your business boasts substantial monthly revenue, you might qualify for larger amounts.

Subject to the lender's risk evaluation, some businesses could qualify for advances of up to 150% of their monthly card sales.

Apply now

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Who can apply for a merchant cash advance?

Whether you’re a start-up or seeking funds to scale, here’s what you need before you get started. 

Am I eligible for a merchant cash advance with Tide? 

  • You must be over 18

  • Be a UK resident

  • Have a UK-based business

  • Have a UK bank account

A merchant cash advance could be suitable if you:

  • Have more than 3 months’ worth of trading history or card sales

  • Make regular sales revenue and need a quick injection of cash

  • Are looking for a simple alternative to a traditional business loan

  • Want flexible funding that you only pay back when you get paid

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Apply for a merchant cash advance in four easy steps

Getting a merchant cash advance from one of our partners is quick and easy. So quick and easy, in fact, that it can take as little as 48 hours once you’ve been approved.

  1. Tell us how much you need We’ll ask you how much you need, what it’s for, and for some basic information about your business. If you already bank with Tide, you can apply for asset finance straight from the app.

  2. Compare loans without impacting your credit score View affordable credit options that suit the unique needs of your business.

  3. Apply in minutes Once approved, you’ll receive a quote from a lender you matched with.

  4. Get a decision and receive your funds Depending on the loan, funds could be available in around 24 hours.

Apply now

Merchant cash advance pros and cons

For small businesses, a merchant cash advance can be a quick and easy solution. However, before applying for funding, it’s always best to weigh up both the pros and cons.  

Pros

  • Flexible repayments. Pay back what you can afford, based on your credit/debit card sales. 

  • Quick access to funds. Get instant access to capital if your business has urgent cash needs.

  • No collateral required. Unlike traditional loans, merchant cash advances don’t need collateral, making them lower risk and good for businesses with a lower credit score. 

Cons

  • Higher costs. Merchant cash advances have higher fees but offer quick, no-collateral funds for immediate business opportunities.

  • Accessibility. MCAs aren’t as accessible to businesses who deal with a lot of cash, due to repayments being taken from card sales.

  • Short-term solution. Usually, the payback period is shorter than a traditional loan, but MCAs can boost short-term growth.

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Use Credit Score Insights to understand your business credit score

Use our Credit Score Insights tool to understand the factors affecting your business credit score. It's simple and affordable to use, and can be accessed directly in the Tide app. Get insights into your business credit profile and improve your chances of securing funding from lenders.

Learn more

Merchant cash advance FAQs

Yes. Our business cash advance partners accept applications from eligible sole traders, limited companies, and limited liability partnerships.

The main difference is that a business loan is usually repaid in fixed monthly instalments over an agreed term. With a business cash advance, on the other hand, you only pay back when you take payments from your customers.

Usually from £30k to £300k, but this can be subject to change based on your revenue.

Yes. If the customer pays by credit or debit card and the payment is processed by your card payment provider, the agreed percentage of the sale will go towards paying your balance - whether the sale is made with a physical card terminal or online.

Yes, you can typically pay back a merchant cash advance early, but it's essential to review the terms and conditions of your specific agreement with the merchant cash advance provider. Some providers may have clauses or fees associated with early repayment, while others may offer discounts or incentives for early repayment.

Yes, it’s possible. Merchant cash advances are typically based more on your business's sales and future revenue rather than your personal credit score.

Yes, they’re slightly different names for the same thing.