When is a Merchant Cash Advance Suitable For Your Business?

Last post: Jan 2, 2019

When is a Merchant Cash Advance suitable? We take a look at the requirements for a merchant cash advance as well as whether or not you should choose a merchant cash advance over a traditional loan.

When is a Merchant Cash Advance Suitable for Your Business?

A merchant cash advance can be a great way to improve your cash flow, particularly if you are a seasonal business like a restaurant or a bar.

A merchant cash advance is suitable:

  • When you're looking to raise finance for your business, but you need to flexible with your payments.
  • When you're making significant revenue from card payments via a terminal.
  • When your business is seasonal, with a large stream of revenue at certain times of the year.
  • When you're a small firm or a sole trader; particularly a restaurant, bar or shop.


  • The business needs to have a merchant/credit card terminal and be taking at least £3,000 per month via it.
  • Minimum six months' trading history with your card machine.
  • You can usually only obtain the equivalent of your average monthly card turnover.
  • A minimum of £3,000 to £500,000
  • Last six (or preferably 12) months' merchant statements, proof of ID, proof of bank account and a completed application form.