A Merchant Cash Advance (MCA) provides short-term business funding repaid through a percentage of daily debit and credit card transactions. Unlike traditional loans with fixed monthly repayments, repayments fluctuate in line with revenue.
At Boxx Finance, we structure merchant cash advance facilities carefully. Flexibility is valuable — but cost and suitability must be understood clearly before proceeding.
What Is a Merchant Cash Advance?
It is an advance against future card sales. The lender provides a lump sum, and in return, a fixed percentage of your daily card takings is automatically collected until the total amount is satisfied. This means higher repayments during strong trade and lower during slower periods.
Who Is It Suitable For?
- Retail businesses
- Restaurants and hospitality operators
- Cafés and takeaway businesses
- Salons and service providers
- E-commerce businesses with strong card turnover
When It Makes Sense
MCA can be appropriate when you need capital quickly, are funding stock ahead of peaks, or have limited security for traditional loans. However, MCAs are typically more expensive than secured facilities. Suitability depends on margin and revenue stability.
Merchant Cash Advance vs Working Capital
MCA differs from traditional Working Capital funding because repayments are linked to turnover and there is often no fixed term. We will outline all options before recommending a structure.
Frequently Asked Questions
How quickly can it be arranged?
In many cases, approval can be achieved within 48 to 72 hours.
What percentage is deducted?
Typically ranges between 5% and 20%, depending on structure.
Is security required?
Generally unsecured but may require a personal guarantee.