Card Sales Funding UK: How to Get Finance Against Your Card Takings in 2026

By Jodhbir Mehmi | Mehmi Financial Group

Last reviewed: 12 October 2026

Card sales funding in the UK allows eligible businesses to access upfront working capital based on their debit and credit card transactions. Instead of making conventional fixed monthly loan repayments, a business typically repays funding through an agreed percentage of its future card takings.

Also known as a merchant cash advance, card turnover funding or card machine finance, this type of financing is commonly used by restaurants, takeaways, convenience stores, pubs, cafés, beauty salons, independent retailers and e-commerce businesses.

For example, a business processing £30,000 in monthly card payments may be considered for funding based on its sales history, existing financial commitments and ability to support repayments.

UK card sales funding is available through providers and programmes including 365 Finance, Square Cash Advance, PayPal Working Capital, Stripe Capital and Dojo Business Funding, subject to eligibility.

The important consideration is not simply how much funding a business can obtain. It is how much the advance will cost and whether the business can afford deductions from future sales.

This guide explains how UK card sales funding works, what businesses need to qualify, how funding amounts are assessed and how to evaluate an offer before applying.

What Is Card Sales Funding?

Card sales funding is a commercial financing arrangement that uses a business's existing payment-processing history to assess its eligibility for an upfront advance.

Rather than relying exclusively on conventional bank lending criteria, funding providers examine debit and credit card transactions to understand the business's recent revenue performance.

The most common form is a merchant cash advance (MCA).

Under a typical MCA agreement, the provider advances money in exchange for an agreed share of future card receivables.

The business then allocates a fixed percentage of eligible customer transactions towards the agreed repayment amount.

This approach differs from a conventional bank loan, which generally involves scheduled instalments based on borrowed principal and interest.

The British Business Bank identifies merchant cash advances as a form of short-term finance available to businesses that accept debit and credit card payments.

Is card sales funding the same as a merchant cash advance?

In many cases, yes.

The terms card sales funding, card machine funding, merchant cash advance and card turnover finance are often used to describe similar sales-linked funding arrangements.

However, not every financing product advertised using these terms has an identical legal or repayment structure.

Some products purchase future receivables, while others are conventional loans that use sales information for underwriting or payment collection.

Always confirm the exact structure in the funding agreement.

How Does Card Sales Funding Work in the UK?

Card sales funding generally follows a straightforward process.

Step 1: Your business processes customer card payments

The business must have an established history of eligible card transactions.

These may be processed through a physical card terminal, online payment gateway or supported payment platform.

Funding providers use historical transaction records to evaluate sales performance.

Step 2: The provider reviews your card turnover

The provider may examine recent card-processing statements, monthly transaction volumes, trading history and existing financial obligations.

It can also consider refunds, chargebacks, seasonal patterns and the consistency of card revenue.

Step 3: You receive a funding offer

If the business satisfies the provider's underwriting criteria, it may receive an offer specifying:

• The upfront funding amount.
• The fixed financing fee.
• The total contractual repayment.
• The percentage of card sales to be collected.
• Any minimum collection requirements.
• Other relevant contractual obligations.

Step 4: Funding is transferred

Following approval, identity verification and acceptance of the agreement, the provider releases the agreed funds.

Payment may be made to the business bank account or through an eligible payment-platform account.

Funding times vary by provider and application.

Step 5: Collections are made from future card takings

An agreed percentage of eligible card receipts is automatically allocated towards the advance.

Higher sales typically produce larger collection amounts, while lower sales reduce the amount collected under a straightforward percentage-based arrangement.

However, some providers require minimum repayment progress even when revenue falls.

Card Sales Funding Example: £25,000 Advance

Consider a hypothetical UK restaurant processing £30,000 in eligible monthly card sales.

The restaurant needs £25,000 to replace kitchen equipment, purchase stock and improve its dining area.

A funding provider offers the following illustrative terms:

• Funding received: £25,000
• Fixed financing fee: £5,000
• Total contractual repayment: £30,000
• Card sales deduction: 12%

The £5,000 fee is equivalent to 20% of the upfront funding amount. It is not a 20% annual interest rate.

How much would be collected each month?

At £30,000 in eligible card sales, the provider would collect approximately £3,600 per month.

At that constant revenue level, the £30,000 total repayment would take approximately 8.3 months.

Now consider a quieter month.

If eligible card sales fall to £20,000, the 12% deduction would collect approximately £2,400.

If card sales increase to £40,000, the deduction would rise to approximately £4,800.

The repayment period therefore changes with trading performance.

These examples assume consistent sales, no additional charges and no minimum payment provisions.

The £30,000 repayment obligation remains unchanged under this illustrative fixed-fee structure, even if sales decline and repayment takes longer.

What Counts as Eligible Card Sales?

Understanding eligible card turnover is essential before applying for funding.

A business's total revenue is not necessarily the same as its eligible card-processing volume.

For example, a retailer may receive customer payments through debit cards, credit cards, cash and bank transfers.

A provider specialising in card-receivables funding may assess only transactions processed through qualifying payment systems.

Card terminal payments

Payments made through a physical chip-and-PIN or contactless terminal may form part of the eligible transaction history.

These are particularly relevant for restaurants, shops, pubs, salons and other customer-facing businesses.

Online card payments

Businesses using supported online payment gateways may also qualify.

For example, Stripe Capital and PayPal Working Capital assess merchants using transaction histories associated with their respective payment platforms.

Digital wallet payments

Payments made through services such as Apple Pay or Google Pay may count when processed as eligible card transactions through a supported merchant account.

The provider's rules determine which transactions qualify.

Cash and bank transfers

Cash payments and direct bank transfers generally do not count as card sales under a traditional merchant cash advance.

Broader revenue-based financing products may consider other forms of income, but their terms and eligibility requirements can differ.

Gross card sales vs money deposited in your bank account

This distinction can materially affect affordability.

Some providers calculate collections using gross card transactions rather than the net settlement amount deposited into the business account.

For example, Square Cash Advance states that its collection percentage applies to gross card sales, including applicable VAT and tips, in addition to ordinary card-processing fees.

This means a business may incur financing deductions on amounts that are not entirely available to cover operating expenses.

The exact calculation method should be confirmed with each provider.

Who Qualifies for Card Sales Funding in the UK?

Eligibility varies, but funding providers typically assess several important factors.

Minimum trading history

Many providers prefer businesses with an established operating history.

For example, 365 Finance's main merchant cash advance product currently advertises a minimum of six months of trading.

Other providers may apply different requirements based on payment-platform history and underwriting.

Monthly card turnover

Card turnover is one of the primary factors used to assess a traditional merchant cash advance.

Providers generally want evidence of regular customer transactions that can support the proposed deduction percentage.

365 Finance advertises a minimum of £10,000 in monthly debit and credit card sales for its main MCA programme.

Other payment-platform programmes have different thresholds.

Consistent transaction activity

Regular transactions can help establish an ongoing sales pattern.

Providers may review changes in revenue, payment frequency, average transaction size, refunds and chargebacks.

Business structure

Funding programmes may accept different types of businesses.

Some are available to eligible limited companies, sole traders and partnerships.

Others impose specific restrictions.

For example, Square Cash Advance currently focuses on eligible UK sole traders and partnerships using Square, rather than limited companies.

Credit and financial history

Some card sales funding providers place significant emphasis on transaction performance.

However, business credit history, existing loans, previous advances and other financial obligations can still affect eligibility.

A previous bank decline does not automatically mean an MCA will be approved.

Repayment affordability

Providers may assess whether the business can manage collections while continuing to pay suppliers, employees, rent, taxes and other expenses.

A business can have substantial turnover while retaining relatively little available cash after operating costs.

Meeting minimum card-sales requirements does not guarantee funding approval or demonstrate that the advance is affordable.

How Much Card Sales Funding Can You Get?

The amount available depends on the business's historical card revenue, trading performance, repayment capacity and the provider's underwriting criteria.

There is no universal UK formula that determines funding amounts solely from monthly card sales.

Some programmes use card turnover as an important benchmark.

For example, Dojo Business Funding states that its average funding amount is approximately 0.8 to 1 times a merchant's average monthly card turnover.

That benchmark applies to the Dojo programme and should not be treated as a guaranteed amount or an industry-wide standard.

A business processing £25,000 per month in card receipts will not automatically qualify for £25,000.

The offer may be higher, lower or unavailable depending on the provider and applicant.

Similarly, a larger business with high turnover may receive a smaller-than-expected offer if it has significant existing financial obligations.

The amount a provider is willing to advance can be different from the amount the business can prudently afford.

UK Card Sales Funding Providers to Consider

Several established companies offer funding based on card transactions or qualifying payment-platform sales.

The following options have different eligibility requirements and distribution channels.

365 Finance — Direct merchant cash advance funding

365 Finance offers merchant cash advances to eligible UK businesses.

Its main product page advertises:

• At least six months of trading.
• A minimum of £10,000 in monthly card sales.
• Funding from £10,000 to £500,000.
• Typical deductions between 5% and 15% of qualifying card sales.

The company's separate application materials contain some differing historical eligibility wording, so applicants should verify the current criteria.

This option may be worth investigating for established card-taking businesses seeking direct specialist funding.

Square Cash Advance — Funding for Square merchants

Square Cash Advance provides upfront funding in exchange for a percentage of future Square card sales.

Square's UK programme is available to qualifying sole traders and partnerships.

It identifies at least £10,000 in Square card sales over the preceding 12 months and card-processing activity on 20 or more days as relevant eligibility indicators.

The product has no fixed repayment term or scheduled minimum repayments.

However, offers are not available to every Square merchant and must be accepted through the relevant account.

PayPal Working Capital — Funding against PayPal sales

PayPal Working Capital provides cash advances to eligible UK PayPal Business account holders.

Its published minimum requirements include:

• A qualifying PayPal Business account open for at least 90 days.
• At least £9,000 in eligible annual PayPal sales.
• Repayment of any outstanding Working Capital advance, unless invited to renew early.
• An eligible UK-based business.

PayPal collects an agreed percentage of eligible sales.

Importantly, the programme also requires minimum repayment progress every 90 days.

Stripe Capital — Funding for selected Stripe businesses

Stripe Capital provides financing to selected UK merchants based partly on their Stripe transaction history.

In the UK, financing is provided by YouLend.

Eligible businesses can review available offers through the Stripe Dashboard.

The published programme uses a fixed financing fee and sales-linked collections, but eligibility and contractual terms depend on the individual offer.

Dojo Business Funding — Finance linked to card takings

Dojo Business Funding offers merchant financing to eligible Dojo customers through YouLend.

The programme collects an agreed percentage of daily card takings.

Dojo states that typical repayment occurs over approximately six to nine months, although the actual period depends on sales and offer terms.

This route is particularly relevant to existing Dojo merchants rather than businesses using unrelated card-processing providers.

Liberis — Revenue-based business cash advances

Liberis provides business cash advances structured as receivables finance.

The product uses sales-linked collections and a fixed funding fee.

However, its terms include a monthly minimum provision of up to 3% of purchased receivables, with shortfalls potentially collected by direct debit.

Businesses should confirm the available programme, total cost and applicable minimum collections.

Provider comparison tip: Dojo Business Funding and UK Stripe Capital both use YouLend. They should not automatically be counted as two independent underlying funders when evaluating lender diversity.

How Much Does Card Sales Funding Cost in the UK?

Card sales funding commonly involves a fixed financing fee rather than conventional interest charged over a predetermined loan term.

Some arrangements describe this cost using a factor rate.

Understanding a factor rate

A factor rate is a multiplier used to express the total repayment obligation relative to the funding received.

For example:

• Funding amount: £20,000.
• Illustrative factor rate: 1.25.
• Total repayment: £25,000.
• Financing cost: £5,000.

This example excludes additional contractual charges.

The business receives £20,000 but must remit a total of £25,000.

The £5,000 fee represents 25% of the amount advanced.

However, a 1.25 factor rate is not the same as a 25% APR.

Because repayments are collected throughout the funding period, the annualised economic cost can be substantially higher than the fixed-fee percentage suggests.

Businesses comparing an MCA with a conventional loan should consider the timing of payments as well as the total fee.

Does early repayment reduce the cost?

Not necessarily.

Some fixed-fee arrangements require the same total amount even when collections are completed sooner than expected.

Other providers may offer specific settlement provisions.

Review the agreement before assuming early repayment will reduce the financing cost.

The Hidden Cash-Flow Impact of Card Sales Funding

A common mistake is evaluating an advance using sales revenue without accounting for the cost of producing those sales.

Card collections are generally calculated against transaction volume, not the profit retained after operating expenses.

Example: £40,000 in monthly card sales

Consider a hypothetical restaurant processing £40,000 in eligible monthly card payments.

Assume the business has a gross profit margin of 25%.

Its gross profit would be approximately £10,000 before operating overheads.

Now assume an MCA agreement collects 12% of card revenue.

The provider would collect approximately £4,800 per month.

That amount represents 48% of the illustrative gross profit.

The restaurant would still need to pay wages, rent, utilities, insurance, taxes and other operating expenses.

Although the collection includes repayment of the capital originally advanced, the full £4,800 still reduces current available cash receipts.

This is why the deduction percentage must be evaluated against gross margin and cash flow rather than card revenue alone.

A second consideration: VAT and processing fees

Some card sales funding products calculate deductions against gross card receipts, including VAT where applicable.

Suppose a business processes £30,000 in card payments, all subject to standard 20% VAT and with prices inclusive of VAT.

Under those simplified assumptions, the sales include £5,000 of output VAT.

If a card-sales funding arrangement deducts 10% of gross card receipts, approximately £3,000 would be collected.

The business must still account for VAT and ordinary payment-processing costs, in addition to supplier and operating expenses.

Actual VAT liabilities depend on input tax, the applicable VAT scheme and the business's transactions.

The key lesson is that card turnover is not the same as cash available for repayment.

A business should forecast collections using the exact gross or net transaction definition in the funding agreement.

Is Card Sales Funding Suitable for Your Business?

Card sales funding may fit certain business models better than others.

Restaurants and takeaways

Restaurants and takeaways often receive substantial card payments through in-person transactions, delivery services and online ordering.

Funding may support kitchen repairs, inventory purchases, seasonal working capital or refurbishment.

However, food costs, payroll, rent, VAT and other commitments can make large sales deductions difficult to sustain.

Convenience stores and off-licences

Convenience retailers may have regular customer transactions and predictable stock requirements.

Card sales funding may help purchase inventory, but businesses operating with low margins must consider how collections affect their ability to replenish stock.

Pubs, bars and nightclubs

These businesses can experience significant weekly and seasonal fluctuations in card revenue.

A percentage-based structure may provide some flexibility compared with fixed instalments, depending on the contract.

Minimum repayment provisions must be reviewed carefully.

Cafés, bakeries and coffee shops

Smaller food and beverage businesses may need short-term funding for equipment repairs, ingredients or additional inventory.

Their transaction histories may support eligibility, but affordability depends on gross margins and other overheads.

Beauty salons, nail salons and barbers

Businesses receiving frequent customer card payments may qualify for payment-linked financing.

Funding may support fit-outs, equipment or additional working capital.

The available products can depend on the merchant's payment provider and legal structure.

E-commerce retailers

Online sellers processing payments through Stripe, PayPal or other supported platforms may qualify for electronic-sales-based funding.

An advance could finance inventory ahead of a busy selling period.

However, returns, chargebacks, advertising expenditure and fulfilment costs should be assessed.

Auto repair shops and MOT centres

Workshops collecting substantial card payments may qualify for merchant funding.

But businesses requiring specialist equipment should also compare asset finance.

Where most revenue is generated through invoices to commercial customers, invoice finance or a business loan may be more appropriate.

Card Sales Funding vs a Traditional Business Loan

Both products can provide working capital, but their structures differ.

Card sales funding

A typical merchant cash advance:

• Uses eligible future sales as the basis for collections.
• Commonly charges one fixed funding fee.
• Collects a percentage of card takings.
• May have no fixed repayment term.
• Often does not require specifically pledged property or machinery.
• Can become expensive over a short effective repayment period.

Traditional business loan

A conventional business loan:

• Involves repayment of borrowed principal.
• Commonly charges interest and possibly other fees.
• Usually has scheduled repayment obligations.
• May offer longer repayment periods.
• Can be secured or unsecured.
• May have a lower financing cost for eligible applicants.

A business should compare the entire financing arrangement rather than choosing solely based on how quickly the provider advertises funding.

What Documents Are Needed for Card Turnover Funding?

Documentation requirements vary among providers.

Businesses applying through a direct merchant cash advance provider may be asked to submit:

• Recent business bank statements.
• Card-terminal or merchant-processing statements.
• Details of monthly revenue.
• Business registration information.
• Identification for relevant owners or directors.
• Details of existing financing commitments.
• The proposed funding amount and intended use of funds.

Some payment-platform programmes already have access to the transaction history required for an initial assessment.

However, additional verification may still be necessary.

Application preparation tip: Calculate your average card sales over the most recent three to six months, identify material changes in revenue and prepare accurate supporting statements.

Avoid submitting incomplete screenshots or estimated turnover figures as substitutes for documents the provider expressly requires.

How to Apply for Card Sales Funding in the UK

1. Determine your funding requirement

Identify exactly how much money the business needs and what the funds will be used for.

Avoid requesting additional capital merely because a larger advance might be available.

2. Calculate your monthly card turnover

Review recent merchant-processing reports to establish average eligible card receipts.

Separate card sales from cash receipts, bank transfers and other nonqualifying deposits.

3. Assess affordability

Estimate the effect of the proposed deduction percentage on available cash.

Run a downside scenario using lower-than-normal card sales.

Confirm the business can continue meeting essential expenses.

4. Identify appropriate providers

Consider whether funding is available through your existing payment processor or a specialist merchant cash advance provider.

Check legal structure requirements, trading history and product availability.

5. Submit the application

Provide the information and supporting documentation requested through the provider's official application channel.

6. Review the offer

Examine the funding amount, total financing cost, repayment percentage, minimum collections, early settlement provisions and any personal obligations.

7. Complete final verification

The funding provider may complete identity, business and bank account verification before releasing the advance.

Approval, available funding and timing are subject to the provider's final decision.

What Happens if Card Sales Decline?

Under a straightforward percentage-based arrangement, lower card sales usually produce smaller automatic collections.

However, slower sales may extend the overall repayment period.

Some providers also impose minimum collection requirements.

For example, PayPal Working Capital requires minimum repayment progress every 90 days, while Liberis discloses a monthly minimum collection provision.

A business should ask what happens if card turnover drops by 20%, 40% or more.

It should also confirm whether the provider restricts switching payment processors, closing trading locations or taking additional advances.

A lower deduction in a quiet month does not necessarily mean the business has no remaining contractual obligations.

When Should You Avoid Card Sales Funding?

Card sales funding may be unsuitable when the business has insufficient profit or cash flow to accommodate deductions.

It may also be inappropriate when:

• Existing financing already consumes a large proportion of revenue.
• Sales are consistently declining.
• The business is repeatedly borrowing to meet operating losses.
• Funding is needed for a long-term investment better matched to longer-term finance.
• The company receives most revenue through invoices rather than card payments.
• The proposed fee is substantially higher than suitable available alternatives.

The British Business Bank cautions that merchant cash advances can be more expensive than certain other financing options.

Businesses should evaluate the total economic cost rather than assuming that flexible collection amounts make an advance low-risk.

Alternatives to Card Sales Funding

Several other financing structures may be more suitable depending on the circumstances.

Unsecured business loans may provide more predictable repayment schedules and potentially lower financing costs for qualifying businesses.

Business overdrafts can support short-term working capital, subject to the bank's borrowing conditions.

Revolving credit facilities allow eligible companies to draw and repay financing within an agreed facility.

Invoice finance can provide working capital against qualifying unpaid customer invoices.

Equipment finance and leasing may be more suitable when purchasing commercial machinery, vehicles or other identifiable assets.

Supplier credit arrangements may allow a business to obtain inventory using agreed payment terms without immediately taking a cash advance.

The appropriate option depends on the funding purpose, cost, repayment capacity and business financial profile.

Is Card Sales Funding Regulated in the UK?

Regulatory treatment depends on the legal characteristics of the financing product.

Many merchant cash advances are structured as purchases of future receivables rather than traditional credit agreements.

For example, Square states that its UK Cash Advance product is not regulated by the Financial Conduct Authority.

Liberis also identifies its Business Cash Advance as receivables finance rather than a loan and states that the product is not FCA-regulated.

However, this does not mean every product marketed as card sales funding has the same regulatory status.

Conventional business lending can have different regulatory requirements.

The Financial Conduct Authority's September 2026 review of SME finance discusses its regulatory perimeter for qualifying lending of £25,000 or less to sole traders and small partnerships.

Businesses should identify the contractual provider and understand the legal structure, applicable regulatory protections and available complaints procedures before accepting funding.

Frequently Asked Questions About Card Sales Funding UK

Can I get funding based on my card sales in the UK?

Yes. Eligible UK businesses can obtain financing based on qualifying card turnover through merchant cash advances and certain payment-platform funding programmes. Approval depends on the provider's assessment.

What is the minimum card turnover for funding?

There is no universal minimum. For example, 365 Finance advertises a £10,000 monthly card-sales requirement, while Square Cash Advance considers qualifying Square businesses with at least £10,000 in annual processing volume and other eligibility factors.

Can I obtain card sales funding with bad credit?

Potentially. Some providers place significant weight on recent transaction performance. However, adverse credit, arrears and existing financial obligations may still affect approval.

Do I need a card machine?

Not necessarily. Online card transactions processed through qualifying payment platforms may also support eligibility. The accepted payment channels depend on the provider.

Can a new business qualify?

Some programmes consider businesses with shorter trading histories, but providers generally require sufficient transaction activity to assess future sales. Eligibility varies.

Can I obtain funding as a sole trader?

Yes, certain UK merchant cash advance programmes accept sole traders. Square Cash Advance and PayPal Working Capital are examples, subject to their eligibility requirements.

Can a limited company apply?

Yes. Some providers accept limited companies, but programmes differ. Square Cash Advance, for example, currently restricts its UK product to qualifying sole traders and partnerships.

How much can I get against £20,000 in monthly card sales?

There is no guaranteed amount. Providers assess trading history, eligible sales, existing debt and risk. Dojo states its average funding is approximately 0.8 to 1 times monthly card turnover, but this is programme-specific and does not guarantee an offer.

Are repayments deducted daily?

Many card sales funding programmes automatically collect a percentage of daily transactions. The collection frequency and mechanism depend on the provider.

Do I pay on days when there are no card sales?

Some pure percentage-based programmes collect nothing when there are no eligible sales. However, other agreements impose minimum repayments or additional obligations. Check the specific terms.

Does card sales funding require a personal guarantee?

Not every programme requires one. For example, Square states that its Cash Advance product does not require a personal guarantee. Other providers may use different contractual protections.

Is card sales funding cheaper than a business loan?

Not necessarily. Merchant cash advances may carry higher annualised financing costs than conventional loans. Compare total fees, repayment timing and the full economic cost of available alternatives.

Can I have two card sales advances at the same time?

Some providers may consider businesses with existing financing, while other programmes restrict additional advances. Multiple deductions can create considerable pressure on future cash flow.

What happens if I change my card payment provider?

The consequences depend on the agreement. Some contracts restrict changes that affect collection of future receivables. Review the provisions and obtain clarification before changing payment processors.

How quickly can I receive card sales funding?

Some providers advertise funding shortly after approval, but actual timing depends on verification, documentation, the individual application and banking arrangements. Funding speed is not guaranteed.

Explore Card Sales Funding Options for Your UK Business

Card sales funding can provide a source of working capital for businesses with established customer payment activity.

However, the correct financing structure should depend on the cost of the advance, the business's operating margins and the effect of collections on future cash flow.

A well-structured advance should help the business address a defined commercial need without creating unsustainable pressure on its ongoing operations.

Discuss Your Business Funding Requirements

At Mehmi Financial Group, we help businesses discuss commercial financing requirements and explore appropriate funding routes, subject to local requirements and provider availability.

If you are considering card sales funding, share your business location, industry, monthly revenue, approximate card turnover, funding requirement and intended use of funds.

We can review your initial enquiry and confirm whether an appropriate UK financing or referral arrangement is available.

Understand your options before committing to a card sales advance.

Contact Mehmi Financial Group — Explore Your Funding Options

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