Compare Merchant Cash Advance Lenders UK: Costs, Eligibility and Repayment Terms in 2026

By Jodhbir Mehmi | Mehmi Financial Group

Last reviewed: 12 October 2026

Comparing merchant cash advance lenders in the UK requires more than looking at advertised funding amounts or approval speeds. The right provider depends on your business's card turnover, trading history, existing financial commitments and the amount of revenue you can afford to allocate towards repayments.

UK businesses can investigate established merchant cash advance providers such as 365 Finance, Liberis and YouLend. Eligible merchants may also access funding through PayPal Working Capital, Square Cash Advance, Stripe Capital and Dojo Business Funding.

The distinction matters because some platforms are not separate underlying funders. For example, Stripe Capital and Dojo Business Funding both use YouLend for their relevant UK financing programmes.

The most important comparison is the actual written offer: how much money the business receives, how much it must repay, the percentage of sales collected and what happens when revenue declines.

This guide compares UK merchant cash advance providers using their published product information, explains where eligibility differs and provides a practical framework for choosing between competing offers.

Quick Comparison: Which UK Merchant Cash Advance Provider Should You Consider?

Different funding routes are appropriate for different business circumstances.

• 365 Finance: Worth investigating for established UK businesses with at least six months of trading and £10,000 or more in monthly card sales.
• Liberis: Worth considering for revenue-based business funding, particularly where an applicant can accommodate its minimum monthly collection provisions.
• YouLend: Relevant to businesses seeking revenue-linked funding through marketplaces, commercial platforms or direct merchant channels.
• PayPal Working Capital: Designed for eligible businesses with established PayPal transaction histories.
• Square Cash Advance: An option for qualifying UK sole traders and partnerships already accepting payments through Square.
• Stripe Capital: Available to selected Stripe merchants, with financing provided by YouLend in the UK.
• Dojo Business Funding: An option for eligible Dojo merchants, also supported by YouLend.

These are suitability starting points, not a ranking of cheapest rates or highest approval probabilities.

No provider can be identified as universally best without examining the applicant's financial position and actual offer.

1. 365 Finance vs Other UK Merchant Cash Advance Providers

365 Finance is an established UK commercial finance provider offering merchant cash advances against future debit and credit card receipts.

Its product is aimed primarily at businesses with regular card-processing activity.

Published eligibility and funding information

365 Finance advertises:

• Funding from £10,000 to £500,000.
• A minimum trading history of six months.
• At least £10,000 in monthly card sales.
• Typical repayment deductions of 5% to 15% of eligible card transactions.
• Repayment periods commonly ranging from six to ten months, depending on actual sales.

The provider assesses card turnover and automatically collects an agreed portion of future transactions.

Advantages when comparing 365 Finance

Its publicly stated card-turnover and trading-history thresholds provide applicants with a useful initial eligibility benchmark.

The repayment structure is also relatively straightforward to understand: deductions vary with the volume of qualifying card transactions.

Limitations to examine

Businesses receiving most revenue through bank transfers or commercial invoices may have insufficient eligible card sales.

A company generating £80,000 in total monthly revenue but only £5,000 in card receipts may not satisfy the product's published requirements.

Additionally, the business must account for the total financing fee and the effect of deductions on daily cash flow.

Comparison takeaway: Consider 365 Finance when the business has an established card-sales history and can comfortably accommodate sales-based collections.

2. Liberis vs Other UK Cash Advance Providers

Liberis provides revenue-based financing to small businesses.

Its published merchant funding information advertises personalised offers from £1,000 to £1 million, subject to eligibility and underwriting.

The company structures its business cash advance as receivables finance rather than a conventional loan.

How Liberis repayment works

Liberis charges a fixed fee and collects an agreed percentage of future business sales.

However, its repayment conditions contain an important qualification.

The provider discloses that its business cash advance is subject to a monthly minimum amount of up to 3% of the receivables purchased. A shortfall may be collected by direct debit.

This should be considered when comparing Liberis against products with no scheduled minimum collections.

Advantages when comparing Liberis

Liberis offers a broad published funding range and structures its financing around the business's sales performance.

Its fixed-fee approach allows applicants to identify the contractual financing cost before acceptance.

Limitations to examine

The monthly minimum provision can reduce flexibility when sales decline.

Business owners should calculate whether sufficient funds will remain to cover essential operating expenses during quieter trading periods.

They should also confirm the precise repayment percentage, minimum collection requirement and early settlement conditions.

Comparison takeaway: Liberis may be relevant to established businesses seeking revenue-based funding, provided both normal collections and contractual minimums are affordable.

3. YouLend vs Other Merchant Cash Advance Providers

YouLend provides merchant financing through direct channels and partnerships with payment platforms, software providers and online marketplaces.

Its merchant-facing website advertises funding of up to £2 million, subject to eligibility and underwriting.

How YouLend differs

YouLend operates an embedded financing model, allowing eligible businesses to encounter funding offers through commercial platforms they already use.

Its financing typically involves an agreed upfront funding amount, a fixed fee and repayments linked to future sales.

Depending on the programme, repayment collection methods and eligibility requirements can differ.

Advantages when comparing YouLend

The provider supports several commercial distribution channels, including arrangements involving marketplace sellers and payment-processing businesses.

Its published maximum funding amount is larger than the main product limits advertised by some other providers.

However, advertised maximums do not establish what a particular business will qualify for.

Limitations to examine

Access through different platforms can depend on the applicant's merchant account and the programme's conditions.

Business owners should identify the contractual funding entity, repayment method and applicable fee.

Comparison takeaway: YouLend is worth investigating for online sellers, digital merchants and other SMEs with eligible transaction histories.

4. PayPal Working Capital vs Other UK MCA Providers

PayPal Working Capital offers a business cash advance to eligible UK PayPal merchants.

Funding is based partly on the business's established PayPal transaction history and other underwriting information.

Published eligibility requirements

PayPal generally requires:

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

Published funding amounts range from £1,000 to £200,000 for eligible first-time applicants, with up to £300,000 available for qualifying repeat funding.

How repayment differs

PayPal collects an agreed percentage of eligible PayPal sales.

However, minimum repayment progress is required every 90 days.

Depending on the agreement, the minimum can be 5% or 10% of the contractual repayment amount during each 90-day period.

PayPal states there is no additional fee for early repayment, although this should not be confused with a guaranteed reduction in the agreed fixed financing fee.

Advantages when comparing PayPal

Existing PayPal merchants may be assessed using transaction data already available within their business accounts.

The minimum published annual PayPal sales requirement can make the programme relevant to some smaller merchants.

Limitations to examine

Businesses that receive most revenue outside PayPal may not generate sufficient qualifying activity.

The 90-day minimum repayment provision is particularly important for seasonal businesses.

Comparison takeaway: PayPal Working Capital should be considered by qualifying merchants with a meaningful and consistent PayPal sales history.

5. Square Cash Advance vs Other UK MCA Providers

Square Cash Advance provides eligible Square merchants with funding in exchange for a percentage of future card sales.

The product is issued by Squareup Europe Ltd.

Who can qualify?

The UK programme focuses on qualifying sole traders and partnerships.

Square states that eligibility typically involves at least £10,000 in Square card payments over the preceding 12 months and transaction activity on 20 or more separate days.

Offers are based on business activity and extended to eligible merchants.

Important repayment differences

Unlike certain other programmes, Square Cash Advance does not have fixed repayment terms or minimum scheduled payments.

The provider deducts an agreed percentage of qualifying Square card transactions.

Square also states that its merchant cash advance product does not require a personal guarantee.

However, the product cannot be refinanced while the current advance remains outstanding, and a new offer is not available until the existing advance is complete.

Advantages when comparing Square

Repayments adjust directly with eligible card-processing activity.

The absence of scheduled minimum collections can be attractive to qualifying businesses with irregular trading patterns.

Limitations to examine

The product is restricted to eligible Square customers operating as sole traders or partnerships.

A UK limited company should not assume it qualifies for this particular cash advance product.

Businesses must also consider the combined effect of normal card-processing fees and the additional financing deduction.

Comparison takeaway: Square Cash Advance is particularly relevant to eligible UK sole traders and partnerships already using Square.

6. Stripe Capital vs Direct Merchant Cash Advance Providers

Stripe Capital provides financing opportunities to selected UK businesses processing payments through Stripe.

In the United Kingdom, financing under Stripe Capital is provided by YouLend.

How eligibility works

Stripe considers account activity, payment volume and transaction history when determining whether a business may be eligible for funding.

Eligible merchants can review available offers through their Stripe Dashboard.

The funding amount, financing cost and collection terms depend on the specific offer.

Advantages when comparing Stripe Capital

Businesses already using Stripe may find it convenient to evaluate a financing offer using their existing payment infrastructure.

Applications may require less manual submission of transaction information where sufficient data is already available.

Limitations to examine

Funding is not available automatically to every Stripe customer.

Most importantly, Stripe Capital should not be treated as an entirely separate underlying funding provider from YouLend when comparing lender diversity.

Comparison takeaway: Review Stripe Capital if your business already processes meaningful revenue through Stripe and has access to an eligible offer.

7. Dojo Business Funding vs Other MCA Providers

Dojo Business Funding provides eligible Dojo customers with business financing through YouLend.

The programme is designed around existing merchant card-processing activity.

Published funding information

Dojo states that:

• Funding eligibility depends on card-processing history, business performance and credit information.
• The average amount funded is approximately 0.8 to 1 times monthly card turnover.
• Repayments are collected as a fixed percentage of daily sales.
• The typical repayment period is approximately nine months.
• The maximum repayment period advertised for this programme is one year.

Actual offers vary based on underwriting and the selected collection percentage.

Advantages when comparing Dojo

The programme integrates with an existing Dojo merchant relationship.

Repayments follow daily card transaction activity, and the provider discloses a fixed financing fee before funding.

Limitations to examine

Eligibility depends on the merchant's relationship with Dojo and the provider's credit assessment.

Businesses using other payment processors may need alternative funding routes.

Comparison takeaway: Dojo Business Funding is an option for eligible Dojo merchants, but it should be recognised as another YouLend-supported financing channel.

What About Capify Merchant Cash Advances?

Capify is an established UK business finance company with historical merchant cash advance offerings.

However, its current main website prominently markets secured and unsecured business loans, while some older merchant cash advance content remains online.

This distinction is important when conducting a current lender comparison.

Before treating Capify as an available merchant cash advance provider, confirm directly whether it is currently originating new sales-linked merchant cash advances.

If Capify offers a conventional business loan instead, compare it separately using its actual interest, fees, repayment schedule and guarantee requirements.

Do not assume a business loan with frequent fixed payments is equivalent to a cash advance linked to future card sales.

How to Compare Merchant Cash Advance Lenders Properly

Published funding limits and introductory eligibility criteria are useful, but they do not reveal which offer is financially preferable.

A meaningful comparison should evaluate the following factors.

1. The amount of usable funding

Compare the net amount the business will actually receive.

If one offer includes fees deducted before funding, the net cash available may differ from the advertised advance amount.

Every provider should be compared using the same funding requirement wherever possible.

2. The total contractual repayment

Ask for the complete amount the business must remit, including the advance and fixed funding fee.

This establishes the total financing cost before considering the timing of collections.

3. The repayment percentage

The percentage deducted from daily or monthly sales is critical to cash-flow planning.

An offer with a lower total fee may still create greater short-term pressure if it requires a high percentage of every transaction.

4. The estimated repayment period

Two offers with the same fixed fee can have different effective annualised costs if one is expected to be repaid much sooner.

A shorter repayment period generally increases the annualised economic cost of an advance with otherwise equivalent funding terms.

5. Minimum repayment requirements

Check whether the product includes a minimum payment obligation.

An agreement collecting only a percentage of actual sales may behave differently from one requiring minimum monthly or quarterly collection progress.

6. Early settlement provisions

Determine whether early repayment is permitted and whether it reduces the amount payable.

Do not assume a fixed-fee cash advance provides an interest-saving benefit when settled early.

7. Personal guarantees and contractual security

Confirm whether business owners must sign a personal guarantee or indemnity.

Also review any restrictions or obligations linked to payment processors, settlement accounts or future receivables.

8. Existing finance restrictions

Some providers restrict additional cash advances, refinancing or changes to payment-processing arrangements.

Businesses with existing funding should review these provisions before accepting another agreement.

9. Provider and contract identity

A platform displaying a funding offer may not be the underlying finance provider.

Ask which legal entity will advance the funds, collect payments and enforce the agreement.

10. What happens if sales decline?

This is one of the most important questions.

Request a written explanation of low-sales periods, minimum payments, missed collections, defaults and changes in trading activity.

An affordable advance should remain manageable under a reasonable downside sales scenario, not only when the business meets its best monthly revenue forecast.

Example: Comparing Two UK Merchant Cash Advance Offers

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

The restaurant needs £25,000 to purchase kitchen equipment and increase inventory.

It receives two illustrative offers.

Offer A: Lower fee, higher sales deduction

• Funding received: £25,000.
• Illustrative factor rate: 1.20.
• Total repayment: £30,000.
• Total financing cost: £5,000.
• Sales deduction: 12%.
• Expected monthly collections at £30,000 of card sales: £3,600.
• Estimated repayment period: approximately 8.3 months.

Offer B: Higher fee, lower sales deduction

• Funding received: £25,000.
• Illustrative factor rate: 1.28.
• Total repayment: £32,000.
• Total financing cost: £7,000.
• Sales deduction: 8%.
• Expected monthly collections at £30,000 of card sales: £2,400.
• Estimated repayment period: approximately 13.3 months.

Which offer is better?

Offer A costs £2,000 less overall, excluding any additional charges.

However, Offer A also collects approximately £1,200 more from monthly sales during the repayment period.

Offer B leaves more immediate sales revenue in the business but requires a higher total repayment.

The choice depends on the restaurant's financial position.

If the business has a healthy cash buffer and can afford larger deductions, the lower total financing cost may be preferable.

If cash flow is tight, the smaller deduction under Offer B may appear more manageable, although the additional £2,000 financing cost must be justified.

Neither offer is automatically the better choice without assessing operating expenses, profitability and repayment risk.

These are hypothetical examples, not actual lender quotations. They assume constant sales, no additional fees and no minimum repayment provisions.

What if monthly sales fall by 40%?

If monthly eligible card revenue falls from £30,000 to £18,000:

• Offer A would collect approximately £2,160 per month at 12%.
• Offer B would collect approximately £1,440 per month at 8%.

Both collection amounts decline, but the contractual repayment amounts remain unchanged in this simplified illustration.

If either agreement imposes a minimum collection requirement, the cash-flow outcome could be different.

This downside test should be completed before accepting any merchant cash advance offer.

Which Merchant Cash Advance Provider Fits Your Business?

Rather than choosing by brand alone, narrow your options according to your payment methods and financing requirements.

Restaurants and takeaways

Restaurants with established card-terminal revenue may want to investigate 365 Finance or other specialist merchant cash advance providers.

Existing Dojo merchants can also consider their available funding programme.

The priority is ensuring that card deductions do not prevent the restaurant from meeting food supplier, payroll, rent and tax obligations.

Convenience stores and off-licences

Convenience retailers commonly receive frequent card payments, making transaction-linked funding potentially relevant.

However, the business must account for inventory replacement costs.

A shop can generate substantial sales while retaining a comparatively small percentage as gross profit.

A high repayment deduction may therefore have a disproportionate effect on available working capital.

Pubs and bars

Hospitality businesses may experience significant variation between weekdays, weekends and seasonal periods.

A funding structure without restrictive minimum collections may be worth comparing against alternatives that impose minimum monthly or quarterly obligations.

E-commerce and online retail businesses

Businesses generating meaningful revenue through Stripe or PayPal should examine whether their existing payment accounts provide access to funding offers.

Marketplace sellers may also investigate YouLend-supported programmes.

The merchant should compare total costs and avoid taking funding solely because an offer is displayed within an existing payment dashboard.

Salons, barbers and independent retailers

Smaller businesses using Square may qualify for the Square Cash Advance programme where their legal structure and transaction history meet the requirements.

Limited companies need to confirm access to another applicable product.

Auto repair shops and MOT centres

A workshop accepting regular card payments may qualify for a merchant cash advance.

However, when financing specialist equipment or machinery, equipment finance may provide a better match between the asset's useful life and the repayment period.

Workshops primarily paid through commercial invoices should also investigate invoice finance.

How to Identify the Cheapest Merchant Cash Advance Lender in the UK

The cheapest provider cannot be determined reliably from a general advertised funding range.

Merchant cash advance pricing often depends on the individual business's risk profile, trading history, funding amount and projected sales.

To compare genuine offers, request the following information from each provider:

• The exact amount deposited into the business account.
• Every applicable funding fee or additional charge.
• The contractual total repayment amount.
• The percentage of future sales collected.
• The expected repayment period using realistic sales forecasts.
• Any minimum payment requirements.
• Early settlement terms.
• Personal guarantees, restrictions and default provisions.

Compare offers on the same advance amount and comparable repayment assumptions.

A 1.20 factor rate is not equivalent to a 20% APR.

A factor rate measures total contractual repayment relative to the advance. It does not account for the dates on which money is received and repaid.

For an accurate annualised cost comparison, use the funding received and the expected sequence of payments to calculate an equivalent annualised rate.

This helps reveal situations where a short-duration, fixed-fee advance is significantly more expensive than a longer-term credit product.

Direct Merchant Cash Advance Provider vs Broker

Business owners may obtain offers directly from a funding company, through an existing payment processor or through a commercial finance intermediary.

Applying directly

A direct application can be appropriate when the business already knows which provider and product it wishes to evaluate.

The applicant deals with that provider's application, underwriting and documentation processes.

Applying through a payment platform

A merchant may receive a financing offer through its current payment provider.

This can reduce the need to assemble some transaction records manually.

However, access may be restricted to the provider's selected merchants and underlying funding partners.

Using a commercial finance intermediary

A finance intermediary may help a business review its funding requirements, compare available product structures and understand documentation requirements.

Actual lender access and referral availability must be confirmed.

Intermediaries may receive commissions or referral fees from a financing transaction.

Businesses should understand relevant intermediary relationships, fees and any conflicts of interest before proceeding.

The goal is not necessarily to submit the greatest number of applications. It is to identify appropriate options without unnecessarily duplicating credit checks or financing enquiries.

Are UK Merchant Cash Advance Lenders FCA-Regulated?

The regulatory position depends on the type of funding and the legal structure of the agreement.

Many genuine merchant cash advances are structured as purchases of future receivables rather than conventional loans.

For example, Liberis states that its business cash advance is receivables finance and is not regulated by the Financial Conduct Authority.

Square similarly states that its UK merchant cash advance product is not FCA-regulated.

YouLend identifies its merchant financing as outside FCA regulation, although it is authorised for separate payment-services activities.

The distinction is important because FCA authorisation for one financial activity does not automatically mean all financing products offered by the company are regulated.

In its September 2026 SME finance review, the FCA discussed the regulatory framework for qualifying business lending of £25,000 or less to sole traders and small partnerships.

The regulatory treatment of a particular arrangement depends on its legal characteristics and the parties involved.

Businesses should review the provider's contractual disclosures and applicable complaints procedures.

Where relevant, a firm's authorisation can be checked through the FCA Firm Checker.

When a Merchant Cash Advance May Not Be the Best Option

A merchant cash advance can create financial pressure when a business already has limited available cash.

Particular caution is warranted if the business is using new finance to cover overdue tax liabilities, repeated operating losses or existing advance repayments without a credible recovery plan.

It may also be inappropriate when the business has low card turnover or needs funding for an investment expected to generate returns over several years.

The British Business Bank notes that merchant cash advances can be expensive compared with other forms of business finance.

Alternatives worth considering include unsecured business loans, business overdrafts, revolving credit facilities, invoice finance and equipment finance.

The right alternative depends on the funding purpose, repayment capacity, security requirements and total cost.

Frequently Asked Questions

Which merchant cash advance lender is best in the UK?

There is no universally best provider. 365 Finance, Liberis and YouLend offer different funding arrangements, while PayPal, Square, Stripe and Dojo provide access through specific merchant relationships. The best option depends on written terms and eligibility.

Which UK merchant cash advance provider has the lowest fees?

The lowest-cost provider cannot be established without comparable quotations. Request the total contractual financing cost, sales deduction percentage, expected repayment period and any additional charges.

Can I compare merchant cash advance lenders with bad credit?

Yes. Some providers consider applications from businesses with imperfect credit histories, particularly where transaction activity is strong. Approval still depends on underwriting, affordability and other risk factors.

What is the minimum trading history required?

Requirements differ. 365 Finance advertises a minimum of six months of trading, while payment-platform programmes assess eligibility using their own transaction and account histories.

Can I compare offers without affecting my credit score?

Some providers use soft credit searches for initial eligibility checks. However, credit assessment procedures vary. Ask whether each application involves a soft or hard search before authorising it.

Are Stripe Capital and YouLend separate lenders?

In the UK, YouLend provides financing through Stripe Capital. They should not automatically be counted as two independent funding sources when evaluating lender diversity.

Can limited companies use Square Cash Advance?

Square's UK Cash Advance product is currently intended for eligible sole traders and partnerships, not limited companies. Other Square financing products may have different eligibility requirements.

Can I repay a merchant cash advance early?

Some providers permit early settlement. Whether this reduces the total fixed funding fee depends on the individual agreement. Confirm settlement terms before accepting funding.

Can I obtain merchant cash advance funding with an existing business loan?

Possibly. Existing finance commitments may be considered during underwriting. The business must demonstrate that additional deductions are affordable, and existing contractual restrictions should be reviewed.

What happens if my card sales decrease?

Under a genuine percentage-of-sales arrangement, collection amounts generally decrease as eligible sales fall. Some providers impose minimum collection requirements that can still apply during reduced trading periods.

Are merchant cash advances suitable for seasonal UK businesses?

They can be, particularly when collections adjust with actual sales. However, the business should examine low-season revenue, minimum repayments and the resulting effect on cash reserves.

Is it better to apply through a direct lender or a broker?

Either approach may be appropriate. Direct providers offer their own products, while an intermediary may help assess alternative structures and available financing routes. Transparency, fees, actual provider access and suitability matter more than the application channel alone.

Final Checklist Before Selecting a UK Merchant Cash Advance Provider

Before signing a funding agreement, confirm that you understand the real cost and contractual obligations.

Check that the business has sufficient turnover to qualify and enough available cash flow to support the proposed deductions.

Compare the total repayment amount, repayment percentage, minimum collection requirements, early settlement provisions and any personal guarantees.

Run realistic downside forecasts rather than assuming sales will always remain at their present level.

Finally, compare the proposed advance against other business financing options.

A merchant cash advance should support a credible commercial objective without creating an unsustainable claim on future revenue.

Explore Your UK Merchant Cash Advance Funding Options

At Mehmi Financial Group, we help business owners review commercial financing requirements and explore suitable financing structures, subject to jurisdictional requirements and provider availability.

If your business is considering a merchant cash advance, a review of its monthly turnover, repayment capacity and intended use of funds can help establish the next steps.

Our team can discuss your enquiry and confirm whether an appropriate UK financing or referral route is available.

Compare Your Business Funding Options

Before committing to a merchant cash advance, understand how the proposed financing will affect your cash flow.

Contact Mehmi Financial Group to discuss your commercial funding requirements.

Contact Us — Explore Your Financing Options

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