Compare Merchant Cash Advance Providers UK (2026): Costs, Eligibility and Repayments

Comparing merchant cash advance providers in the UK involves more than finding the company offering the largest funding amount. The right provider depends on your business's card turnover, trading history, payment processor, funding costs and ability to manage sales-linked deductions.

UK businesses can explore merchant cash advances through providers such as 365 Finance, YouLend and Liberis, alongside payment-platform programmes including PayPal Working Capital, Shopify Capital, Stripe Capital, Square Cash Advance and Teya Cash Advance.

Although these programmes share similarities, their terms are not interchangeable.

For example, PayPal Working Capital requires minimum repayments every 90 days, while Square's UK Cash Advance product has no scheduled minimum repayment requirement. Liberis, meanwhile, discloses a possible monthly minimum collection obligation.

These differences matter just as much as the funding fee.

This guide compares UK merchant cash advance providers using their published eligibility requirements, funding ranges, repayment arrangements and contractual conditions. It also explains how to compare actual financing quotations before applying.

Which Merchant Cash Advance Providers Should UK Businesses Compare?

The most relevant UK providers depend partly on whether your business already uses a participating payment platform.

For businesses wanting to approach a funding provider directly

365 Finance: An established UK merchant cash advance provider advertising £10,000 to £500,000 in funding, with published trading-history and card-turnover requirements.

YouLend: A revenue-based finance provider advertising funding of up to £2 million, available through its business funding channels and commercial partnerships.

Liberis: A commercial finance provider advertising personalised funding offers between £1,000 and £1 million through its broader business funding programme.

For businesses using an existing payment platform

PayPal Working Capital: Designed for eligible UK businesses generating qualifying PayPal sales.

Shopify Capital: Merchant cash advances available to eligible Shopify businesses through YouLend.

Stripe Capital: Business loans and merchant cash advances offered to eligible Stripe businesses, with UK financing provided by YouLend.

Square Cash Advance: Available to eligible Square customers operating as sole traders or partnerships.

Teya Cash Advance: A funding programme for eligible Teya merchants involving financing partners including Liberis and YouLend.

Worldpay also provides access to a business cash advance programme through Liberis.

Important: These are not all independent sources of capital. Multiple payment platforms can distribute financing supplied by the same underlying company.

Published funding amounts represent programme limits rather than guaranteed individual offers. The actual amount, fee and deductions depend on underwriting and the signed agreement.

1. Compare Providers by Funding Amount

One of the first questions UK business owners ask is how much merchant cash advance funding they may be able to access.

There are substantial differences between advertised provider maximums.

365 Finance

365 Finance advertises merchant cash advance funding from £10,000 to £500,000.

Its published programme requires at least six months of trading and monthly card sales exceeding £10,000.

Actual funding eligibility depends on the applicant's circumstances.

YouLend

YouLend advertises business funding of up to £2 million.

Its revenue-based financing is assessed using business and transaction information, with available amounts depending on the applicant and funding channel.

Liberis

Liberis advertises personalised business funding offers from £1,000 to £1 million.

However, the maximum available through a particular partnership may be lower.

For example, Worldpay Business Cash Advance, provided by Liberis, advertises £1,000 to £300,000.

PayPal Working Capital

PayPal Working Capital advertises up to £200,000 for initial funding and up to £300,000 for eligible repeat funding.

The amount offered depends on PayPal sales history, account activity and other eligibility factors.

Teya Cash Advance

Teya Cash Advance publishes a typical funding range of £1,000 to £500,000.

The actual amount is determined by the underlying financing partner.

Shopify Capital, Stripe Capital and Square Cash Advance

These programmes generally present personalised financing opportunities to eligible merchants.

Businesses should review available offers through their respective merchant dashboards rather than assume a publicly advertised maximum will apply.

Which provider offers the highest amount?

Among the programmes reviewed, YouLend publishes one of the largest advertised maximums at £2 million.

However, this does not establish that YouLend will provide the largest advance to a particular applicant.

A business receiving £40,000 in monthly card sales should not assume it can obtain funding approaching a provider's headline maximum.

The relevant figure is the actual offer available after underwriting.

2. Compare Merchant Cash Advance Eligibility Requirements

Eligibility varies significantly between UK merchant cash advance companies.

Some programmes disclose specific minimum revenue and trading requirements. Others use transaction data to determine which merchants receive funding invitations.

365 Finance eligibility

365 Finance publishes a minimum of six months' trading history and more than £10,000 in monthly credit and debit card sales.

These thresholds make it a potential option for established card-taking businesses.

A company with high total revenue but limited card transactions may not satisfy the programme's requirements.

PayPal Working Capital eligibility

PayPal publishes several minimum criteria.

Businesses generally need a PayPal business account that has been active for at least 90 days, a minimum of £9,000 in eligible annual PayPal sales and an eligible UK business presence.

Applicants ordinarily must also have satisfied any existing PayPal Working Capital advance unless they receive an early renewal invitation.

These are minimum requirements, not an approval guarantee.

Worldpay and Liberis eligibility

Through Worldpay, Liberis considers merchants taking at least ten card transactions totalling more than £1,000 monthly.

Worldpay indicates that more than four months of trading through its platform is preferred, although merchants transferring from another processor may be considered where suitable historical evidence is available.

Other Liberis programmes may have different requirements.

Square Cash Advance eligibility

Square's UK Cash Advance programme uses existing merchant payment information.

It identifies annual Square card-processing volume of approximately £10,000 and transaction activity on at least 20 days during the previous year as useful eligibility indicators.

Eligible merchants receive offers through Square rather than obtaining unrestricted access to the product on demand.

The UK programme is specifically available to qualifying sole traders and partnerships.

Shopify Capital eligibility

Shopify assesses merchants for available financing opportunities and displays offers through the Shopify administration dashboard.

Eligibility is influenced by the individual merchant's business profile and relevant platform activity.

Not every Shopify business receives an offer.

Stripe Capital eligibility

Stripe uses business and transaction information to determine financing eligibility.

Eligible businesses can view available offers through their Stripe Dashboard.

The precise product may be a loan or a merchant cash advance, which is an important distinction when comparing repayment conditions.

Which provider has the easiest eligibility requirements?

No provider can reliably be declared the easiest for every UK business.

A merchant with consistent PayPal sales may meet PayPal Working Capital's initial criteria while failing 365 Finance's monthly card-turnover threshold.

Another business may qualify through its established Worldpay history without being eligible for Square or Shopify financing.

The most practical approach is to shortlist providers that fit your existing revenue and payment-processing arrangements before comparing prices.

3. Compare Repayment Structures and Minimum Payments

Repayment arrangements are one of the most important differences between UK merchant cash advance providers.

Most traditional merchant cash advances collect a fixed percentage of qualifying future sales.

However, a sales-linked collection percentage does not automatically mean a business has no minimum payment obligations.

365 Finance: Collections linked to card revenue

365 Finance publishes a typical collection percentage of approximately 5% to 15% of qualifying debit and credit card sales.

Collections vary with the business's card turnover.

Its published guidance describes a typical repayment period of approximately six to ten months, although the actual period depends on the business.

Businesses should confirm the collection percentage, total amount repayable and any contractual exceptions in their individual offer.

Liberis: Sales-linked payments with a potential monthly minimum

Liberis uses a pre-agreed percentage of sales to collect its business cash advance.

However, its direct funding disclosures identify a monthly minimum amount of up to 3% of the purchased receivables, with a shortfall potentially collected by direct debit.

That means a fall in sales-linked collections does not necessarily remove the business's obligation to make a minimum payment.

The exact requirement should be checked against the relevant agreement.

PayPal Working Capital: Minimum repayment every 90 days

PayPal automatically collects a percentage of qualifying PayPal sales.

However, PayPal also requires a minimum repayment every 90 days.

Its published guidance identifies minimum amounts of 5% or 10% of the total repayment obligation, depending on the applicable offer.

If automated deductions do not satisfy the requirement, the business may need to make an additional payment.

This is especially important for seasonal businesses or merchants whose PayPal sales represent only a portion of overall revenue.

Square Cash Advance: No scheduled minimum payments

Square states that its UK Cash Advance product has no fixed repayment term and no scheduled minimum payments.

It collects an agreed percentage of future Square card sales.

On days when the merchant processes no qualifying sales, there are no automatic sales-linked collections.

Square also states that the product does not require a personal guarantee.

These features are relevant to businesses comparing contractual flexibility, although eligibility is restricted to supported Square merchants.

Shopify Capital: No fixed remittance deadline

Shopify's UK merchant cash advance programme states that there is no fixed deadline for remitting the total contracted amount.

Instead, remittances are calculated as an agreed percentage of daily Shopify sales.

However, Shopify's calculation of gross sales can include completed orders that are subsequently refunded or cancelled, along with shipping charges and applicable taxes.

Businesses with high return rates or significant VAT obligations should understand this calculation before accepting an offer.

Stripe Capital: Confirm whether the offer is a loan or MCA

Stripe Capital can offer different financing structures.

Both loans and merchant cash advances may involve automated collections from sales, but loan agreements can include minimum periodic payment requirements.

Stripe states that UK Capital financing is provided by YouLend.

Merchants should read the specific agreement and identify whether the financing is a loan or a receivables-based advance.

Teya Cash Advance: Partner-specific minimum obligations

Teya describes its Cash Advance product as sales-linked financing with a fixed upfront funding fee.

However, it also states that financing partners set minimum repayment obligations.

For limited companies and LLPs, a personal guarantee may be required.

Teya merchants should confirm which financing partner provides their offer and review the relevant agreement.

Which provider offers the most flexible repayments?

Based on their published product structures, Square Cash Advance and Shopify Capital have particularly relevant features for businesses seeking arrangements without scheduled minimum collections or fixed remittance deadlines.

That does not mean either provider will be available or suitable for every business.

A provider's actual repayment terms, total cost, sales calculation method and eligibility must be considered together.

4. Compare Merchant Cash Advance Costs

Most UK merchant cash advance providers do not publish a universal fee applicable to every business.

Instead, funding costs are typically determined using factors such as business revenue, trading history, financing amount and underwriting risk.

Many providers express the cost as a fixed fee, while some financing arrangements use factor-rate terminology.

Understanding a factor rate

A factor rate represents the total repayment as a multiple of the amount advanced.

For example, a hypothetical £20,000 advance with a factor rate of 1.20 would result in £24,000 being repaid.

The financing cost would therefore be £4,000, assuming no additional charges.

A factor rate of 1.20 is not equivalent to 20% APR because it does not account for the timing of individual collections.

Why the cheapest offer can affect cash flow more heavily

Consider a restaurant comparing two hypothetical offers for the same £20,000 advance.

Offer A: The business receives £20,000, repays £24,000 in total and has 8% of qualifying card sales collected.

Offer B: The business receives £20,000, repays £22,600 in total and has 17% of qualifying card sales collected.

Offer B has a lower total financing cost by £1,400.

However, if the restaurant generates £30,000 in qualifying monthly card sales, Offer A would collect approximately £2,400 during that month, while Offer B would collect approximately £5,100.

Offer B therefore costs less overall but creates a substantially larger immediate deduction from card receipts.

For a restaurant with payroll, food purchases, VAT liabilities, rent and other commitments, that difference may be significant.

These are hypothetical illustrations, not offers or representative rates from any named provider. They assume constant sales and no additional contractual payment obligations.

What information should every provider disclose?

Before accepting a merchant cash advance, request written confirmation of:

1. The amount the business will actually receive.
2. The complete funding fee and total amount repayable.
3. The percentage of qualifying sales to be collected.
4. Any minimum payment or reconciliation requirements.
5. The consequences of slow sales, processor changes and early settlement.
6. Any personal guarantee, security or other owner obligations.

Businesses should also request an annualised cost comparison where feasible, particularly when evaluating an MCA against an interest-bearing business loan.

A fixed funding fee can still represent expensive financing, even where the agreement does not charge traditional interest.

5. Compare Personal Guarantees and Security Requirements

Merchant cash advances are often marketed as unsecured business funding.

However, the absence of a requirement to pledge particular property or equipment does not necessarily mean a business owner has no personal contractual liability.

Different providers have different arrangements.

For example, Square explicitly states that its UK Cash Advance product does not require a personal guarantee.

Teya states that limited companies and LLPs may need to provide one, depending on the financing arrangement.

Other providers may assess guarantees or contractual protections based on the legal structure of the business and the offer.

Business owners should examine whether the agreement contains:

• A personal guarantee or indemnity.
• Restrictions on redirecting card sales to another processor.
• Obligations concerning business ownership or closure.
• Additional payments triggered by default.
• Security or other enforceable rights over business assets.

The relevant legal obligations should be established before signing.

6. Compare Direct Funding Providers With Embedded Financing Platforms

One of the most frequently overlooked details in merchant cash advance comparisons is the identity of the underlying financing provider.

A customer-facing brand and the company supplying the capital may be different organisations.

YouLend behind Shopify and Stripe

Shopify Capital's UK merchant cash advances are provided through YouLend.

Stripe also identifies YouLend as the provider of its UK Capital loans and merchant cash advances.

This means comparing a Shopify Capital offer with a Stripe Capital offer does not necessarily involve two completely independent funding companies.

The financing offers may still have different terms, but the relationship should be understood.

Liberis behind Worldpay

Worldpay Business Cash Advance is provided by Liberis.

A merchant using Worldpay may access a Liberis funding arrangement through Worldpay's existing commercial relationship.

Liberis also offers financing through other channels.

Teya's multi-provider approach

Teya works with several financing partners, including Liberis and YouLend.

The actual provider may depend on the programme and merchant's individual offer.

Teya also provides access to a separate Flexi Loan product involving iwoca, which should not automatically be treated as equivalent to a merchant cash advance.

Why underlying providers matter

Businesses should identify who supplies the financing, whose agreement they are signing and who is responsible for managing collections and complaints.

If two apparently different platforms offer financing from the same underlying provider, the business should still compare the specific pricing and contractual terms.

Different branding alone does not establish genuine lender diversification.

7. Compare Merchant Cash Advance Providers by Business Type

The suitability of an MCA depends partly on how a business generates revenue.

Restaurants and takeaways

Restaurants, takeaways and cafés frequently receive substantial card payments.

A direct provider such as 365 Finance may be relevant where the business meets its published requirements.

Restaurants already processing through Worldpay, Square or Teya may also have access to their platforms' funding programmes.

The business should compare the collection percentage against its operating margins, particularly after food costs, wages and delivery-platform fees.

Convenience shops and off-licences

Convenience retailers may need funding for stock purchases, refrigeration repairs or seasonal trading requirements.

However, a high card turnover does not always mean a high operating profit.

Cash advance deductions should be assessed against the money required to replenish stock and meet supplier obligations.

Pubs, bars and nightclubs

Hospitality businesses with volatile seasonal sales should pay particular attention to minimum payment clauses.

A provider requiring minimum collections may create greater financial pressure during quiet trading months than a product relying solely on qualifying sales deductions.

E-commerce businesses

E-commerce companies may find Shopify Capital, Stripe Capital, PayPal Working Capital or YouLend relevant to their existing payment arrangements.

But businesses should examine refund activity, returns, chargebacks, fulfilment costs and advertising expenditure before dedicating part of gross revenue to financing collections.

MOT centres, garages and tyre shops

Auto repair businesses may use MCA funding for parts, repairs, diagnostics or other working capital needs.

An MCA may be less suitable where the majority of revenue arrives by invoice or bank transfer rather than qualifying card payments.

Beauty salons, barbers and independent retailers

These businesses may generate frequent card transactions and have access to payment-platform funding offers.

However, owners should consider seasonality, staff costs, rent and recurring inventory purchases when evaluating affordability.

8. How to Compare Two Actual Merchant Cash Advance Offers

The most reliable comparison uses two genuine quotations obtained for the same business and financing requirement.

Start with the funding amount required, rather than choosing the maximum a provider makes available.

Then compare the complete contractual cost.

Compare the money received

Establish how much will actually reach the business account after any compulsory deductions or upfront charges.

Compare the total repayment

Identify the full amount that must be remitted or repaid.

This is the starting point for measuring financing cost.

Compare the sales deduction

Calculate the amount that would be collected at the business's current card revenue.

Repeat the calculation using a significantly slower trading month.

Compare the collection base

Some programmes use qualifying card transactions, while others may calculate deductions using a broader definition of gross platform sales.

Confirm how refunds, VAT, tips, delivery charges and other sales adjustments are treated.

Compare minimum payment obligations

Determine whether a provider requires an additional payment if sales-linked deductions fall below a contractual threshold.

Compare early settlement terms

Ask whether paying early reduces the original funding fee.

Certain programmes permit early settlement without reducing the agreed financing cost.

Compare personal liability

Review guarantees, indemnities and default provisions.

Where appropriate, obtain independent professional advice before accepting significant contractual obligations.

Compare the consequences of slower trading

A provider's treatment of declining revenue may matter more than its advertised maximum advance.

A business should understand what happens when revenues fall substantially or operations are interrupted.

9. Merchant Cash Advance vs Business Loan: Should You Compare Both?

A merchant cash advance is not necessarily the best funding structure simply because a business meets the provider's eligibility criteria.

Traditional MCAs are generally suited to short-term financing requirements supported by recurring eligible sales.

A conventional business loan may have a more predictable repayment schedule and could offer a lower overall cost.

For an equipment purchase, asset finance may better match the useful life of the machinery.

For an established business with unpaid customer invoices, invoice finance may be more appropriate.

A business with recurring but unpredictable working capital requirements might benefit from reviewing an overdraft or revolving credit facility.

The British Business Bank explains the potential cash-flow advantages of merchant cash advances while also highlighting higher financing costs, early repayment limitations and contractual risks.

Businesses should compare different financing products based on the purpose and expected benefit of the funding.

10. Are Merchant Cash Advance Providers Regulated in the UK?

The regulatory treatment of commercial merchant cash advances depends on their contractual structure.

Many traditional MCAs are structured as purchases of future business receivables rather than conventional regulated loans.

For example, Liberis states that its Business Cash Advance is a form of receivables finance and is not regulated by the Financial Conduct Authority. It also states that the Financial Ombudsman Service cannot consider complaints about that product.

Square similarly discloses that its UK Cash Advance product is not FCA-regulated.

YouLend is authorised by the FCA as a payment institution, but explicitly distinguishes that authorisation from regulation of its merchant financing product.

This distinction is important: FCA authorisation for one activity does not automatically mean every product offered by the company carries the same regulatory protections.

The regulatory position may also differ for conventional credit products offered to sole traders, smaller partnerships and other unincorporated businesses.

GOV.UK's consumer-credit guidance outlines relevant authorisation considerations.

Before entering a financing agreement, confirm the precise product structure, provider identity, applicable regulatory status, complaints rights and contractual enforcement provisions.

Frequently Asked Questions

What is the best merchant cash advance provider in the UK?

There is no single provider that is best for every business. Established options include 365 Finance, YouLend and Liberis, alongside financing programmes offered through PayPal, Shopify, Stripe, Square and Teya.

The best option depends on eligibility, total cost, collection percentages and contractual flexibility.

Which UK merchant cash advance provider is the cheapest?

No provider can reliably be identified as universally cheapest without reviewing actual quotations.

Funding fees vary according to the business and the proposed arrangement. A comparison should use the same funding amount and account for both total cost and repayment timing.

Which MCA providers do not require minimum repayments?

Square states that its UK Cash Advance product has no scheduled minimum repayments. Shopify Capital's UK merchant cash advances have no fixed remittance deadline.

Other programmes may impose minimum payment obligations. Confirm the current agreement before applying.

Which merchant cash advance providers fund the largest amounts?

YouLend advertises up to £2 million and Liberis advertises up to £1 million through its broader business funding programme.

These are provider-published maximums, not guaranteed approval amounts.

Can I compare MCA providers with bad credit?

Yes. Some providers consider trading performance and card receipts alongside credit information.

However, past defaults, banking conduct, existing financing and other financial risks can affect eligibility.

Can I apply to multiple MCA providers?

Businesses may be able to request more than one quotation, subject to each provider's application conditions.

Before submitting several applications, ask what credit checks may be performed and whether there are application or intermediary fees.

Is Shopify Capital the same as YouLend?

Shopify Capital is the customer-facing Shopify financing programme. Its UK merchant cash advances are provided through YouLend.

They should not be counted as entirely separate underlying financing companies in a lender comparison.

Is Stripe Capital a merchant cash advance?

Stripe Capital may offer either loans or merchant cash advances.

UK financing is provided by YouLend, and the precise product and repayment conditions are stated in the individual offer.

Is PayPal Working Capital better than a merchant cash advance?

PayPal Working Capital is itself a business cash advance product.

It is particularly relevant to eligible businesses with PayPal transaction history, but its minimum repayment requirement every 90 days should be included in any comparison.

Can I compare providers without changing my card processor?

Potentially. Some direct providers and financing arrangements may work with eligible existing processing relationships.

However, individual agreements can impose processing, settlement or collection requirements.

Check whether any changes would be required before accepting funding.

Do merchant cash advance providers charge interest?

Traditional merchant cash advances commonly use a fixed financing fee rather than periodic loan interest.

However, the absence of conventional interest does not mean the funding is free or inexpensive.

Does early repayment reduce the total cost?

Not necessarily.

Many fixed-fee arrangements require the originally agreed fee even when the balance is settled early.

Check the settlement terms before signing.

Are UK merchant cash advances suitable for new businesses?

Some newer businesses may qualify through eligible platform programmes, but many providers require meaningful trading and payment-processing history.

Without sufficient revenue evidence, alternative financing may be more suitable.

Is a merchant cash advance better than a business overdraft?

That depends on the funding requirement, total cost and repayment structure.

An overdraft may be more suitable for recurring cash-flow gaps, while an MCA may be considered for a defined short-term expense supported by future sales.

Final Verdict: How Should You Compare Merchant Cash Advance Providers?

The strongest merchant cash advance comparison is based on actual financing offers, not advertised funding limits or promotional claims.

For businesses seeking a direct quotation, 365 Finance, YouLend and Liberis provide starting points worth investigating.

For businesses already processing payments through PayPal, Shopify, Stripe, Square, Worldpay or Teya, an existing merchant funding programme may also be relevant.

However, three considerations should take priority:

First, compare the total amount repayable. A convenient application process is not evidence of competitive pricing.

Second, compare how deductions affect operating cash. A lower overall fee may still be difficult to manage if the provider collects a large percentage of sales.

Third, review the contractual obligations. Minimum payments, personal guarantees, processor restrictions and default provisions can materially affect the suitability of an offer.

The right merchant cash advance should address an identifiable commercial need while leaving sufficient funds to operate the business.

Compare Business Financing Options With Mehmi Financial Group

Looking for working capital for your UK business?

Mehmi Financial Group assists with commercial financing enquiries and can review potential funding pathways subject to participating UK provider availability and applicable requirements.

Whether your business operates in retail, restaurants, hospitality, e-commerce, vehicle repair or another commercial sector, an initial financing review can help establish which funding structures may warrant further consideration.

When contacting us, provide your business location, trading history, industry, approximate monthly turnover, card-processing revenue, requested financing amount and intended use of funds.

Our team can assess the initial enquiry and explain the appropriate next steps.

Contact Mehmi Financial Group — Request a Business Financing Review

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