MCA Providers UK: Direct Funders, Platforms and Eligibility (2026)
By Mehmi Financial Group | Information reviewed 12 October 2026
Businesses searching for MCA providers in the UK have several funding options, including specialist merchant cash advance companies, payment-platform financing programmes and commercial finance brokers.
Established providers include YouLend, Liberis and 365 Finance. Eligible merchants may also access funding through PayPal Working Capital, Shopify Capital, Square Cash Advance and Stripe Capital.
However, these companies do not all operate in the same way. Some provide merchant cash advances directly, while others distribute financing through payment processors or commercial partners.
Understanding these differences can help UK businesses identify suitable providers, avoid unnecessary applications and compare the actual cost of funding.
This guide explains which MCA providers operate in the UK, their published eligibility requirements, how repayments work and what businesses should check before accepting an offer.
What Are MCA Providers in the UK?
A merchant cash advance (MCA) provider offers businesses an upfront payment in exchange for an agreed share of future sales.
Unlike a conventional business loan, a genuine merchant cash advance is typically structured as a purchase of future receivables rather than an ordinary loan with scheduled principal and interest payments.
Repayments are usually collected automatically as a percentage of qualifying card transactions or sales.
For example, a restaurant receiving £20,000 in merchant cash advance funding might agree to remit 10% of its eligible future card takings until the contracted total amount has been collected.
When sales increase, collections increase. During quieter periods, collections may decrease.
However, some MCA agreements have minimum payment requirements, even when sales fall.
The British Business Bank identifies merchant cash advances as a possible short-term financing option for businesses that process substantial debit and credit card transactions.
Which MCA Providers Operate in the UK?
UK businesses can generally explore three different funding channels: specialist finance providers, payment-platform offers and commercial finance intermediaries.
Specialist MCA Providers
These companies focus on merchant cash advances or revenue-based business financing. Businesses may be able to approach them directly or through participating brokers.
1. YouLend
YouLend provides sales-linked financing to UK small and medium-sized businesses.
The company advertises funding of up to £2 million, subject to underwriting.
YouLend also distributes financing through commercial partnerships involving e-commerce platforms, payment service providers and technology businesses.
Its financing model generally involves receiving an upfront amount and remitting an agreed percentage of future sales.
Potentially suitable businesses: Retailers, hospitality businesses, online sellers and other established companies generating regular revenue.
Important consideration: Confirm whether you are applying directly or through a partner. The underlying financing provider may be YouLend even where the offer appears under another platform's branding.
The funding fee, remittance percentage and contractual conditions should be examined before accepting an offer.
2. Liberis
Liberis offers revenue-based financing using business sales data.
Its published funding range is £1,000 to £1 million, depending on business eligibility and underwriting.
Liberis generally charges a fixed funding fee, with payments based on an agreed share of sales.
The company also discloses that a minimum monthly payment of up to 3% of the receivables purchased may apply. Any shortfall may be collected by direct debit.
Potentially suitable businesses: Established SMEs looking for sales-linked finance, including hospitality, retail and other businesses with recurring revenue.
Important consideration: Revenue-linked payments do not necessarily mean there is no minimum payment obligation. Applicants should review the monthly minimum provisions and the treatment of periods with unusually low sales.
3. 365 Finance
365 Finance provides merchant cash advances and revenue-based financing for UK businesses.
The company advertises funding between £10,000 and £500,000.
Its main merchant cash advance page sets out two published eligibility thresholds: at least six months of trading and at least £10,000 in monthly debit and credit card sales.
Repayments are typically calculated at between 5% and 15% of card takings.
Potentially suitable businesses: Restaurants, takeaways, pubs, cafés, convenience stores, independent retailers and other businesses with established card-processing revenue.
Important consideration: Card turnover is central to the assessment. A business generating £60,000 in total monthly revenue but only £5,000 in card payments may not meet the published card-sales threshold.
Published criteria should be confirmed before applying because other provider pages may contain different historical requirements.
MCA Providers Available Through Payment Platforms
Some UK businesses can access merchant cash advances through payment processors and e-commerce platforms they already use.
These programmes can reduce the need to submit transaction statements manually, although qualifying for an offer is not automatic.
4. PayPal Working Capital
PayPal Working Capital offers merchant cash advances based partly on a business's PayPal transaction history.
It advertises funding of up to £200,000 for qualifying applicants, or up to £300,000 for eligible repeat funding.
PayPal's published minimum requirements include a business account open for at least 90 days and at least £9,000 in eligible annual PayPal sales.
The provider charges one fixed fee and collects an agreed percentage of qualifying PayPal sales.
Potentially suitable businesses: E-commerce merchants and other UK businesses with an established PayPal sales history.
Important consideration: PayPal requires minimum repayments every 90 days. Businesses must account for these obligations even when their PayPal sales fluctuate.
5. Shopify Capital
Shopify Capital offers merchant cash advances to eligible UK Shopify merchants through YouLend.
Qualifying businesses can review available offers in the Finance section of their Shopify administration dashboard.
Funding and the total amount to remit depend on the individual merchant's offer.
Collections are based on an agreed percentage of qualifying daily Shopify sales.
Potentially suitable businesses: Shopify stores seeking funding for inventory, marketing, supplier purchases or expansion.
Important consideration: Shopify explains that its UK MCA generally has no fixed deadline for completing remittances. However, paying the advance off early does not automatically reduce the predetermined total funding cost.
Businesses should also review the contractual treatment of failed collections and payment-processing changes.
6. Square Cash Advance
Square Cash Advance provides merchant cash advances to eligible UK sole traders and partnerships using Square's payment services.
Square assesses factors including payment history and sales activity.
Its published eligibility guidance refers to businesses typically having at least £10,000 in Square card payments over the previous 12 months, with transactions on at least 20 separate days.
Collections are calculated as an agreed share of future Square card sales.
Potentially suitable businesses: Independent shops, cafés, barbers, beauty salons, small retailers and other eligible businesses using Square.
Important consideration: Square Cash Advance is available to qualifying sole traders and partnerships, rather than UK limited companies. Square states that the cash advance has no fixed repayment term or minimum payments.
This product should not be confused with Square business loans.
7. Stripe Capital
Stripe Capital provides financing offers to selected UK businesses using Stripe.
Eligibility is assessed using factors such as payment volume and payment history.
UK Stripe Capital financing is provided by YouLend.
The programme can involve different financing structures, so businesses must check whether their particular offer is a merchant cash advance or a loan.
Potentially suitable businesses: Online sellers, subscription businesses, digital service providers and merchants generating consistent Stripe transactions.
Important consideration: Stripe Capital is not universally available to every Stripe account holder. Businesses generally need an eligible offer in their dashboard before proceeding.
Direct MCA Providers vs Payment-Platform Funding
Choosing the right application channel is an important decision.
Specialist providers such as 365 Finance and Liberis may be worth approaching when a company has substantial card revenue and wants to investigate financing outside its existing payment provider.
Platform-based funding may be convenient when a business already uses PayPal, Shopify, Square or Stripe and has a personalised financing offer.
Commercial finance brokers can help businesses identify potentially suitable financing routes, prepare financial information and understand the differences between offers.
However, not every broker has access to every UK MCA provider. A broker's lender panel, fees and referral relationships should be disclosed clearly.
Businesses should also understand which entity is providing the actual funding.
For example, a merchant cash advance offered through Shopify Capital and one offered through Stripe Capital may both involve YouLend as the financing provider.
Receiving offers through two different platforms does not necessarily mean they come from two independent funders.
How to Choose an MCA Provider Based on Your Business
The most appropriate provider will often depend on the way your business collects customer payments.
Restaurants, Takeaways and Cafés
Restaurants and takeaways frequently receive a substantial proportion of revenue through card transactions.
That makes specialist card-sales-based financing worth evaluating.
Providers such as 365 Finance, Liberis and YouLend may be relevant, depending on eligibility.
However, restaurant owners should calculate whether daily collections will leave sufficient funds for wages, food purchases, rent, utilities and VAT obligations.
A business with high turnover but low margins can still struggle with MCA repayments.
Convenience Stores and Off-Licences
Convenience stores and off-licences commonly process large numbers of card transactions, which may support MCA eligibility.
Funding could be used for stock purchases, refrigeration, repairs or other operating needs.
However, high transaction volume does not necessarily indicate strong profitability.
Applicants should assess inventory margins, supplier payment schedules and any existing financing deductions.
Provider-specific sector eligibility must also be confirmed.
E-Commerce Businesses
Online sellers may have several routes to financing.
A Shopify merchant should check whether Shopify Capital is available, while businesses using PayPal or Stripe can investigate their respective funding programmes.
YouLend and Liberis may also be relevant for merchants that meet their underwriting requirements.
E-commerce businesses should account for product returns, refunds, chargebacks and seasonal advertising expenses when assessing repayment affordability.
Auto Repair Shops and MOT Centres
Garages, MOT centres, tyre shops and vehicle repair businesses may generate income from both card payments and invoices.
Where card turnover is substantial, MCA funding may be worth considering.
Businesses receiving most of their revenue through insurance payments, fleet invoices or bank transfers may be better suited to other commercial finance products.
Equipment financing may also be more appropriate when the funding purpose is to purchase lifts, diagnostic equipment or workshop machinery.
Beauty Salons, Barbers and Independent Retailers
Businesses with regular point-of-sale transactions may be candidates for sales-linked funding.
The suitability of an MCA depends on card turnover, margins, seasonality, existing obligations and the provider's eligibility criteria.
Businesses already using Square should first establish whether their legal structure is eligible for Square Cash Advance.
What Do UK MCA Providers Look at Before Approval?
MCA underwriting focuses on the business's ability to generate sufficient future receivables to support the proposed funding.
Providers may examine several factors.
Monthly card sales: Consistent card takings can support an application, but minimum requirements vary by provider.
Trading history: Some providers specify minimum trading periods, while payment-platform programmes assess eligibility using existing merchant records.
Banking conduct: Returned payments, overdraft usage and cash-flow difficulties may affect an underwriting decision.
Sales consistency: Underwriters may review fluctuations between busy periods and slower months.
Existing borrowing: Outstanding business loans, merchant cash advances and other repayment commitments may reduce available funding.
Business ownership: The legal structure, identity of beneficial owners and any guarantee requirements can influence eligibility.
Industry and use of funds: Certain business activities may be restricted, and providers may consider why the funding is needed.
An applicant may satisfy the basic sales requirement but still be declined after a broader underwriting review.
How Much Do MCA Providers Charge in the UK?
Merchant cash advances commonly involve a fixed funding fee rather than conventional periodic interest.
The critical distinction is between the cash received and the total amount the business must remit.
Example: A £30,000 Merchant Cash Advance
Consider a hypothetical UK business receiving £30,000.
If its agreement uses an illustrative factor rate of 1.25, the total remittance obligation would be £37,500.
The funding fee would therefore be £7,500.
Suppose the business agrees to remit 12% of qualifying sales and generates £40,000 in eligible monthly transactions.
Approximately £4,800 per month would be collected, assuming stable sales and no contractual adjustments.
At that rate, completing £37,500 of remittances would take approximately eight months.
If eligible sales fell to £20,000 per month, collections would decrease to approximately £2,400 per month. The repayment period would become longer unless minimum collections or other contractual provisions applied.
This example is illustrative, not a current offer or a representative UK MCA rate.
A 1.25 factor rate is not equivalent to a 25% annual percentage rate. The effective annualised cost depends on the timing and duration of repayments.
For example, paying a £7,500 fee over eight months produces a different effective financing cost from paying the same fee over eighteen months.
Businesses should compare MCA offers using the total funding fee, expected cash-flow deductions and the effective annualised cost where it can be calculated.
Questions to Ask MCA Providers Before Accepting Funding
Before signing a merchant cash advance agreement, review the following:
- How much cash will I receive? Confirm the net amount after any fees or deductions.
- What is the total amount to remit? Obtain the full contractual amount, not merely the advance figure.
- What percentage of sales will be collected? Understand which payment channels and transactions are included.
- Are minimum payments required? Ask what happens if sales fall substantially.
- Will early settlement reduce the fee? Some MCA products retain the full funding cost regardless of early completion.
- Is a personal guarantee required? Review the potential liabilities of directors, owners or other guarantors.
- Can I change my card processor? Understand any restrictions, notification obligations or consequences of switching payment providers.
- What happens if the business cannot continue trading? Examine default provisions, enforcement rights and collection procedures.
- Are there broker or referral fees? Confirm how intermediaries are compensated and whether any charges are payable by the borrower.
- Who is the contractual funding provider? Identify the actual provider, particularly for embedded financing offers.
Comparing these details can reveal meaningful differences between offers that initially appear similar.
Can You Get an MCA in the UK With Bad Credit?
A poor credit history does not automatically rule out every merchant cash advance.
Some providers place significant weight on actual business revenue, card transaction history and recent financial performance.
However, MCA funding is not guaranteed, and credit concerns may still affect approval.
Existing defaults, insolvency proceedings, persistent failed payments or excessive financing commitments can lead to a declined application.
Businesses should avoid advertisements claiming universal approval or guaranteed funding without underwriting.
A genuine MCA provider will still need to evaluate the commercial risks of purchasing future receivables.
Are MCA Providers Regulated by the FCA?
UK merchant cash advances structured as commercial purchases of future receivables are generally not regulated in the same way as consumer-credit loans.
For example, Liberis states that its Business Cash Advance is a form of receivables finance rather than a loan and is not FCA-regulated.
YouLend also distinguishes its FCA authorisation for payment services from its merchant financing activities.
Square states that Square Cash Advance is not regulated by the FCA.
However, businesses should not assume every product advertised as revenue-based finance or a cash advance has the same legal structure.
The applicable regulatory position depends on the actual agreement, activities involved and borrower circumstances.
Before accepting funding, applicants should establish which protections apply, whether any complaints process is available and what their contractual rights and obligations are.
MCA Providers vs Traditional Business Lenders
An MCA may be useful when a business receives regular card payments but prefers its collections to fluctuate with sales.
It may be less suitable where the business has thin profit margins, limited card revenue or a longer-term financing requirement.
For those businesses, alternatives may include unsecured business loans, revolving credit facilities, invoice finance, equipment financing or asset-based lending.
For example, a commercial workshop purchasing £80,000 in machinery should consider whether equipment financing over a defined term would be more appropriate than using a short-term advance funded by card transactions.
Similarly, a business awaiting payment from established commercial customers may benefit more from invoice finance than an MCA.
The correct funding structure depends on the purpose, financial condition and repayment capacity of the business.
Frequently Asked Questions About MCA Providers UK
How many MCA providers operate in the UK?
Multiple specialist finance providers and payment platforms offer merchant cash advances to eligible UK businesses. The market includes direct financing companies, embedded finance providers and commercial intermediaries.
Not every brand offering an MCA represents an independent funding source, because several platforms use third-party finance providers.
Which UK MCA providers accept limited companies?
Provider eligibility varies. Liberis, YouLend and 365 Finance may consider eligible incorporated businesses, subject to their requirements.
PayPal Working Capital also serves eligible UK businesses, including qualifying limited companies.
Square Cash Advance is specifically restricted to eligible sole traders and partnerships.
Can a business apply without a card machine?
Potentially. A physical card terminal is not always necessary where qualifying revenue comes through an online payment processor.
However, businesses relying primarily on invoices or bank transfers may need a different form of revenue-based financing or a conventional business funding product.
How much can I get from an MCA provider?
Funding amounts depend on the provider and the company's financial performance.
Published upper limits vary significantly. For example, 365 Finance advertises up to £500,000, Liberis up to £1 million and YouLend up to £2 million.
These are maximum advertised ranges, not amounts available to every applicant.
Are MCA providers the same as business loan lenders?
Not necessarily. Merchant cash advances are commonly structured around purchasing future sales receivables, while business loans involve borrowed funds under a lending agreement.
Both may provide working capital, but the legal terms, repayments and borrower obligations can differ substantially.
Can I have more than one merchant cash advance?
Some providers may allow additional funding or overlapping advances, subject to underwriting and contractual conditions.
However, multiple advances can place significant pressure on future card receipts.
Businesses should disclose existing commitments and avoid borrowing arrangements that depend on continually replacing one advance with another.
How long does MCA approval take in the UK?
Several providers advertise relatively short decision periods for qualifying applications.
Actual timelines depend on financial verification, payment processor information, business ownership checks and the provider's underwriting process.
No applicant should assume approval or a specific funding date until the offer has been formally confirmed.
Is there a minimum credit score for an MCA?
There is no single industry-wide minimum score. Different providers use different underwriting approaches.
Some emphasise recent sales history, while others consider credit information and broader financial risk.
The provider's published criteria and final underwriting decision determine eligibility.
Final Thoughts: Finding the Right MCA Provider in the UK
The UK merchant cash advance market includes specialist funders, embedded financing companies and payment-platform programmes.
YouLend, Liberis and 365 Finance are established specialist providers worth researching. Eligible businesses may also find funding through PayPal Working Capital, Shopify Capital, Square Cash Advance and Stripe Capital.
The right option depends on the company's trading history, payment processing arrangements, financial commitments and capacity to absorb collections from future revenue.
A business should not choose a provider based solely on the amount of funding advertised.
Instead, it should determine the full cost of the agreement, understand the repayment obligations and establish whether the financing will produce a measurable benefit.
Discuss Your UK Business Funding Requirements
Mehmi Financial Group is an independent commercial financing brokerage focused on helping businesses evaluate financing structures and potential funding routes.
If your business operates in the United Kingdom and you are exploring a merchant cash advance or another form of working capital, you can contact our team to confirm whether an appropriate UK referral arrangement is currently available.
Share your business location, funding requirement, trading history and intended use of funds so the team can determine the appropriate next step.