Merchant Cash Advance Without Personal Guarantee UK: 2026 Funding Guide
By Jodhbir Mehmi | Mehmi Financial Group
Published: 18 October 2026
Can you get a merchant cash advance without a personal guarantee in the UK? Yes, certain providers offer merchant cash advance (MCA) products without requiring a separate personal guarantee. However, not every UK provider waives this requirement, and the legal structure of your business matters.
For example, Square Cash Advance explicitly confirms that its UK product does not require a personal guarantee. However, Square currently offers this product to eligible sole traders and partnerships rather than limited companies.
By contrast, Liberis-backed merchant cash advance programmes distributed through ClearAccept and Cardnet require personal guarantees from applicants operating as limited companies or limited liability partnerships (LLPs).
This distinction is important for business owners who want access to working capital without personally guaranteeing their company's financial obligations.
A merchant cash advance typically provides upfront business funding in exchange for an agreed amount of future sales. Collections are commonly calculated as a percentage of qualifying debit and credit card transactions rather than through conventional fixed monthly loan instalments.
For eligible UK businesses, MCA funding may support inventory purchases, equipment replacements, refurbishment, supplier payments and short-term working capital.
However, unsecured financing does not automatically mean financing without a personal guarantee.
Some providers offer funding without requiring property or machinery as collateral but still ask company directors to accept personal liability.
This guide explains which UK merchant cash advance providers publicly disclose their guarantee policies, what personal guarantees mean for limited company directors, how eligibility works and what to check before signing a financing agreement.
Can You Get a Merchant Cash Advance Without a Personal Guarantee in the UK?
Yes. Certain UK merchant cash advance programmes explicitly operate without requiring a separate personal guarantee.
However, there is no universal requirement that MCA providers must waive director or owner guarantees.
Each provider establishes its own underwriting, legal and contractual conditions.
A business seeking a no-personal-guarantee MCA should understand three distinctions.
First, no personal guarantee means no separate contractual guarantee from an individual.
For a limited company, this may mean that the director is not personally guaranteeing the company's obligations under that specific financing agreement.
Second, no personal guarantee does not automatically mean no business liability.
The applicant remains subject to the obligations, warranties, restrictions and enforcement provisions in the funding contract.
Third, no personal guarantee does not provide the same protection to every type of business owner.
A sole trader is not legally separate from their business in the same way as a limited company.
Consequently, a sole trader can remain personally responsible for business obligations even where the finance provider does not require a separate personal guarantee.
This is why a no-guarantee MCA should be assessed according to the applicant's legal structure and the actual funding agreement.
What Is a Personal Guarantee on a Merchant Cash Advance?
A personal guarantee is a legally binding commitment under which an individual agrees to become personally responsible for specified obligations if the business fails to meet them.
In commercial finance, the guarantor is commonly a company director, owner or another individual acceptable to the provider.
According to the UK Insolvency Service's official personal guarantee guidance, guarantees may be secured against specific assets or unsecured and supported by the individual's personal financial standing.
A personal guarantee can expose the guarantor's own assets to financial claims.
These may include savings, investments, vehicles or potentially property, depending on the guarantee, enforcement process and applicable law.
Example: Limited company merchant cash advance with a personal guarantee
Consider a hypothetical UK limited company receiving a £30,000 merchant cash advance.
The agreement requires the business to remit a total of £37,500, including the financing fee.
The provider does not require a mortgage or charge over the director's home.
However, the director signs a personal guarantee.
If the company breaches the relevant contractual obligations and the conditions for enforcing the guarantee are satisfied, the provider may seek recovery from the director personally.
The amount recoverable would depend on the terms of the guarantee and applicable law.
Even though the MCA was advertised as unsecured, the director could still face personal financial exposure.
Example: Limited company merchant cash advance without a personal guarantee
Now consider a hypothetical limited company receiving the same £30,000 advance under an agreement that does not require its director to provide a personal guarantee.
The company remains responsible for fulfilling the funding agreement.
However, the director has not separately promised to pay the company's obligations merely because they signed the contract on the company's behalf.
This can preserve the distinction between the company's liabilities and those of the individual director.
Nevertheless, personal liability may still arise independently of a guarantee in certain circumstances, including relevant misconduct or breaches of legal duties.
The absence of a personal guarantee is therefore an important contractual distinction, not complete immunity from legal responsibility.
No Personal Guarantee vs No Collateral: What Is the Difference?
These terms are often confused in commercial financing.
Merchant cash advance without collateral
A financing arrangement without traditional collateral generally does not require the business to pledge specific physical assets such as property, vehicles, machinery or inventory.
Many MCA providers assess future customer receivables instead of relying primarily on the resale value of physical assets.
The British Business Bank identifies the ability to obtain funding without offering traditional physical security as a potential characteristic of merchant cash advances.
However, the provider may still require a personal guarantee.
Merchant cash advance without a personal guarantee
A no-personal-guarantee arrangement does not require an individual to provide a separate contractual promise to satisfy specified obligations personally.
However, the finance provider may still have contractual rights against the business, including rights relating to future receivables or payment-processing arrangements.
Can an MCA be unsecured but still require a director's guarantee?
Yes.
This is explicitly demonstrated by Liberis-backed programmes.
Bank of Scotland's commercial borrowing guidance explains that its Cardnet merchant cash advance, provided through Liberis, does not require conventional collateral.
However, limited companies and LLPs are asked to provide personal guarantees.
The distinction is clear: no physical security does not necessarily mean no personal guarantee.
For a more detailed explanation, read our Merchant Cash Advance Without Collateral UK guide.
Which UK Merchant Cash Advance Providers Do Not Require Personal Guarantees?
Published guarantee policies differ significantly between providers.
Importantly, a financing provider's website may describe its product as unsecured without explicitly stating whether a separate personal guarantee is required.
The following examples distinguish confirmed published guarantee policies from arrangements where the exact contract must be checked.
1. Square Cash Advance UK: No Personal Guarantee Required
Square Cash Advance is a verified example of a UK merchant cash advance programme that expressly states a personal guarantee is not required.
Square's published product information confirms that its Cash Advance product:
- Is structured as a purchase of future card sales.
- Does not require a separate personal guarantee.
- Uses existing Square payment-processing information to determine potential eligibility.
- Collects an agreed percentage of future eligible card sales.
- Does not have conventional fixed monthly instalments or scheduled minimum payments.
- Displays the funding amount and one-time funding fee before acceptance.
However, there is an important eligibility restriction.
Square Cash Advance UK is currently available to eligible sole traders and partnerships using Square, rather than limited companies.
The company identifies at least £10,000 in Square card-processing activity over the previous twelve months and transactions on at least twenty separate days as indicators that may support consideration.
Meeting these conditions does not guarantee an offer.
Square determines eligibility using its existing customer and payment information, and available amounts are shown to qualifying businesses.
Does Square's no-guarantee policy eliminate personal liability?
Not necessarily.
A sole trader ordinarily remains personally responsible for business obligations.
Therefore, Square's decision not to require a separate guarantee should not be interpreted as a promise that a sole trader's personal assets are protected from every type of business claim.
The distinction matters most when comparing the legal consequences for different business structures.
Who may find it suitable?
Eligible sole traders and partnerships already processing consistent payments through Square, provided the advance is affordable and the business understands the terms.
2. Liberis: Personal Guarantees Required Under Certain Programmes
Liberis provides revenue-based business funding through direct and partner distribution arrangements.
Its products are commonly structured around future sales and are marketed without conventional physical collateral.
However, some of its partner programmes explicitly require personal guarantees.
For example, ClearAccept's Revenue Finance FAQs confirm that its Liberis-backed product requires a personal guarantee when the applicant is a limited company or LLP.
ClearAccept also states that its programme is unsecured and does not require traditional collateral.
This demonstrates that the two conditions are separate.
Does every Liberis programme require the same guarantee?
The public information confirms a requirement under specified distribution programmes, but it should not be treated as proof that every Liberis product has identical terms.
Liberis distributes finance through multiple partners and offers different funding products.
The applicant should confirm the guarantee requirement for the exact funding agreement presented.
Who may find it suitable?
Established businesses willing to consider the relevant guarantee conditions and other contractual obligations.
For directors specifically seeking no-PG finance, any programme requiring a guarantee may be unsuitable.
3. Worldpay and Cardnet: Unsecured Does Not Mean No Guarantee
Merchant cash advances offered through Worldpay and certain Cardnet arrangements are provided by Liberis.
Published information from Bank of Scotland explains that the Cardnet product is unsecured but requires personal guarantees from limited companies and LLPs.
This should be considered before assuming a familiar payment provider's financing product automatically protects directors from personal liability.
The contract should identify the actual finance provider and explain who must sign the guarantee.
4. 365 Finance: Confirm the Guarantee Requirement
365 Finance offers merchant cash advances to eligible UK businesses.
The company markets its MCA as unsecured funding and states that businesses do not need to pledge conventional physical assets.
Its main eligibility criteria include at least six months of trading and £10,000 in average monthly card sales.
However, its published unsecured funding description does not establish a universal exemption from personal guarantees.
Consequently, 365 Finance should not automatically be categorised as a confirmed no-personal-guarantee provider.
Applicants should request written confirmation about the director guarantee requirement for the particular offer.
The same principle applies to any provider that advertises unsecured cash advances without clearly addressing individual liability.
5. Shopify Capital UK: Review the Receivables Purchase Agreement
Shopify Capital offers merchant cash advances to eligible UK Shopify merchants through YouLend.
The funding is structured as a purchase of future sales receivables.
Eligible businesses can review potential offers through their Shopify administration account.
The programme calculates collections as an agreed percentage of gross daily sales until the contractual amount has been remitted.
However, Shopify's general UK product guidance does not establish a universal no-personal-guarantee rule.
Applicants should review the actual Receivables Purchase Agreement and accompanying documents to establish whether any guarantee, indemnity or additional personal undertaking is required.
Do not assume that platform-integrated financing automatically means directors have no personal obligations.
6. PayPal Working Capital: Do Not Confuse Cash Advances With Business Loans
PayPal Working Capital is a UK business cash advance based on eligible PayPal sales and account history.
The programme currently requires an eligible business to have maintained a PayPal Business account for at least 90 days and processed at least £9,000 in qualifying annual PayPal sales.
Repayments are based on a percentage of PayPal sales, with minimum repayment requirements every 90 days.
However, the programme's public eligibility description should not be treated as confirmation of a universal no-personal-guarantee policy.
Applicants must review the product's actual contractual conditions.
It is also important to distinguish PayPal Working Capital from PayPal Business Loan.
PayPal's separate Business Loan programme explicitly requires a personal guarantee from company directors.
They are different funding products with different contractual arrangements.
Why Do Some MCA Providers Require Personal Guarantees?
Merchant cash advance providers accept commercial risk by advancing money based on expected future sales.
The funding provider must evaluate whether the business is likely to generate the necessary receivables and comply with the contract.
A personal guarantee can provide additional protection against particular risks.
Limited trading history
A business with only a few months of operations may have limited financial information.
A provider may consider a guarantee necessary where historical sales do not establish sufficient confidence.
However, some providers simply decline businesses with inadequate trading histories rather than offering funding with a guarantee.
Limited company liability
A limited company is generally a separate legal entity from its directors and shareholders.
Without a separate guarantee or another legal basis for liability, the company's contractual obligations do not ordinarily become personal debts of its directors.
A provider may therefore request a guarantee to create an additional enforceable commitment from an individual.
Poor business credit history
Unpaid judgments, insolvency concerns and previous financing defaults can increase underwriting risk.
Some providers may ask for additional protections when evaluating a higher-risk application.
Others may decline the applicant regardless of whether a guarantee is available.
Substantial funding amounts
A provider may apply stricter underwriting when the proposed advance is substantial relative to the business's monthly card sales.
However, there is no universal UK funding amount above which every MCA provider requires a personal guarantee.
Existing financial commitments
A business may already have equipment leases, term loans, overdrafts or merchant cash advances.
These obligations can affect repayment affordability and the provider's overall assessment.
A guarantee may be part of a provider's risk policy, but it does not make an otherwise unaffordable advance appropriate.
How Do MCA Personal Guarantees Work for UK Limited Companies?
A limited company has a legal identity separate from its shareholders and directors.
Under ordinary circumstances, its commercial debts belong to the company rather than automatically becoming the personal obligations of individual directors.
The UK Insolvency Service confirms this distinction.
However, where a director signs a personal guarantee, the director may become personally responsible for the obligations covered by that guarantee.
Full personal guarantee
A full guarantee may expose an individual to the entire covered obligation, subject to the wording and applicable law.
For example, a director might guarantee amounts due under a business financing agreement, including specified charges and enforcement costs.
The precise extent of liability must be established from the signed document.
Limited personal guarantee
Some commercial guarantees are restricted to a specified amount or set of obligations.
For example, a director might agree to a hypothetical maximum guarantee of £15,000.
However, the agreement must be reviewed to establish whether that amount is an absolute cap or whether interest, legal costs or other charges can be claimed in addition.
A limited guarantee is still a personal guarantee.
Joint and several guarantees
Where multiple directors or owners provide guarantees, the agreement may establish joint and several liability.
This can allow the creditor to seek the covered amount from one guarantor rather than being restricted to each person's ownership percentage.
A director should not assume that owning 25% of the shares limits their liability to 25% of a jointly guaranteed obligation.
Guarantees and indemnities
Some agreements contain indemnities or other undertakings alongside guarantees.
An indemnity may create a separate contractual payment obligation under specified circumstances.
Consequently, an agreement should not be treated as free of personal obligations merely because it does not contain a section labelled "Personal Guarantee".
Applicants should review the legal effect of every document they are asked to sign.
Does No Personal Guarantee Mean Your Home Is Protected?
Not automatically.
A genuine no-personal-guarantee agreement may avoid creating the additional personal contractual obligation that a guarantee would otherwise impose.
However, the wider legal circumstances still matter.
Limited company without a director guarantee
Where a limited company enters into an MCA without a separate director guarantee, the company remains responsible for its contractual obligations.
The director's home is not automatically security for the agreement merely because the director owns or manages the business.
However, this does not eliminate other potential bases of personal liability under law.
Limited company with a director guarantee
A personal guarantee can expose the director's own assets to claims if the guarantee becomes enforceable.
The director may face personal liability even if no mortgage or charge was originally registered against their home.
The practical consequences depend on the contractual wording, enforcement process and financial circumstances.
Sole trader without a separate guarantee
A sole trader generally has unlimited personal liability for business obligations.
This means that a funding provider not requiring a separate personal guarantee does not necessarily protect the individual's personal assets.
The most meaningful way to assess personal risk is to examine both the business structure and the full financing agreement.
Independent UK legal advice is advisable where substantial personal assets or guarantees may be affected.
How Much Can You Get Without a Personal Guarantee?
There is no universal maximum merchant cash advance amount for businesses seeking to avoid personal guarantees.
The amount depends on the particular provider and product.
For example, Square Cash Advance offers eligible customers amounts determined by their existing Square processing history and internal eligibility assessment.
It does not guarantee that every applicant can obtain a particular amount simply because no personal guarantee is required.
Other providers may offer larger overall funding limits while applying different guarantee policies.
A business should therefore avoid assuming that a £50,000, £100,000 or £200,000 MCA will automatically be available without a director guarantee.
What affects the amount offered?
Providers may assess:
- Average monthly eligible card turnover.
- Trading history and business stability.
- Transaction consistency and seasonality.
- Refunds and chargebacks.
- Existing MCA and loan obligations.
- Business bank account performance.
- Applicant legal structure.
- The requested funding amount.
- Available cash flow after normal expenses.
Some providers assess platform sales rather than conventional terminal transactions.
The correct funding amount should reflect the business's financial capacity and a defined commercial requirement.
A no-guarantee agreement can still create substantial repayment pressure.
How Much Does an MCA Without a Personal Guarantee Cost?
Merchant cash advance pricing varies by provider and individual offer.
The absence of a personal guarantee does not establish a standard financing fee.
Some providers price advances using a fixed funding charge or a total purchased-receivables amount.
For example, consider a hypothetical £20,000 merchant cash advance with a factor rate of 1.25.
The total contractual amount is:
£20,000 × 1.25 = £25,000.
The business receives £20,000 and agrees to remit £25,000.
The funding fee is £5,000, assuming no additional charges.
If the provider collects 10% of monthly eligible card sales and the business processes £25,000, approximately £2,500 would be collected each month.
At constant sales, collecting £25,000 would take approximately ten months.
If eligible monthly sales fall to £15,000, collections would decrease to approximately £1,500 under a straightforward percentage-of-sales arrangement.
However, the agreement may include additional payment requirements.
The example is hypothetical and does not reflect a specific provider quotation.
Is the factor rate the same as APR?
No.
A factor rate describes the total contractual amount relative to the advance received.
It is not equivalent to an annual percentage rate.
In the example above, the £5,000 funding charge represents 25% of the £20,000 advance.
However, that is not a 25% annual interest rate.
The effective annualised financing cost depends on when and how the collections occur.
A relatively short repayment period can produce a significantly higher annualised economic cost than the simple funding-fee percentage suggests.
Does no personal guarantee mean higher financing costs?
Not necessarily.
A provider may consider guarantee requirements as part of its overall risk policy, but there is no universal market rule that MCAs without personal guarantees must cost more.
The actual pricing can depend on transaction history, provider risk appetite, expected sales and other factors.
Applicants should compare written offers rather than assume that a guarantee automatically produces a particular discount.
Are MCA Repayments Different Without a Personal Guarantee?
The absence of a separate personal guarantee does not necessarily change the provider's collection mechanism.
Traditional merchant cash advances generally collect an agreed percentage of qualifying sales.
However, different providers may impose different minimum repayment provisions.
Square Cash Advance
Square's published UK Cash Advance terms state that the product does not require conventional monthly minimum payments.
Collections fluctuate with eligible Square card sales.
PayPal Working Capital
PayPal Working Capital requires a minimum amount to be repaid every 90 days.
A sales slowdown does not automatically eliminate those minimum payment obligations.
Liberis
Liberis publishes a monthly minimum collection requirement for certain Business Cash Advance arrangements.
Under its published disclosures, that minimum can be up to 3% of purchased receivables, with shortfalls potentially collected through direct debit.
These examples show why repayment flexibility should be reviewed separately from guarantee requirements.
An agreement without a personal guarantee can still be expensive or difficult for a business to manage during a prolonged revenue decline.
What Happens if the Business Fails and There Is No Personal Guarantee?
The consequences depend on the legal structure of the applicant and the financing contract.
Limited company with no personal guarantee
If a limited company becomes insolvent, the funding provider may have contractual claims against the company.
The treatment of those claims depends on the financing structure, relevant security or receivables rights and the insolvency process.
The director does not automatically become personally responsible for the company's contractual obligations merely because they were a director.
However, the Insolvency Service identifies situations where directors can face personal liability independently of a guarantee, including relevant wrongful trading, fraudulent trading and other misconduct.
See Director Duties Upon Insolvency.
Sole trader with no separate guarantee
A sole trader is not legally separate from the individual carrying on the business.
Therefore, the absence of a separate personal guarantee does not remove the ordinary personal responsibility associated with sole-trader business obligations.
What happens if sales simply decline?
A genuine percentage-of-sales arrangement may collect less when eligible sales decrease.
However, that does not mean the contractual obligations disappear.
Some providers impose minimum payments or conditions requiring the business to continue processing revenue through the agreed platform.
The business should establish whether declining sales, temporary closure, payment diversion or insolvency creates a contractual default.
No provider should be assumed to forgive an outstanding obligation merely because a business has stopped trading.
What Should You Look for in a No-Personal-Guarantee MCA Agreement?
The written agreement is more important than the financing advertisement.
Before accepting an offer, ask the provider to confirm these matters in writing.
1. Is a personal guarantee required?
Ask for an explicit answer covering every director, shareholder, partner or other individual involved.
2. Are any individuals signing in a personal capacity?
Establish whether a director is signing solely as an authorised company representative or also entering into a personal obligation.
3. Is there a separate indemnity?
Check whether any document imposes personal payment obligations even if it is not titled a guarantee.
4. Are there guarantees covering only specific misconduct or breaches?
If a provider describes an obligation as a limited or performance guarantee, request the precise terms and an explanation of what can trigger liability.
5. Does the agreement grant security over assets or receivables?
A no-guarantee arrangement may still contain company-level security or contractual rights over payment settlements.
6. What is the exact total funding cost?
Confirm the amount received, total contractual repayment and all charges.
7. Are there minimum payment requirements?
Ask whether a minimum amount must be collected even when sales decrease.
8. What happens if the business stops trading?
Understand how the agreement treats a temporary closure, permanent cessation or insolvency.
9. Can the business change payment processors?
Some MCA agreements restrict payment diversion or require the business to maintain an agreed settlement arrangement.
10. What happens if the company breaches the contract?
Review the events of default, termination provisions, acceleration clauses and enforcement rights.
A business director should not sign a materially significant agreement without understanding these obligations.
Can You Negotiate a Personal Guarantee Out of an MCA?
Potentially, depending on the provider and programme.
Some funding companies apply standard contracts that do not permit changes to their guarantee requirements.
Others may be willing to consider alternative structures or protections, depending on the business's financial strength and the funding request.
For example, an established limited company with several years of reliable trading, substantial card turnover and strong cash reserves may have a different financial profile from a newly incorporated business with limited operating history.
However, strong business performance does not automatically require a provider to waive its standard guarantee policy.
A finance provider may simply decline an application that does not meet its contractual requirements.
Can you offer a lower funding amount instead?
A smaller advance may reduce the amount of financial exposure involved.
However, it does not automatically eliminate a personal guarantee requirement.
If the provider requires a guarantee for all limited company applicants, requesting less funding may not change the policy.
Can a guarantee be capped?
Some commercial guarantees are limited to a specified amount or defined obligations.
Whether a provider will consider this depends on its underwriting and contractual policy.
A capped guarantee remains a personal guarantee and should not be represented as a no-PG agreement.
Can another director provide the guarantee?
Some providers may consider a guarantee from another suitable individual.
However, this does not create no-guarantee financing.
It simply changes which individual accepts potential personal liability.
The provider may also assess the wider ownership and management structure.
Applicants should not conceal beneficial ownership or relevant credit information in an attempt to avoid underwriting requirements.
Alternatives to an MCA Without a Personal Guarantee
A merchant cash advance is not the only commercial finance product that may be available without a director guarantee.
However, guarantee requirements vary across lenders, business structures and financing products.
Business loans without personal guarantees
Some commercial lenders may consider business loans without director guarantees for eligible established companies.
These arrangements can depend on company profitability, financial strength, credit history and the requested amount.
A business loan may provide a longer repayment term or a different overall cost structure from an MCA.
However, applicants must verify whether the loan is genuinely offered without personal guarantees.
Equipment financing
Equipment finance may be suitable where the funding is required to purchase commercial machinery, vehicles or other eligible assets.
The finance provider may rely partly on the financed asset as security.
However, some equipment finance agreements still require director guarantees.
The applicant should confirm the actual security and guarantee conditions.
Invoice finance
Invoice finance may be appropriate for businesses receiving substantial payments through customer invoices rather than card transactions.
The finance provider assesses qualifying receivables and the relevant funding structure.
Some invoice finance agreements may be available without personal guarantees, while others include them.
Asset-based lending
Larger or more established businesses may be able to explore finance against eligible business assets.
Depending on the arrangement, collateral may include receivables, inventory, machinery or other assets.
A company-level security package does not necessarily remove the need for director guarantees, so terms must be checked.
Growth Guarantee Scheme
The British Business Bank's Growth Guarantee Scheme supports eligible UK businesses through accredited lenders offering various financing products.
However, the government guarantee does not mean borrowers or directors are automatically exempt from personal guarantees.
The British Business Bank confirms that participating lenders can require personal guarantees in accordance with their normal commercial lending practices.
The scheme also prohibits lenders from taking the borrower's principal private residence as security within the scheme.
That restriction must not be confused with a universal waiver of personal liability.
A government-backed lender guarantee protects the lender against a specified portion of eligible losses. The borrower remains responsible for its contractual obligations.
How to Apply for a Merchant Cash Advance Without a Personal Guarantee UK
Step 1: Confirm the business structure
Identify whether the applicant is a limited company, LLP, sole trader or partnership.
This determines the starting point for analysing liability and programme eligibility.
Step 2: Make no personal guarantee a clear requirement
Tell the provider that the business is seeking funding without any separate personal guarantee from its directors or owners.
Ask whether that is supported under the proposed programme.
Do this before supplying extensive documents or proceeding with full underwriting.
Step 3: Review qualifying card revenue
Calculate average monthly eligible card sales using recent payment-processing statements.
Separate card transactions from bank transfers, cash receipts and other income sources.
For payment-platform programmes, use the provider's definition of qualifying sales.
Step 4: Prepare financial information
Depending on the provider, relevant documents may include business bank statements, merchant-processing reports, company registration information, identification details and existing financing statements.
Some integrated payment platforms already have much of this information.
Step 5: Calculate the funding amount required
Determine how much money the business needs and why.
For example, a restaurant may require £20,000 for replacement equipment and stock, while a retail business may require a different amount for inventory.
The requested advance should reflect an actual commercial need.
Step 6: Assess affordability
Estimate the amount of card revenue the provider would collect each month.
Account for wages, suppliers, rent, VAT, other taxes and existing financial obligations.
Consider how collections would affect the business during a quieter trading period.
Step 7: Request written confirmation of guarantee conditions
Do not rely only on a verbal statement that the product is unsecured.
Ask whether any director or owner must sign a guarantee, indemnity or other personal undertaking.
If the provider cannot meet the requirement, consider whether another financing product would be more appropriate.
Step 8: Review the full agreement
Before accepting funding, confirm the total financing cost, collection percentage, contractual restrictions, default conditions and applicable personal or company liability.
Where appropriate, obtain independent UK legal advice.
The application remains subject to provider eligibility, underwriting and final approval.
For application preparation, read Merchant Cash Advance Application UK.
Are Merchant Cash Advances Without Personal Guarantees FCA Regulated?
Not every UK merchant cash advance is regulated by the Financial Conduct Authority.
Some products are structured as purchases of future business receivables rather than traditional credit agreements.
For example, Square states that its UK Cash Advance product is not regulated by the FCA.
Liberis also discloses that its Business Cash Advance is receivables finance rather than a conventional loan and is not FCA regulated.
However, regulatory treatment depends on the particular agreement and the relevant parties.
Different business finance products, particularly certain credit agreements involving individuals and smaller partnerships, may fall within the consumer credit regulatory framework.
The absence of a personal guarantee does not determine whether a product is regulated.
Similarly, the presence of a guarantee does not automatically establish regulatory protection.
Businesses should identify the funding provider, understand the legal structure of the agreement and establish the available complaints and dispute-resolution arrangements.
The FCA Firm Checker can assist with verifying firm authorisations where relevant.
Authorisation for one financial activity does not mean that every commercial financing product offered by the firm is regulated.
Frequently Asked Questions About Merchant Cash Advances Without Personal Guarantees
Can I get a merchant cash advance without a personal guarantee in the UK?
Yes. Some UK programmes do not require a separate personal guarantee. Square Cash Advance is a verified example. However, its UK product is restricted to eligible sole traders and partnerships, and other providers have different requirements.
Can a UK limited company get an MCA without a director guarantee?
Potentially, if a provider offers an agreement without that requirement. However, not all providers will do so. Certain Liberis-backed programmes expressly require personal guarantees from limited companies.
Is a no-personal-guarantee MCA the same as unsecured finance?
No. Unsecured funding generally refers to the absence of traditional asset collateral. A provider may still require a personal guarantee or obtain contractual rights over receivables.
Does 365 Finance require a personal guarantee?
365 Finance markets its MCA as unsecured funding without traditional physical collateral. However, that description does not conclusively establish a universal no-personal-guarantee policy. Applicants should request written confirmation for their specific agreement.
Does Square Cash Advance require a personal guarantee?
No. Square expressly states that its UK Cash Advance product does not require a separate personal guarantee. However, the product is currently available to eligible sole traders and partnerships rather than limited companies.
Does Liberis require a personal guarantee?
Some Liberis-backed programmes do. For example, its ClearAccept and Cardnet distribution arrangements require personal guarantees from limited companies and LLPs. Other programme terms should be checked individually.
Does Shopify Capital UK require a personal guarantee?
The general UK Shopify Capital product documentation does not establish a universal no-personal-guarantee policy. Applicants should review the actual YouLend Receivables Purchase Agreement and accompanying documents before accepting an offer.
Can I get an MCA without a personal credit check?
Some programmes rely primarily on existing business transaction data and do not require conventional personal credit checks. Others examine company and individual credit information.
No personal credit check and no personal guarantee are separate conditions.
Can I get an MCA without a personal guarantee if I have bad credit?
Possibly, depending on the provider, product and business structure. However, bad credit, defaults and existing obligations can still affect eligibility.
A provider's no-guarantee policy does not establish that all applicants will be approved.
Can I get a £50,000 MCA without a personal guarantee?
Potentially, depending on available offers and provider policy. There is no universal rule that £50,000 advances automatically qualify for no-guarantee treatment.
Can I get a £100,000 merchant cash advance without a guarantee?
Potentially, but the amount of funding and guarantee conditions depend on the programme. A provider advertising advances over £100,000 does not necessarily offer those amounts without director guarantees.
Can a sole trader benefit from a no-personal-guarantee MCA?
A sole trader may qualify for a product that does not require a separate guarantee. However, the individual ordinarily remains personally responsible for the obligations of their business.
Can a partnership apply without a guarantee?
Some programmes accept partnerships without separate personal guarantees. Nevertheless, the personal liability of the partners depends on the legal structure and relevant law.
A traditional partnership and an LLP do not have identical liability characteristics.
Can I protect my house by refusing to sign a guarantee?
Avoiding a personal guarantee can remove one potential basis for personal liability, but it does not eliminate every legal risk.
Sole traders and individuals exposed to other liabilities may still face claims against personal assets.
A UK solicitor should review the agreement if personal property exposure is a major concern.
What happens if the company closes with an outstanding MCA?
The consequences depend on the contract, the company's legal structure and the circumstances of closure.
The provider may have claims against the company or rights connected to purchased receivables.
A director does not automatically become liable for every company obligation without a separate legal basis, but misconduct and other circumstances can create personal liability.
Do no-personal-guarantee MCAs cost more?
Not necessarily. Pricing depends on the provider's underwriting and product terms. There is no universal published surcharge applying to every MCA without a guarantee.
Are no-guarantee MCAs available to restaurants and retail shops?
Potentially. Businesses with consistent eligible card sales may meet the requirements of suitable programmes.
However, industry eligibility and guarantee policies must be confirmed with the actual provider.
Does a personal guarantee automatically make a merchant cash advance unsuitable?
Not necessarily.
A guarantee may be acceptable to an informed business owner after evaluating the potential personal exposure.
However, the director should understand the full financial and legal consequences before accepting that obligation.
Can a director negotiate a capped guarantee?
Some providers may consider limited guarantees, depending on their policies.
However, a capped guarantee remains a personal guarantee and does not satisfy a requirement for financing with no separate personal guarantee.
Should I obtain legal advice before accepting an MCA?
Independent legal advice is particularly important where the agreement includes substantial personal guarantees, indemnities, security interests or complex default provisions.
Applicants should not rely solely on a provider's marketing description when evaluating personal financial exposure.
Explore UK Business Financing Without a Personal Guarantee With Mehmi Financial Group
If your business is considering a merchant cash advance but you do not want to provide a director's personal guarantee, the starting point is identifying the exact financing requirements.
Mehmi Financial Group is a Canada-based commercial financing brokerage, not a bank or direct merchant cash advance provider.
We help eligible businesses explore potential commercial financing opportunities through independent third-party providers, subject to jurisdiction, product availability and applicable legal requirements.
For UK businesses seeking no-personal-guarantee finance, potential options must be assessed individually.
Not every provider offers financing without guarantees, and no particular advance amount or structure can be promised.
An initial enquiry should include:
- Your business's UK location and industry.
- Whether you operate as a limited company, LLP, sole trader or partnership.
- How long the business has been trading.
- Approximate monthly card turnover.
- The amount of financing required.
- The intended use of funds.
- Whether avoiding all separate personal guarantees is a firm requirement.
- Details of existing business financing commitments.
Any UK financing introduction or referral is subject to confirmation that an appropriate and permitted provider arrangement is available.
Do not send sensitive financial statements or identity documents through an unsecured general enquiry. Request the appropriate secure submission process first.
Contact Mehmi Financial Group — Discuss Your Business Financing Requirements
Final Thoughts: Can You Get a Merchant Cash Advance Without a Personal Guarantee in the UK?
Yes, merchant cash advances without separate personal guarantees exist in the UK. However, availability depends on the provider, business structure and individual funding agreement.
Square Cash Advance is a verified example of a programme that explicitly does not require a personal guarantee, but its UK eligibility is currently restricted to sole traders and partnerships.
Other providers take a different approach.
Liberis-backed programmes through ClearAccept and Cardnet require personal guarantees from limited companies and LLPs, despite being marketed as unsecured financing.
The most important distinction is that unsecured funding, no physical collateral and no personal guarantee are not interchangeable.
For UK limited company directors, the written financing agreement determines whether a separate personal guarantee or indemnity has been given.
A no-guarantee agreement can preserve an important distinction between company obligations and personal contractual liability, but it does not eliminate every business or legal risk.
Before accepting any merchant cash advance, confirm whether a personal guarantee is required, understand the total financing cost and establish whether future sales can comfortably support collections.
Compare available funding arrangements on their actual written terms, and obtain independent legal advice where necessary.
The objective should be to secure appropriate commercial financing without accepting personal financial exposure that the business owner does not understand or intend to take on.