Card machine loans in the UK: what they are and how they work
By Helm, Funding Specialist
- A card machine loan is funding repaid through your card terminal sales
- It is essentially another name for a merchant cash advance
- Repayments are automatic and flex with your daily card revenue
- Most are approved within 24 to 48 hours
- No personal guarantee or collateral required
A card machine loan is a type of business funding where you receive a lump sum and repay it through a percentage of your daily card machine transactions. The term is used interchangeably with merchant cash advance and merchant loan.
If your business takes card payments through a terminal, mobile reader, or online gateway, you can use that revenue stream to access fast, flexible funding.
How card machine loans work
The process is simple. A provider reviews your card machine transaction history, makes you an offer, and deposits funds into your account. Repayments are then collected automatically as a percentage of your daily card sales.
- Apply with your card processing history
- Receive an offer with a clear total repayment amount
- Funds deposited within 24 to 48 hours
- A fixed percentage of daily card sales is deducted automatically
- No fixed monthly payments or manual transfers
Who qualifies?
If you have a card machine and process regular transactions, you likely qualify.
- UK-registered business (any structure)
- At least 3 months of card machine history
- Minimum £10,000 per month through your card machine
- Any card terminal provider accepted
What does a card machine loan cost?
Costs are expressed as a factor rate, typically between 1.15 and 1.50.
| Amount | Factor Rate 1.20 | Factor Rate 1.30 | Factor Rate 1.40 |
|---|---|---|---|
| £10,000 | £6,000 | £6,500 | £7,000 |
| £10,000 | £12,000 | £13,000 | £14,000 |
| £20,000 | £24,000 | £26,000 | £28,000 |
| £50,000 | £60,000 | £65,000 | £70,000 |
Card machine loan vs bank loan
Here is how card machine loans compare to traditional bank loans.
| Feature | Card Machine Loan | Bank Loan |
|---|---|---|
| Speed | 24 to 48 hours | 2 to 8 weeks |
| Repayment | % of daily card sales | Fixed monthly |
| Collateral | None | Often required |
| Personal guarantee | Not required | Usually required |
| Credit check | Soft check only | Full credit check |
| Approval rate | High | Lower for SMEs |
Which card machines are compatible?
Card machine loans work with virtually all UK card terminal providers.
- Worldpay
- Barclaycard
- Square
- SumUp
- Zettle (PayPal)
- Dojo
- Takepayments
- Elavon
- Stripe (online)
- Most other UK processors
Frequently asked questions
Is a card machine loan the same as a merchant cash advance?
Yes. The terms are used interchangeably. Both refer to funding repaid through your card transaction revenue.
Do I need to switch card machine provider?
No. Most card machine loan providers work with your existing terminal and processor.
Can I get a card machine loan with bad credit?
Yes. Approval is based on your card machine revenue, not your credit score.
How long does repayment take?
Typically 3 to 12 months, depending on your card volume and the repayment percentage.