Merchant cash advance for construction and trade businesses
By Helm, Funding Specialist
- Trade businesses processing card payments can qualify for an MCA
- Funds can cover materials, tools, vehicles, or hiring
- Repayments flex with your daily card revenue
- No personal guarantee or fixed monthly payments
- Approval typically within 24 to 48 hours
Construction and trade businesses often need capital quickly, whether for materials on a new job, equipment upgrades, or bridging the gap between completing work and getting paid. Traditional bank finance can be slow and inflexible, which does not suit the project-based nature of the industry.
A merchant cash advance offers a faster alternative for trade businesses that process card payments. You receive a lump sum upfront and repay it through a percentage of your daily card transactions.
Do construction businesses qualify for an MCA?
The key requirement for a merchant cash advance is regular card payment processing. While construction has traditionally been a cash-heavy industry, many trade businesses now take card payments for domestic work, smaller commercial jobs, and retail trade counters.
If your business processes at least £10,000 per month in card transactions, you are likely eligible.
- Domestic tradespeople taking card payments on site via mobile readers
- Trade counters and builders merchants with card terminals
- Property maintenance companies billing by card
- Specialist contractors invoicing smaller jobs by card
Common uses for trade business funding
There are no restrictions on how you spend a merchant cash advance. Trade businesses commonly use the funds for:
- Purchasing materials for upcoming jobs
- Buying or replacing tools and equipment
- Funding vehicle purchases or van fit-outs
- Hiring additional tradespeople for larger contracts
- Covering operating costs while waiting for invoice payments
- Marketing to attract new domestic or commercial clients
How repayments work for project-based businesses
Construction and trade work can be unpredictable. Some weeks are extremely busy while others are quieter between jobs. An MCA handles this naturally because repayments are a percentage of your daily card sales.
During busy weeks with lots of card payments, you repay more. During gaps between projects, repayments reduce. If you have a day with no card transactions, no repayment is taken.
MCA vs trade finance comparison
Here is how a merchant cash advance compares to other finance options available to construction businesses.
| Feature | Merchant Cash Advance | Trade Finance / Business Loan |
|---|---|---|
| Speed of funding | 24 to 48 hours | 1 to 6 weeks |
| Repayment | % of daily card sales | Fixed monthly instalments |
| Collateral | None | Often required |
| Personal guarantee | Not required | Usually required |
| Use of funds | Unrestricted | May be restricted |
Eligibility for construction and trade businesses
To qualify for a merchant cash advance, your trade business typically needs:
- At least three months of trading with card payment records
- A minimum of £10,000 in monthly card transactions
- A UK-registered business with an active card terminal or mobile reader
- No minimum credit score requirement
Frequently asked questions
Can a sole trader in construction get an MCA?
Yes. Sole traders are eligible as long as they process the minimum monthly card transaction amount through a card terminal or mobile reader.
What if most of my payments are by bank transfer?
Your MCA amount is based on card revenue only. If most of your income comes via bank transfer, the advance amount may be lower. You may want to consider encouraging more card payments from domestic clients.
Can I use an MCA to buy a work vehicle?
Yes. There are no restrictions on how you use the funds. Many trade businesses use MCAs to purchase or upgrade vehicles.
How much can a construction business borrow?
Most providers offer between one and one-and-a-half times your monthly card turnover. A business processing £15,000 per month in card payments could typically access between £15,000 and £22,500.