Merchant cash advance declined? Here is what to do next
By Helm, Business Funding Specialists
- Low or inconsistent card transaction volume is the most common reason for decline
- A decline from one provider does not mean all providers will say no
- Building up your card transaction history can improve your chances within a few months
- There may be alternative funding options available even after a decline
Receiving a decline for any kind of funding is disappointing. But with a merchant cash advance, it does not have to be the end of the road. Unlike a bank loan decline, which can stay on your credit file, most MCA providers use soft credit checks that leave no trace.
Understanding why you were declined is the first step towards getting approved, whether that means reapplying to the same provider, trying a different one, or exploring alternative funding.
Common reasons for decline
Merchant cash advance providers assess applications based on specific criteria. If you have been declined, it is likely for one or more of the following reasons.
- Insufficient card transaction volume: most providers require a minimum of £10,000 per month
- Too short a trading history: many require at least three to six months of card processing data
- Inconsistent revenue: large fluctuations in monthly card turnover can flag concerns
- Existing financial obligations: outstanding advances, high debt levels, or active CCJs
- Business sector concerns: some providers avoid certain higher-risk sectors
- Incomplete application: missing documents or inaccurate information
Steps to take after a decline
A decline does not mean you are permanently excluded from merchant cash advance funding. There are practical steps you can take.
- Ask the provider for specific feedback on why you were declined
- Review your card transaction volume and identify ways to increase it
- Wait two to three months to build up more trading data before reapplying
- Check that all your business details and documentation are accurate and up to date
- Consider applying with a different provider, as criteria vary between companies
- Address any outstanding financial issues like unpaid CCJs or existing debts
Try a different provider
Each merchant cash advance provider has its own assessment criteria and risk appetite. A decline from one does not mean you will be declined by all. Some providers specialise in newer businesses, certain sectors, or lower transaction volumes.
When approaching a different provider, be upfront about the previous decline. This shows transparency and helps the new provider understand your situation.
Building your card revenue
If your decline was due to low card transaction volume, focus on increasing your card revenue over the next few months.
- Encourage more customers to pay by card rather than cash
- Consider offering contactless payments if you do not already
- Promote higher-value products or services that increase average transaction size
- Extend your trading hours or operating days to capture more sales
- Invest in marketing to drive more footfall or online traffic
Alternative funding options
If a merchant cash advance is not available to you right now, other funding options may be worth exploring.
- Revenue-based finance, which uses broader income data beyond card transactions
- Invoice finance, if you invoice other businesses and have outstanding receivables
- Business credit cards for smaller, short-term funding needs
- Government-backed startup loans if you are a newer business
- Peer-to-peer lending platforms
Frequently asked questions
Will a declined MCA application affect my credit score?
In most cases, no. Most merchant cash advance providers use soft credit checks during the initial assessment, which do not appear on your credit file.
How long should I wait before reapplying?
It depends on the reason for the decline. If it was due to low transaction volume or short trading history, waiting two to three months to build up more data is usually sufficient.
Should I apply to multiple providers at the same time?
It is fine to explore offers from different providers, but be mindful that some may run hard credit checks. Ask each provider what type of check they perform before proceeding.
Can I appeal a declined application?
Most providers do not have a formal appeals process, but you can ask for feedback and reapply once the issues have been addressed.