Merchant cash advance for hotels and accommodation businesses
By Helm, Funding Specialist
- Hotels with strong card revenue are ideal candidates for an MCA
- Repayments flex with occupancy rates and seasonal demand
- Funds can cover refurbishments, staffing, or marketing
- No personal guarantee or fixed monthly repayments
- Approval and funding typically within 48 hours
Hotels and accommodation businesses need constant investment to stay competitive. Whether it is refreshing guest rooms, upgrading facilities, or running marketing campaigns, the costs add up quickly. Traditional bank loans can take weeks to arrange and require fixed monthly repayments that do not suit a seasonal industry.
A merchant cash advance offers a faster, more flexible alternative. You receive a lump sum upfront and repay it through a percentage of your daily card transactions, so repayments naturally align with your occupancy and revenue.
Why hotels and B&Bs suit a merchant cash advance
Accommodation businesses process a significant proportion of their income through card payments. From room bookings to bar and restaurant spend, the majority of transactions are card-based.
- Room bookings are almost always paid by card, whether online or at reception
- On-site restaurants, bars, and spas generate additional card revenue
- Conference and event facilities bring high-value card transactions
- Seasonal peaks create periods of high card volume
Popular uses for hotel MCA funding
There are no restrictions on how you use the funds from a merchant cash advance. Common uses for hotels and accommodation businesses include:
- Room refurbishments and interior upgrades
- Kitchen and restaurant renovations
- Marketing campaigns on travel platforms and social media
- Hiring seasonal staff for peak periods
- Upgrading booking systems or property management software
- Energy efficiency improvements and sustainability upgrades
Seasonal flexibility
The accommodation industry is inherently seasonal. Coastal hotels may peak in summer while city hotels see more business travel in autumn and spring. An MCA handles these fluctuations naturally.
During busy periods with high occupancy, your repayments increase because your card revenue is higher. During quieter months, repayments reduce proportionally. You never face a fixed payment that your cash flow cannot support.
Comparison with hospitality loans
Here is how a merchant cash advance compares to a traditional hospitality or business loan.
| Feature | Merchant Cash Advance | Hospitality Loan |
|---|---|---|
| Funding speed | 24 to 48 hours | 2 to 6 weeks |
| Repayment method | % of daily card sales | Fixed monthly instalments |
| Collateral required | None | Often property or assets |
| Personal guarantee | Not required | Usually required |
| Seasonal adjustment | Automatic | None |
Eligibility for accommodation businesses
To apply for a merchant cash advance for your hotel or accommodation business, you typically need:
- At least three months of trading history
- A minimum of £10,000 per month in card transactions
- A UK-registered business with an active card terminal
- No minimum credit score requirement
Frequently asked questions
Can a B&B or guest house get an MCA?
Yes, as long as you process card payments through a card terminal or online payment gateway. The key requirement is consistent card transaction history.
Do online booking payments count towards card revenue?
Yes. Payments processed through platforms like Booking.com or your own website payment gateway count as card transactions for MCA purposes.
Can I get an MCA during the off-season?
Yes. Providers look at your overall card history, not just your current month. If your annual card revenue supports the advance, you can apply at any time of year.
How much can a hotel borrow?
Most providers offer between one and one-and-a-half times your monthly card turnover. A hotel processing £50,000 per month could access between £50,000 and £75,000.