Merchant cash advance for pubs and bars
By Helm, Funding Specialist
- Pubs and bars are strong MCA candidates due to high card volumes
- Repayments adjust with your daily card takings
- Funds can be used for refurbishments, stock, events, or staffing
- No personal guarantee or fixed monthly repayments
- Most applications are approved within 24 to 48 hours
Running a pub or bar is a cash-intensive business. From cellar stock and staffing costs to refurbishments and event nights, there is always a demand for capital. Bank loans can take weeks and require extensive paperwork, which does not suit the fast-paced nature of hospitality.
A merchant cash advance provides a faster, more flexible option. You receive a lump sum and repay it through a percentage of your daily card transactions. For pubs and bars where the majority of sales are paid by card, this model is a natural fit.
Why pubs and bars are ideal for an MCA
The shift to card and contactless payments has been dramatic in the pub and bar industry. Most venues now process the vast majority of their transactions by card.
- Contactless payments dominate bar transactions
- Tab payments and table service are almost always by card
- Food service adds significant card revenue
- Event nights and private hire bring high-value card transactions
Common uses for pub and bar funding
Pub and bar owners use merchant cash advances for a wide range of investments. There are no restrictions on what you spend the money on.
- Refurbishing the bar area, seating, or outdoor space
- Purchasing stock ahead of busy periods or events
- Installing or upgrading kitchen equipment
- Running marketing campaigns or hosting launch events
- Hiring and training additional staff
- Installing new EPOS systems or payment terminals
Repayment flexibility for pubs
Pubs and bars experience significant daily and weekly variation in revenue. Weekends are typically much busier than weekdays, and bank holidays and events create spikes. An MCA handles this naturally.
On a busy Saturday night, your repayment will be higher because your card takings are higher. On a quiet Tuesday, the repayment will be lower. You never face a fixed payment that does not reflect your actual trading.
MCA vs brewery loan comparison
Many pubs operate under a tied or partially tied agreement with a brewery, which may offer loans for refurbishments. Here is how a brewery loan compares to an MCA.
| Feature | Merchant Cash Advance | Brewery Loan |
|---|---|---|
| Speed of funding | 24 to 48 hours | Weeks to months |
| Repayment | % of daily card sales | Fixed monthly or tied to beer purchases |
| Use of funds | Unrestricted | Often restricted to approved work |
| Independence | No tie-in obligations | May extend or create a tie |
| Personal guarantee | Not required | May be required |
Eligibility for pubs and bars
To qualify for a merchant cash advance as a pub or bar, you typically need:
- 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
- No minimum credit score requirement
Frequently asked questions
Can a pub with a brewery tie get an MCA?
Yes. A merchant cash advance is independent of any brewery agreement. Your tie arrangement does not affect your eligibility for an MCA.
Do cash payments affect my MCA eligibility?
Your MCA amount is based on your card revenue only. If a significant portion of your sales are in cash, the advance amount may be lower, but you can still apply.
Can I use an MCA for a garden or terrace renovation?
Yes. There are no restrictions on how you use the funds. Outdoor space improvements are one of the most common uses for pub MCA funding.
How quickly can I get funding?
Most MCA applications for pubs are processed within 24 to 48 hours, with funds in your account within one to two business days.