Merchant cash advance requirements: what you need to apply
By Helm Editorial Team, Business Funding Specialists
- You need to accept card payments and process at least £10,000 per month
- Your business must have been trading for at least 6 months
- No business plan, no financial projections, and no detailed paperwork required
- Credit scores are not a primary factor. Only a soft check is performed
- You do not need to offer security, assets, or personal guarantees
- The application can be completed in about 60 seconds
The requirements for a merchant cash advance are far simpler than most business owners expect. If you have been put off by the complexity of applying for bank finance, you will find this process refreshingly straightforward.
This guide covers every requirement in detail so you can determine whether you qualify before you even start the application.
Core eligibility requirements
To qualify for a merchant cash advance in the UK, you typically need to meet four simple criteria.
- Your business accepts card payments through a card terminal or online payment gateway
- You have been trading for at least 6 months
- Your business processes a minimum of £10,000 per month in card sales
- Your business is registered and based in the United Kingdom
Card payment requirement
Because a merchant cash advance is repaid through a percentage of your daily card sales, accepting card payments is the fundamental requirement. This can be through a physical card terminal in your shop, restaurant, or premises, or through an online payment gateway for e-commerce businesses.
The type of card terminal or payment provider you use does not typically matter. Whether you use SumUp, Square, Zettle, Worldpay, Barclaycard, or any other processor, you can usually apply for a merchant cash advance.
If your business operates primarily with cash transactions, a merchant cash advance is unlikely to be suitable. However, if you take a mix of cash and card, your card sales volume is what counts for eligibility purposes.
Minimum trading history
Most merchant cash advance providers require your business to have been trading for at least 6 months. This trading history gives the provider confidence that your card sales pattern is established and consistent.
Some providers may consider businesses with shorter trading histories if the card sales volume is strong, but 6 months is the standard minimum across the industry.
If your business is brand new, a government-backed start-up loan may be a more appropriate option until you have built up enough trading history to qualify for a merchant cash advance.
Monthly card sales minimum
The minimum card sales threshold is typically £10,000 per month. This ensures that there is sufficient card transaction volume to support repayments without putting excessive pressure on your cash flow.
The higher your monthly card sales, the more funding you can access. Most providers offer up to 125% of your monthly card turnover. Here is how that translates at different sales levels.
| Monthly Card Sales | Potential Funding (up to 125%) |
|---|---|
| £10,000 | Up to £12,500 |
| £20,000 | Up to £25,000 |
| £50,000 | Up to £62,500 |
| £100,000 | Up to £125,000 |
| £200,000 | Up to £250,000 |
| £400,000 | Up to £500,000 |
What you do not need
One of the biggest advantages of a merchant cash advance is what you do not need to provide. Compared to traditional bank lending, the list of things that are not required is significant.
- No business plan or financial projections
- No audited accounts or tax returns
- No security, collateral, or pledged assets
- No personal guarantee
- No perfect credit score
- No proof of profitability
- No meetings with bank managers or committees
Credit score requirements
Merchant cash advance providers do not rely on credit scores the way banks do. Your card sales volume and consistency are far more important than your personal or business credit history.
Only a soft credit check is performed when you apply. This means there is no mark on your credit file and no impact on your credit score. You can check your eligibility without any risk.
Many business owners who have been declined by banks go on to successfully access merchant cash advances. A poor credit score does not automatically disqualify you from this type of funding.
Documentation that may be requested
For the initial application, no documents are required. You simply complete an online form with basic information about your business.
In some cases, the provider may ask for recent card processing statements to verify your sales volume. This is a straightforward step and your card terminal provider can usually supply these quickly.
That is typically the extent of any documentation involved. There are no lengthy forms, no supporting letters, and no detailed business cases to prepare.
Frequently asked questions
What is the minimum card sales needed for a merchant cash advance?
Most providers require a minimum of £10,000 per month in card sales. The higher your monthly card turnover, the more funding you can access.
Do I need a business plan to apply?
No. Merchant cash advance applications do not require a business plan, financial projections, or any formal documentation. The application is based on your card sales history.
Can I apply if I have been trading for less than 6 months?
Most providers require at least 6 months of trading history. If your business is newer than this, a government start-up loan may be more suitable.
Do I need to offer a personal guarantee?
No. Merchant cash advances do not typically require personal guarantees or any form of security. The advance is based on your future card sales.
Will the application affect my credit score?
No. Only a soft credit check is performed, which does not appear on your credit file and has no impact on your credit score.
Which card terminal providers are accepted?
Most card terminal providers are accepted, including SumUp, Square, Zettle, Worldpay, Barclaycard, and others. The specific terminal you use does not typically affect your eligibility.