Do you make MCA repayments on weekends and bank holidays?
By Helm, Funding Specialist
- Repayments are only taken when you process card transactions
- No card sales on a given day means no repayment that day
- Weekends and bank holidays follow the same rule
- Businesses that close certain days automatically skip repayments
- The model naturally adjusts to your trading calendar
One of the most common questions about merchant cash advances is how repayments work on days when your business is not trading. If you close on Sundays, take bank holidays off, or simply have quiet days with no card sales, you want to know whether you still owe money.
The answer is simple: no card sales means no repayment.
How daily repayments work
A merchant cash advance is repaid through a fixed percentage of your daily card transactions. This percentage is agreed when you take out the advance and typically ranges from 10 to 20 percent.
Each day, the agreed percentage is calculated on your actual card sales for that day. If you processed £1,000 in card payments and your repayment percentage is 15 percent, £150 would be deducted. If you processed nothing, nothing is deducted.
What happens on weekends?
If your business trades on weekends and processes card payments, repayments will be taken as normal. If your business is closed on weekends and processes no card transactions, no repayment is taken.
For businesses that are open seven days a week, such as restaurants or retail shops, repayments happen every day. For businesses that close on Sundays, no repayment is taken on Sundays.
What about bank holidays?
Bank holidays follow exactly the same rule. If you trade and process card payments on a bank holiday, a repayment will be taken. If you close for the bank holiday, no repayment is deducted.
This is one of the key advantages of an MCA over fixed-payment products. You are never required to make a payment on a day when you are not generating revenue.
Examples by business type
Here is how weekend and bank holiday repayments work for different types of businesses.
| Business Type | Typical Trading Days | Weekend Repayments |
|---|---|---|
| Restaurant | 7 days a week | Yes, on all trading days |
| Office-based service | Monday to Friday | No weekend repayments |
| Retail shop | Monday to Saturday | Saturday yes, Sunday no |
| Cafe | 6 or 7 days | Depends on opening days |
| Seasonal attraction | Varies by season | Only on trading days |
What about card payment processing delays?
Card payments are sometimes settled by your payment processor with a one or two day delay. This means that Saturday's card sales might not be settled until Monday or Tuesday. The repayment percentage is typically applied when the funds are settled, not when the transaction takes place.
This is a technical detail that your MCA provider will explain during the application process. The important point is that you only ever repay a percentage of money that has actually come into your account.
Holiday closures and extended breaks
If you close your business for a holiday, such as a week over Christmas or a two-week summer break, no repayments will be taken during that period. The MCA simply pauses when there are no card transactions to take a percentage from.
You do not need to notify your provider about planned closures, though it is good practice to let them know about extended breaks.
Frequently asked questions
Will I be charged a fee for days with no repayment?
No. There are no fees or penalties for days when no repayment is taken. You simply pay nothing on days when you process no card transactions.
Does closing on weekends extend my repayment period?
Yes, technically. If you trade fewer days per week, it will take longer to repay the advance in full. However, the total amount you repay does not change.
Can I choose which days repayments are taken?
You cannot choose specific days, but repayments are only taken on days when you process card sales. If you do not trade on certain days, no repayment is taken automatically.
What if I switch to cash-only on certain days?
If you process no card transactions on a given day, no MCA repayment is taken, even if you generate cash revenue. However, deliberately avoiding card payments to reduce repayments could breach your agreement terms.