Merchant loan eligibility: do you qualify?
By Helm, Funding Specialist
- The main requirement is consistent card transaction revenue
- Most providers require at least £10,000 per month in card sales
- You need a minimum of three months trading history
- Credit score is not the primary factor in approval
- Both limited companies and sole traders can apply
Merchant loan eligibility is based on your card transaction revenue, not traditional credit scores or business plans. This makes it accessible to a wide range of businesses that might struggle to qualify for bank finance.
This guide breaks down exactly what you need to qualify and what to do if you fall short on any of the requirements.
Core eligibility requirements
While requirements vary between providers, most UK merchant loan providers look for the following:
- A UK-registered business (limited company, sole trader, partnership, or LLP)
- At least three months of trading with card payment processing
- A minimum of £10,000 per month in card transactions
- An active card terminal, mobile reader, or online payment gateway
- A UK business bank account (personal accounts accepted for sole traders)
Do you need a good credit score?
No. Unlike traditional bank loans, merchant loan providers focus on your card revenue rather than your personal or business credit score. Many businesses with CCJs, defaults, or poor credit history are approved.
Some providers may run a soft credit check for identity verification, but this does not leave a mark on your credit file or affect your score.
Minimum card transaction thresholds
The minimum monthly card transaction requirement varies by provider. Here is a general guide.
| Monthly Card Revenue | Likely Eligibility | Typical Advance Range |
|---|---|---|
| Under £10,000 | May not qualify with most providers | N/A |
| £10,000 to £15,000 | Some providers may accept | £10,000 to £15,000 |
| £10,000 to £10,000 | Most providers will accept | £10,000 to £15,000 |
| £10,000 to £30,000 | Strong candidate | £10,000 to £45,000 |
| Over £30,000 | Very strong candidate | £30,000 to £100,000+ |
Business structures that qualify
Merchant loans are available to all standard UK business structures.
- Limited companies (Ltd)
- Sole traders
- Partnerships
- Limited Liability Partnerships (LLPs)
- Community Interest Companies (CICs)
- Some charities and nonprofits with commercial trading
What if you do not meet the requirements?
If you do not currently meet the standard eligibility criteria, there are steps you can take.
- Build up your card transaction history over the next few months
- Encourage more customers to pay by card to increase your card revenue
- Switch from a cash-heavy model to card and contactless payments
- Try providers with lower minimum thresholds
- Consider other funding options like revenue-based finance or small business grants
Industries with the highest approval rates
Some industries have naturally higher card transaction volumes, which leads to stronger eligibility.
- Restaurants and hospitality businesses
- Retail shops with high footfall
- Hair and beauty salons
- Dental and medical practices
- Hotels and accommodation providers
- Cafes and coffee shops
Frequently asked questions
Can I apply if I have a CCJ?
Yes. Many merchant loan providers approve businesses with CCJs. Your card revenue is the primary factor, not your credit history.
Do I need to provide a personal guarantee?
Most merchant loan providers do not require a personal guarantee. However, this varies by provider, so check before applying.
Can a startup get a merchant loan?
You typically need at least three months of card processing history. Very new businesses without this track record may need to explore other options.
Does it matter which card terminal I use?
Most providers work with all major UK card processors. However, check with your provider to confirm compatibility before applying.