Merchant cash advance repaid from card takings

A merchant cash advance gives a business a lump sum that is repaid as a percentage of its card takings, which suits high-transaction businesses that take card payments. This page explains how repayments work, who the product may suit and the steps involved in arranging a facility.

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What a merchant cash advance is

A merchant cash advance gives a business a lump sum repaid as a percentage of its card takings. It is a product for high-transaction businesses that take card payments.

The starting point is the business requirement. We put the opportunity to the right providers simultaneously and present the options clearly and without bias. A merchant cash advance sits within Business Lending, alongside other products that meet different requirements.

Who it suits

Business receipts: businesses receiving a significant share of revenue through card payments, such as restaurants, retailers, gyms and salons.

Trading pattern: seasonal or variable income may make repayment from card takings relevant. A provider would need to review the business’s card receipts; this is not an assurance of an advance.

These are factors to discuss, not a guarantee of eligibility. All finance is subject to status and provider criteria.

How repayments work

Repayment is made as a percentage of card takings. Indicative factor and split rates are shown below for illustration and subject to status. Guarantees and indemnities may be required.

We structure the requirement before approaching providers, then bring back clear options for you to review. The choice remains with your business. If you are not sure which Business Lending product fits, start with a conversation about what you need rather than an assumed product.

Why an independent broker, not your bank

Independent

We have no balance sheet to protect and no product to push. We work independently, matching the requirement to the right lender rather than starting with a product to sell. The conversation starts with what your business needs, not with an existing lending product.

An independent approach means the finance requirement comes first. Trade finance, business lending and capital & liquidity are different funding disciplines, and we tell you which fits before approaching a lender. We present the options clearly and without bias, so the choice remains with your business.

Fast

We take your opportunity to the right lenders simultaneously, creating genuine competition and compressing timelines. This describes how we approach the market, not a promise about an approval or drawdown date. The facility is structured before the opportunity is put to the right lenders.

The purpose of approaching lenders simultaneously is to bring back options that can be reviewed together. We negotiate on your behalf and present those options clearly. Rather than negotiating blind, you can review the offers in the context of the requirement we have already discussed and structured.

Precise

We design the deal before we approach a lender: size, tenor, security and covenants. The structure comes first, so the opportunity we take to market reflects what your business needs. We then match the requirement to the right lender without unnecessary structure or cost.

The starting point is a conversation about your business and what you want to achieve. The product name is only part of that conversation. We identify the right structure and prepare the opportunity properly before going to market, then explain the options clearly before you choose.

How it works

Tell us what you need
Tell us about your business and what you are looking to achieve. The starting point is the requirement rather than a finance product. We take the time to understand your business properly and tell you which funding discipline fits before approaching a lender.
This conversation gives us the context for structuring the facility. We work across trade finance, business lending and capital & liquidity, so the discussion can start with the business need rather than assuming that a particular product is the answer.
We structure your facility
We identify the right structure and prepare your opportunity before approaching lenders. The deal is designed first: size, tenor, security and covenants. We match the requirement to the right lender without unnecessary structure or cost, keeping the business need at the centre of the process.
Once the opportunity has been prepared, we approach the right lenders simultaneously. That creates genuine competition and compresses timelines. We negotiate on your behalf, with the structure of the facility established before the opportunity is taken to market.
Review your offers
We bring back competitive options from lenders, presented clearly and without bias. You choose. The offers are reviewed against the requirement and the structure of the facility, rather than treating every offer as the same product. We tell you which fits before approaching a lender.
Our role is to present the options clearly so you do not negotiate blind. We are an independent broker, not a lender. The choice remains with your business, and the facility remains subject to status and the requirements of the finance provider.
We close it
We manage the process through to drawdown, coordinating lenders, lawyers and paperwork. This is the final step in the same process that began with understanding the business need. Our role continues through the placement of the facility, rather than ending when offers are presented.
Tell us what you need, let us structure the facility, review the offers and choose the option that fits. We then manage the steps through to drawdown. All finance remains subject to status; guarantees and indemnities may be required.

Download product sheet (PDF)

Frequently asked questions

What is a merchant cash advance?

A lump sum repaid as a percentage of your card takings.

Who is a merchant cash advance for?

High-transaction businesses that take card payments.

How are repayments made?

As a percentage of card takings.

Is Oku Financial a lender?

No. Oku Financial is a commercial finance broker. We work with a panel of lenders to find funding for UK businesses.

How much can a merchant cash advance provide?

A merchant cash advance is typically 1–2× average monthly card turnover. All figures are indicative and subject to status.

What costs may apply to a merchant cash advance?

The factor rate is 1.07–1.35× (borrow £10k, repay £10,700–£13,500). The split rate is 7–35% of daily card receipts, and some lenders charge an arrangement fee of 2–5%. All figures are indicative and subject to status.

Related finance pages

Want to discuss your requirements?

Tell us about your business and what you are looking to achieve.

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