MCA Calculator

Unlock Your Business Potential with Our Merchant Cash Advance Calculator

Are you a UK-based business owner seeking quick and flexible financing options? Our UK Merchant Cash Advance Calculator is designed to help you understand the costs associated with merchant cash advances. With this user-friendly tool, you can easily estimate your total repayment amount, monthly payments, and how your split rate affects your finances.

UK Merchant Cash Advance Calculator

Loan Amount (£): Factor Rate: Loan Term (Months): Split Rate (% of daily sales):

How to Use the UK Merchant Cash Advance Calculator

Using our calculator is straightforward and intuitive. Follow these simple steps to get your estimates:

Enter Loan Amount: Input the total amount of the loan you wish to borrow. This is the cash advance you are considering for your business.
Input Factor Rate: Enter the factor rate offered by the lender. The factor rate typically ranges from 1.2 to 1.5 in the UK. This will determine the total repayment amount.
Specify Loan Term: Indicate the duration of the loan in months. The loan term will impact your monthly payments.
Add Split Rate: Provide the percentage of your daily sales that will be used for repayment. This split rate can significantly influence your cash flow, so it’s essential to estimate it accurately.
Calculate: Click the “Calculate” button to view your results.

Results Explained

Once you click “Calculate,” a popup will display your results, including:

Total Repayment: This is the total amount you will pay back over the life of the loan, including the factor rate.
Estimated Monthly Payment: This figure represents the average monthly payment you can expect based on the loan amount, term, and factor rate.
Estimated Monthly Payment Based on Split Rate: This shows how much you would pay monthly if repayments are based on your split rate, providing insight into your cash flow obligations.

Apply for Your Cash Advance

Ready to take the next step in funding your business? After viewing your results, you can click the “Apply for Cash Advance“ button in the popup to be directed to our application form. Our quick and easy application process is designed to help you secure the financing you need to grow your business.

Example Calculation

If your annual income is £40,000, with a personal allowance of £12,570:

Taxable Income: £40,000 – £12,570 = £27,430
Tax Due: 20% of £27,430 = £5,486

FAQs about Merchant Cash Advances

What is a merchant cash advance?

A merchant cash advance is a financing option where a lender provides a lump sum payment to a business in exchange for a percentage of future credit card sales. It’s ideal for businesses with fluctuating sales or those needing quick access to capital.

How is the repayment calculated?

Repayment is calculated using a factor rate and a split rate, which are determined by the lender. The factor rate is multiplied by the loan amount to get the total repayment, while the split rate determines how much you pay daily or monthly based on your sales.

Are there any fees associated with merchant cash advances?

Yes, there may be additional fees, such as processing fees or closing costs. It’s essential to read the terms carefully to understand the total cost of borrowing.

How quickly can I receive funds?

Many lenders can provide funds within a few business days after your application is approved, making merchant cash advances a fast option for businesses in need of immediate capital.