With a merchant cash advance explained simply, the big idea is this: your repayments move with your sales. Instead of paying the same amount every week whether you’ve had a record Saturday or a washed-out Tuesday, you repay a set share of what your card terminal takes. For businesses whose takings swing with the weather, the season or the footy fixture, that rhythm can feel much more natural than a fixed repayment.
It also fits how Australians pay now. The Reserve Bank’s 2025 Consumer Payments Survey found cash had settled at around 15 per cent of consumer payments, with cards making up the clear majority. For a cafe, a boutique or a bar, the card terminal is effectively the till — and a merchant cash advance is built around it.
What is a merchant cash advance?
A merchant cash advance (MCA) is a lump sum of business capital repaid as an agreed share of your future card and EFTPOS sales. You receive the funds up front. Then, each day or each week, a portion of your card takings goes towards repayment until the agreed total has been repaid.
How does the share of card sales work?
The share of card sales (sometimes called the holdback) is a fixed percentage of your card takings that’s put towards repaying the advance. The percentage stays the same; the dollar amount changes with your sales.
Example scenario — illustrative only. A Fremantle cafe takes an advance to fit out an outdoor seating area. The agreed share of card sales is 10 per cent (a number chosen here purely to show the mechanics).
Day Card takings 10% share towards the advance Monday (rainy) $1,200 $120 Wednesday $2,400 $240 Friday $3,800 $380 Saturday (market day) $5,500 $550 Sunday $4,100 $410 On the quiet Monday, the cafe puts $120 towards the advance. On the busy Saturday, $550. The advance is repaid faster in strong trading and more slowly in quiet stretches, and the owner never faces a fixed repayment that ignores a bad day.
The share and the total amount to be repaid are agreed before you sign. Because repayments track sales, the time it takes to repay isn’t fixed — it depends on how your business trades.
How is a merchant cash advance sized?
A merchant cash advance is sized mainly from your card turnover. The lender looks at your card and EFTPOS takings over recent months, usually from your merchant statements and business bank statements, and considers:
- Average monthly card sales — the main driver of how much can be advanced
- Consistency — steady takings support a larger advance than erratic ones
- Seasonality — a ski-field shop and a beach kiosk have very different years
- Existing commitments — other advances or loans already repaid from your takings
- How long you’ve been trading — generally at least 6 months
FastBiz Loans offers merchant cash advances from $5,000 to $300,000.
What are the pros and cons of a merchant cash advance?
| Pros | Cons |
|---|---|
| Repayments flex with takings, easing pressure on quiet days | The total repayable is agreed up front, so early repayment may not save money |
| Assessed largely on card sales, which can help if other parts of your file are weaker | Only suits businesses with meaningful card turnover |
| Can be fast — same-day funding possible once approved and signed | Taking several advances at once can squeeze daily cash flow |
| No property security needed | Less suited to large, long-lived purchases |
| Repayment happens automatically, with little admin | Less predictable timing makes it harder to plan exactly when it’ll be repaid |
Who does a merchant cash advance suit?
A merchant cash advance usually suits businesses that:
- Take most of their sales by card or EFTPOS
- Have steady but seasonal or weather-driven trading
- Want to fund something that lifts sales, like a refit, new menu, extra stock or a marketing push
- Prefer repayments that ease off when trade is quiet
Typical examples: cafes and restaurants, bars, bakeries, boutiques, hair and beauty salons, gyms and tourism operators. See our hospitality and retail industry pages for how these businesses use it.
How does a merchant cash advance compare with a small business loan?
Both deliver a lump sum. The difference is in how you pay it back and what the lender leans on when deciding.
| Merchant cash advance | Small business loan | |
|---|---|---|
| Repayments | A set share of card sales, so the amount moves with takings | Regular scheduled repayments |
| Assessed mainly on | Card and EFTPOS turnover | Total revenue and cash flow across all income |
| Best when | Sales are mostly card-based and swing day to day | Income arrives in many forms or is fairly steady |
| Planning | Harder to predict the exact finish date | Easier to budget for a fixed rhythm |
| Range | $5k–$300k | $5k–$500k |
If your takings are mostly by card and your quiet days are genuinely quiet, the flexing repayments of an advance can be easier to live with. If you’d rather know exactly what’s leaving your account each week, a small business loan gives you that certainty. Many owners find the best choice becomes clear once they look at a month of their own takings side by side with each structure.
When is a merchant cash advance the wrong choice?
Be honest with yourself about these situations:
- Most of your income is invoiced, not tapped. A B2B business paid on 30-day terms is usually better served by invoice finance.
- You’re buying long-lived equipment. Equipment finance, with repayments often matched to the working life of the equipment, generally fits better.
- Your margins are already razor thin. A share of sales comes off the top, so make sure your margin can absorb it.
- You already have an advance running. Stacking advances is one of the most common ways cash flow gets tight.
- You need an ongoing buffer. A business line of credit lets you draw and repay repeatedly.
How do I apply for a merchant cash advance?
The process is short. Have these ready:
- Photo ID for each director or owner
- Your active ABN or ACN
- 3–6 months of business bank statements
- Recent card terminal or merchant statements
Then start with the 60-second enquiry, talk the options through with a lending specialist, and agree the amount and the share of sales. Decisions can come in as little as 4 hours, and same-day funding is possible once approved and signed.
Put your card takings to work
If your business runs on the tap of a card, a merchant cash advance can turn those future takings into capital you can use today. Learn more on our merchant cash advance page, or start your enquiry at apply now — it doesn’t affect your credit score. Planning around a busy season? Our seasonal cash flow planning guide shows how to time it.
Your path to funds
Step 1
60-second online enquiry
Step 2
Share bank and card terminal statements
Step 3
Agree the advance amount and the share of sales
Step 4
Receive the lump sum — same-day funding possible
Step 5
Repay automatically as a share of card takings
Questions we get asked
Is a merchant cash advance a loan?
It's a form of business finance, but it's structured differently from a standard loan. Instead of fixed repayments, you repay through an agreed share of your future card sales until the agreed total is paid. The details are set out in your agreement.
What happens on a day with no card sales?
If there are no card sales, there's generally nothing taken from takings that day, because repayments are a share of those sales. Check your agreement for any minimum or catch-up arrangements before you sign.
Do I need to change my EFTPOS terminal?
Not always. Depending on the provider, repayments may be collected through your existing terminal arrangement or by regular debits calculated from your card sales. Your lending specialist will explain which applies.
Can I get a merchant cash advance with bad credit?
Credit history is considered case by case. Because an advance is closely tied to your card takings, strong and consistent card sales can carry real weight in the assessment. There's no promise of approval, though.
Can I pay off a merchant cash advance early?
It depends on the agreement. Some structures set a fixed total repayable regardless of timing, so paying early may not reduce the cost. Ask how early repayment works before you commit.
How is the total cost of a merchant cash advance worked out?
The total amount to be repaid is agreed at the start and set out in your contract. Like every FastBiz Loans product, it's priced on your business's individual situation, and we look for the sharpest option available.