Twelve questions to ask before signing a merchant cash advance
Every question on this list has one purpose: get the answer in writing before you sign, because afterwards the agreement is the answer. A funder or introducer comfortable answering all twelve is exactly the kind you want; hesitation on any of them tells you something too.
MCAs to limited companies are commercial agreements, generally outside FCA regulation, so the contract does the work consumer rules would otherwise do. The questions are grouped by what they protect.
The cost questions
- 1. What is the total repayment as one fixed number — advance, factor rate cost, and every fee included?
- 2. Are there any fees outside that number? Set-up, admin, direct debit, early settlement or completion fees all belong inside the total.
- 3. If I repay faster than expected, does the cost reduce? (For most MCAs the answer is no — the cost is fixed. You want that confirmed rather than assumed.)
- 4. What happens at renewal — does a top-up replace this agreement or sit alongside it, and what does the remaining balance look like at that point?
The repayment questions
- 5. What exact percentage of card takings is deducted, and is it daily or weekly?
- 6. What happens in a genuinely bad month — is there a minimum payment, and what counts as default?
- 7. Can the holdback percentage be reviewed if trading changes materially?
- 8. Am I required to keep using a particular card processor, and what happens if I switch?
The security and consent questions
- 9. Is a personal guarantee required, is it capped, and does it cover only this agreement?
- 10. Does the agreement restrict other borrowing against my card takings without your consent? (This is the clause that makes stacking a breach.)
- 11. Is anything registered at Companies House (a debenture or charge) as part of this agreement?
- 12. Who exactly am I contracting with, and who is the introducer being paid by? Both answers should survive a check on Companies House and, where relevant, the FCA register.
A thirteenth question: who am I actually contracting with?
The name on the marketing is often not the name on the agreement, and this market moves. One well-known small-business lender that failed in 2022 is still being listed on comparison pages today: its administration has been extended by court order to 11 December 2026, unsecured creditors received 4.96 pence in the pound as a second and final dividend declared on 9 January 2026, and its domain is now for sale. Anyone quoting a lender to you should be able to give you a live company number for it.
Ownership changes matter as well, because they change appetite. Playter has been a Shawbrook Bank brand since December 2025 and is now the origination route for new Shawbrook unsecured business lending. Time Finance is subject to a recommended cash acquisition announced on 17 August 2026 and has told the market it will stop offering new soft asset finance shortly after completion, expected in the fourth quarter of 2026. Kriya has carried three trading names on one company number since 2010, and its site now carries an Allica Bank acquisition banner.
None of that makes any of them a bad counterparty. It does mean the sensible questions are: which legal entity is on the agreement, what is its company number, and is the trading name I was sold the same as the name I am signing with. Two minutes on the FCA register and Companies House answers all three.
What the alternative on the same enquiry looks like
Before signing an advance, it is worth knowing what else the same figures reach. At £25,000 unsecured, 36 lenders on our panel have a product covering the amount, over terms of 1 to 72 months, with published rate floors from 4.1% and a median floor of 19.2% a year (checked September 2026). At £50,000 the count rises to 47 with a median floor of 17%, and at £100,000 to 45 at 15.3%.
Advances sit inside that same unsecured panel of 55 lenders (checked September 2026), so asking for the term-loan comparison costs you one enquiry rather than two. Where the card takings are strong and the need is genuinely short, an advance can still win on flexibility. Where they are not, the comparison usually answers itself in pounds.
What the answers should look like
Written, specific, and boring. The total repayment is a single number. The holdback is a single percentage. The personal guarantee position is yes-or-no with a cap or without one. Answers that arrive as ranges, verbal assurances, or "that never really happens" are the ones to press on — and same-day signing pressure is a reason to slow down, not speed up. Our pages on factor rates and stacking cover the two questions that catch people most often.
The panel behind this page
Through our broker network we place cases with a panel of 200+ UK lenders offering 1,800+ products, from high-street banks to specialist funds. Advances and the term loans they compete with both sit on our unsecured panel of 55 lenders (checked September 2026; panel composition changes over time). We check criteria first and approach only the lenders whose requirements you fit. The full roster, category by category, is published in our lender directory.
Frequently asked questions
What is the most important question to ask before taking an MCA?
The total repayment as one fixed number, with every fee inside it. Every other cost question is a variation on that one, and a funder or introducer who cannot or will not put that number in writing before signature is telling you something important.
Should I ask an MCA provider about a personal guarantee?
Yes, always: whether one is required, whether it is capped at a fixed amount, and whether it covers only this agreement or anything the company ever owes that funder. The answers materially change what you are signing, and they vary between providers.
How do I check who is behind an MCA offer?
Look the company up on Companies House for trading history and filed accounts, and check the FCA register to understand what any claimed status covers. Ask the introducer, if there is one, how they are paid and by whom, in writing. Reputable firms answer these questions readily.
Is CapExpand FCA regulated?
CapExpand Ltd is not directly authorised by the Financial Conduct Authority. CapExpand Ltd (FRN 1060885) is an Appointed Representative of White Rose Finance Group Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630772). That appointment means White Rose Finance Group Limited is responsible for our credit broking, and both firms appear on the Financial Services Register at register.fca.org.uk. We are a credit broker, not a lender.
Sources
Corporate facts were read from filings and the companies’ own announcements on 7 September 2026. Panel counts cover available products only.
Got an offer in front of you?
Send it over. We will put the twelve answers side by side with any alternative worth comparing.
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CapExpand Ltd · Company No. 14433858 · ICO ZB789649 · Annesley, Nottingham