Can I restructure or consolidate merchant cash advances (MCAs)?
Short answer
Yes — it is often possible to restructure or consolidate merchant cash advances (MCAs), but options are limited and come with trade-offs. Specialist lenders, brokers and refinancing products can sometimes replace MCAs with longer-term finance or a single consolidated facility. Best Business Loans can help you explore suitable refinancing and consolidation routes using our lender and broker network.
What is an MCA and why businesses seek to restructure
A merchant cash advance is a purchase of future card receipts in exchange for an upfront sum, repaid by a fixed percentage of daily card takings or via a daily/weekly debit. MCAs are common for retail, hospitality and other card-heavy businesses because they provide fast access to cash with minimal paperwork. Many firms consider restructuring when daily repayments are straining cash flow, when effective borrowing costs are high, or when multiple MCA deals create administrative complexity.
Restructuring seeks to reduce repayment pressure, lower the effective cost, or combine several agreements into a single, easier-to-manage arrangement. The main drivers are improving cash flow predictability, lowering effective rates, and reducing the operational burden of multiple remittances. That said, restructuring is not always the cheapest or simplest route and must be compared to other options.
Practical options for restructuring or consolidating MCAs
Refinancing with a term loan or business loan: a common route is to replace MCAs with a longer-term loan that has fixed monthly payments and usually lower annualised costs. This can improve monthly cash flow but may add overall interest charges and fees, so careful comparison of Annual Percentage Rate (APR) equivalents and total cost is essential.
Consolidation via a single commercial loan or overdraft: lenders and brokers sometimes package multiple MCAs into one facility if the business has stable turnover and acceptable risk indicators. Consolidation simplifies administration and can enable negotiated lower settlement figures with MCA providers.
Negotiation or settlement with MCA providers: some MCA providers will accept a lump-sum settlement for less than the remaining balance or restructure terms if they view it as the best recovery option. Negotiations can be delicate and typically work best when mediated by an experienced broker or adviser.
Purchase or trade of MCAs: specialist firms sometimes buy outstanding MCAs and offer revised repayment schedules. These are niche solutions and often depend on the age of the advances, the business’s card volumes, and the visibility of future receipts. Consider the fees, transfer costs and any change in enforcement terms before agreeing.
Debt advice, formal solutions and hybrid approaches: where multiple high-cost MCAs cause severe financial strain, businesses may need formal restructuring, professional debt advice, or an insolvency practitioner’s involvement. These routes are serious and should be considered only after exploring refinancing and negotiation options.
How lenders and brokers assess your eligibility for consolidation
When you approach a lender or broker, they look at cash flow evidence, recent card receipts, and the proportion of turnover paid by card. Lenders also assess business profitability, sector risk (for example hospitality vs professional services), and the nature and age of the outstanding MCA deals. The more predictable your till or card volumes, the more likely a lender will consider refinancing or consolidation.
Key documents usually include recent business bank statements, merchant services statements showing card receipts, copies of MCA contracts, and management accounts. Lenders use these to model post-refinance cash flow and determine whether the new monthly or weekly payments are affordable. Brokers can pre-screen and match you with lenders who specialise in consolidating MCAs.
Credit history and ownership structure also matter. Although MCAs are often unsecured and less sensitive to credit scores than traditional loans, many refinancing lenders will check director credit histories and company performance. If your business has strong forward projections and evidence of stabilised card sales, your chances of a favourable offer improve.
Costs, risks and compliance considerations
Refinancing MCAs can lower short-term pressure but may extend the repayment period and increase total interest paid over time. Always compare the APR-equivalent of the MCA with the APR of replacement finance and factor in arrangement fees and exit costs. Transparency in quoting and avoiding misleading comparisons is essential for fair decision-making.
Key questions to ask potential lenders or brokers
What is the total cost over the life of the replacement facility, including fees and early settlement penalties? Will the new deal include personal guarantees or security, and how will that affect directors? What are the repayment mechanics — monthly, weekly or linked to card receipts — and are there early repayment charges?
Regulatory and advertising rules: Best Business Loans is an introducer and does not provide regulated credit products ourselves, and we do not offer regulated advice. We operate transparently and do not claim to be FCA-authorised for consumer credit or provide regulated advice. For regulated or consumer-facing finance, always verify whether a provider is FCA-authorised where required and ensure financial promotions are clear, fair and not misleading. Our role is to connect you to lenders and brokers who may be able to help.
Practical risks include potential default if cash flow worsens under a new schedule, personal liability if guarantees are required, and the possibility of reputational or operational disruption during negotiation. Get independent commercial or legal advice if large sums or guarantees are involved.
How Best Business Loans helps and next steps
Best Business Loans does not provide loans, and we do not act as a regulated lender. We help UK businesses identify refinancing and consolidation options by matching them to lenders or brokers in our network. Our AI-driven Quick Quote process speeds up pre-screening and connects you with professionals who understand MCAs and consolidation solutions.
How to start: complete our Quick Quote to receive a decision-in-principle or eligibility check from matched providers. Provide merchant statements, recent bank statements and copies of your MCA agreements so brokers can negotiate effectively on your behalf. If refinancing is viable, providers will present offers you can compare side-by-side.
One common solution is a refinance that replaces MCAs with a term loan or a single consolidation facility. You can read more about refinance options on our refinance information page here: refinance options. A matched broker can explain costs, timelines and likely outcomes tailored to your business.
Contact and compliance note: by submitting an enquiry you agree to share your details securely with vetted lenders and brokers in our network. We never sell your data and will only introduce you to providers who are relevant to your enquiry. If you need regulated consumer credit, check a provider’s FCA authorisation directly before agreeing any terms.
Key takeaways
- Restructuring or consolidating MCAs is possible but depends on cash flow, card receipts and the specifics of existing contracts.
- Common routes include replacement with a term loan, consolidation into a single facility, negotiated settlements, or sale of MCA receivables.
- Expect trade-offs: improved monthly cash flow may increase total cost or require security or guarantees.
- Use an experienced broker or specialist lender to compare offers and avoid costly mistakes.
- Best Business Loans can help you start with a Quick Quote to see which lenders or brokers are likely to consider your case.
Frequently asked questions
Can consolidating MCAs always reduce my payments?
Not always — consolidation can lower short-term cash outflows but may increase total interest. Each offer should be modelled to show monthly savings and total cost over time.
Will consolidation affect my business credit rating?
Consolidation itself does not automatically harm your credit, but new facilities, guarantees or defaults can affect credit profiles. Ask any prospective lender how they report to credit agencies.
How long does refinancing or consolidation take?
Timescales vary: a straightforward refinance might complete in a few weeks, while negotiated settlements or specialist purchases can take longer. Providing clear documentation speeds the process.
About the author and Best Business Loans
Best Business Loans is an independent UK introducer that uses AI to match established businesses with lenders and brokers. We do not provide loans or regulated financial advice, and we are not FCA-authorised as a lender. Our team has practical experience working with SMEs across retail, hospitality, logistics and manufacturing.
For tailored support, complete our Quick Quote to start a no-obligation eligibility check and receive matched introductions to lenders and brokers who handle MCA consolidation. If you want initial guidance before submitting, email hello@bestbusinessloans.ai and our UK support team will point you in the right direction.