MCA Repayment Explained: How It Works
MCA repayment: 10-20% of daily card sales automatically deducted. Busy day = higher repayment. Quiet day = lower repayment. Real examples showing exact process.
How MCA Repayment Works
- You process £1,000 in card sales Monday
- Your card processor settles to your account
- Before settlement, lender takes 15% (£150)
- You receive remaining 85% (£850)
- Process repeats daily until total amount repaid
Real Week Example: £50k Advance at 15%
| Day | Sales | Deduction (15%) | You Receive |
|---|---|---|---|
| Monday | £2,000 | £300 | £1,700 |
| Tuesday | £1,500 | £225 | £1,275 |
| Wednesday | £1,800 | £270 | £1,530 |
| Thursday | £2,200 | £330 | £1,870 |
| Friday | £2,500 | £375 | £2,125 |
| Saturday | £3,000 | £450 | £2,550 |
| Sunday | £1,000 | £150 | £850 |
| TOTAL | £14,000 | £2,100 | £11,900 |
Notice: Repayment varies each day (£150-£450) based on actual sales. No fixed £300/day regardless of performance.
What If Sales Drop?
Scenario: Sales drop 50% due to quiet period.
- Normal week: £14k sales → £2,100 repayment (15%)
- Quiet week: £7k sales → £1,050 repayment (15%)
Repayment automatically halves. This protects your cash flow. Compare to fixed loan where you'd still owe full £2,100 regardless.
Repayment Timeline
£50k at 1.25x (£62,500 to repay) with 15% deduction:
- £2,000/day avg sales → £300/day repayment → 208 days (~7 months)
- £1,500/day avg sales → £225/day repayment → 278 days (~9 months)
- £3,000/day avg sales → £450/day repayment → 139 days (~4.5 months)
Can Lender Take More Than Agreed %?
No. If contract says 15%, they take exactly 15% - not 16%, not 20%. This is regulated and fixed.
Conclusion
MCA repayment is automatic percentage of daily card sales. Flexible (adjusts to your performance), transparent (exact % in contract), and protects cash flow (drops when sales drop).