MCA renewals, when to top up
Most lenders open a top-up once you've repaid around half the original advance. It's tempting, same paperwork, faster decision, more cash. But topping up isn't always cheaper than paying down and applying fresh. The maths matters.
When the top-up unlocks
The standard threshold across UK MCA lenders is 50% of the original advance repaid occasionally 40% with strong-volume merchants, occasionally 60% with newer or thinner files. Some lenders restart the clock at 35% if your trading has improved meaningfully since the original.
How the top-up actually works
Most lenders don't extend the original facility. They settle the existing balance and rewrite a new, larger advance, at a fresh fixed cost against the new total. That detail matters because the "saving" you think you're getting on the renewal can quietly disappear into a re-quoted rate on the portion you've already been paying down.
The compounding maths
Imagine you took £10,000 at 1.25 and repaid £6,250 of the £12,500 total. You ask for a £15,000 top-up. The lender settles the £6,250 outstanding, advances new funds, and writes a new agreement for, say, £21,250 at 1.24. That looks fine, until you notice you're paying the fixed cost twice on the £6,250 you'd already been paying down.
Effective cost on the "fresh" portion is closer to a fixed cost of 1.30 when you strip out the double-charge. Always ask the lender to break out: settled balance, fresh funds, total new repayable. Refuse vague single-line quotes.
Top up vs pay off and reapply
If you've got runway, paying off and applying fresh is almost always cheaper. The problem is timing:
- Top up when you need money this week and don't have it sitting in the account. The speed premium can be worth the extra cost if the use of funds genuinely pays back faster.
- Pay off and reapply if you can wait 2 to 3 weeks. You'll get a cleaner quote, often a better fixed cost (fresh applications get sharper pricing than renewals), and no double-charging.
Renewal red flags
- Lender pushes a top-up before you've hit the threshold and won't show the maths.
- The new fixed cost is higher than the original despite stronger trading.
- You're being offered a top-up to plug a gap from the previous use of funds. That's a signal the original was wrongly sized.
If you're approaching renewal, run a fresh quote through us first, we'll compare your existing lender's renewal offer to the open market. Quick Apply.
Work out the real cost.
New businesses typically start at a higher daily % and a shorter term.
£45,000 is the maximum advance for your card takings (150% of monthly card takings).
Illustrative only, not a quote.
- Advance£45,000
- vs card takings150%
- Fixed cost1.25
- Daily repayment£148
- Avg monthly£4,500
- Est. term12.5 months
Illustrative. The fixed cost is set on day one; daily repayment varies with takings. Term capped at 18 months.
Illustrative only, not a quote. Every figure here is subject to the funder. Funders advance anywhere from 100% up to 150% of monthly card takings, so 150% is not guaranteed, and the fixed cost is not guaranteed either. Your actual advance, fixed cost and terms depend on the funder and your business profile.
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