If card sales fall, collections under a percentage-based merchant cash advance may fall too. That does not automatically suspend every payment obligation. Check your agreement for minimum payments, reporting duties and any repayment deadline, and contact your provider early if you expect difficulty.
What happens when card sales fall?
With a collection rate of 15%, £20,000 of qualifying monthly card sales produces a £3,000 collection. If those sales fall to £12,000, the same percentage produces £1,800. This is an illustration, not an offer, and excludes other contractual requirements.
Lower collections may extend the time needed to clear the balance. Rent, wages and other bills may remain unchanged, so a smaller deduction does not prove that the business has enough cash.
Check the agreement before assuming payments stop
- Qualifying sales: which receipts count and how refunds are treated.
- Collection method: a processor split, bank collection or another arrangement.
- Minimum payments: whether a minimum amount applies despite lower sales.
- Time limits: any repayment deadline and consequences of missing it.
- Notifications: when you must report closures, sales changes or other problems.
- Personal obligations: any guarantee or indemnity.
Provider terms differ. Published UK provider information includes examples of minimum monthly payments and an agreed repayment period. Do not rely on a general claim that every MCA has no fixed obligations.
Prepare for a conversation with your provider
Have your agreement, current balance, recent card statements and a short cash-flow forecast available. Explain when sales changed, the reason, expected duration and what the business can realistically afford.
Ask what support is available, how it affects costs and timing, and whether any change needs formal approval. Obtain agreed changes in writing. A request for help is not confirmation that a payment pause or revised collection rate has been accepted.
What if the business closes temporarily?
Tell the provider promptly and check reporting requirements. Explain whether closure is planned or unexpected, how long it may last and whether other sales channels continue. Do not assume that no card transactions means no contractual duties.
Do not change settlement arrangements or divert receipts to avoid agreed collections. Read our existing finance and card processor guide before making changes.
Should you take more funding to cover repayments?
Further funding creates another commitment and may not solve a continuing shortfall. Compare the cash retained after all repayments and operating costs. A renewal or refinance needs a fresh affordability assessment.
If the company cannot meet its debts as they fall due, seek prompt advice from a qualified accountant or licensed insolvency practitioner. Do not ignore creditor correspondence or court deadlines.
Frequently asked questions
Can I cancel collections myself?
Stopping a payment instruction does not cancel the underlying obligation and could breach the agreement. Discuss the position with the provider and obtain advice.
Will the finance fee reduce when sales fall?
Not automatically. Check the agreed pricing and request an up-to-date balance and explanation.
Can a director become personally liable?
That depends on any guarantee, indemnity and other applicable obligations. Read our personal guarantees guide and seek advice on your documents.
Discuss your funding position
Contact PDQ Funding or call 01246 233108 to discuss your circumstances. For an existing agreement, contact the provider responsible for collections directly. Our costs guide explains the figures to review.
Sources: UK provider repayment information and British Business Bank MCA guide.
PDQ Funding is a broker, not a lender. We receive lender commission following a successful introduction. Funding is subject to assessment and provider terms. An enquiry does not guarantee an offer.
Reviewed 7 November 2026.