Teya Cash Advance, launched January 2026, lets Teya merchants access £1,000 to £2,000,000 based on their card processing history. Repayment is a daily percentage of card sales, not a fixed monthly amount.
In January 2026, Teya launched Teya Cash Advance in partnership with YouLend, an FCA-authorised embedded finance platform. This product allows Teya merchants to access business funding based on their card processing history, without the documentation requirements of a traditional bank loan.
A Merchant Cash Advance (MCA) is not a loan. It is a purchase of a portion of your future card sales revenue. The key difference matters:
Because repayment flexes with your revenue, an MCA can be a useful tool for businesses with seasonal or variable income.
Teya Cash Advance is powered by YouLend and accessible directly through the Teya app. Eligible Teya merchants see an offer in their app based on their payment history.
Range: £1,000 to £2,000,000.
How much you receive: Determined by your average monthly card processing volume and trading history.
Repayment: A daily percentage deduction from your card sales, ranging from 5% to 20%. The deduction continues until the total advance plus the fixed factor cost is repaid.
Funding timeline: Once approved, funds can be in your account within 24 hours.
Application process: Pre-approved based on your Teya payment data. No lengthy paperwork in most cases. Open Banking is used to verify your bank account.
Unlike a loan with an annual interest rate, an MCA charges a factor rate. This is a multiplier applied to the amount you borrow.
Teya Cash Advance factor rates range from 1.10x to 1.35x. In practice:
There is no APR in the traditional sense because the repayment period is variable. A higher-volume month means you repay faster. A slower month means repayment takes longer, but you never owe more than the agreed total.
YouLend is an FCA-authorised embedded finance platform. Key facts as at April 2026:
Source: YouLend website (youlend.com) and Teya product release page (April 2026).
To access Teya Cash Advance, you generally need:
Eligibility is determined by Teya and YouLend based on your payment data. If you do not yet meet the threshold, continue building your processing history and an offer may become available.
| Feature | Merchant Cash Advance | Bank Business Loan | Business Overdraft |
|---|---|---|---|
| Application paperwork | Minimal (payment data) | Extensive (accounts, projections) | Moderate |
| Repayment schedule | Variable (daily, as % of card sales) | Fixed monthly | Revolving |
| Speed of funds | 24 hours | Days to weeks | Days to weeks |
| Requires collateral | No | Often | No |
| Typical cost vs loan | Higher factor rate | Lower if approved | Varies |
The MCA route costs more per pound borrowed than a bank loan if you qualify for a bank loan. But for many SMEs, bank loan approval is difficult or slow. The MCA trades a higher factor rate for speed and accessibility.
This article explains how the Teya Cash Advance product works. Whether it is right for your business depends on your specific circumstances, cash flow, and the alternatives available to you. Klipy is a payment processing ISC, not a financial adviser. Please speak to a qualified financial adviser or accountant before taking on any form of business finance.
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This content is published by Klipy UK, a Teya-authorised reseller of payment solutions. The views expressed are for informational purposes only and do not constitute financial advice. All content is the intellectual property of Klipy UK. Reproduction without permission is prohibited.
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