A business cash advance is available to businesses who accept credit and debit card payments for their products and services. The advance is usually an amount which is a similar figure to their current monthly card turnover. When the business makes a future sale via their merchant account, a percentage of that sale is automatically repaid to the lender.
Often referred to as a merchant cash advance as it uses merchant technology as the vehicle to calculate and repay the funding.
This short-term, unsecured and flexible source of funding provides a fast and convenient cash boost for business.
Repayments are aligned with cash flow which means a business pays back less when they have a quiet month. There are no fixed monthly repayment terms or restrictions on how they use the funds to grow their business.
A business cash advance is an unsecured funding loan tailored to adapt to the peaks and troughs of your business activity. Repayments are in line with your actual card sales, therefore a flexible option for businesses with peaks and troughs in their cash-flow.
The amount you can borrow is calculated on your average monthly turnover of credit and debit card transactions. The repayment structure is agreed to suit the needs of your business. A percentage of each card transaction will be repaid automatically via your card terminal to the lender until the balance is cleared down.
There are no fixed monthly repayment terms or penalties. A business cash advance removes the pressure associated with traditional business loans as it gives you complete peace of mind. You’ll pay less when your business has a quiet spell as you only repay the advance when you make a sale via your merchant terminal.
You can use your business cash advance to grow your business quickly. Whether you’re looking to refurbish your premises, invest in stock or boost your cash flow. The repayment term is relatively short, typically within nine to twelve months. Repayments are taken automatically at the time of sale. An agreed percentage will go to the lender, and the remaining amount credited to your business.
Repayments will follow your card sales and is ideal for seasonal businesses with periods of high and low sales throughout the year.
A restaurant owner borrows £20,000 and agrees to pay back £24,000.
Let’s say the business generates, on average around £30,000 per month on card sales, and they agree that 10% of every future transaction will be used to pay back the advance.
Therefore, the business would pay back £3,000 per month and would take approximately eight months to repay the amount.
Remember, it’s based on card sales only, so your cash sales are not affected.
The process is quick start to finish. The application takes about one minute to complete. Our system checks that your application is eligible and a free quote is offered by the lender. This is also a quick process and your quote is with you usually within fifteen minutes. Once you accept the quote and confirmed the funding it can be with you within a day – sometimes even the same day!
As an unsecured form of alternative finance, you will not be required to provide a commercial or personal asset as security against the advance. Some other forms of traditional business finance do however require you to allocate such forms of security.
Repayments are transferred automatically to the lender as your card transactions are processed. You won’t have to complete any additional paperwork, make separate repayments or change your merchant PDQ machine or provider. It is that straightforward.
Repaying the advance falls in line with your monthly takings, so you won’t have to worry about meeting a fixed repayment sum like other traditional forms of business funding. You only repay the advance as and when you accept credit and debit card payments. Therefore you won’t be under pressure to repay when business is slow.
Your cash sales are not taken into account to calculate or repay the advance meaning you keep 100% of your cash sales.
Remember, your business only has to be trading for three months to qualify for a business cash advance, so it’s ideal for young businesses who wouldn’t otherwise qualify for other forms of business finance.
Searching the web for ‘business loans for poor credit’ ? A business cash advance offers the solution as lenders don’t prioritise a poor credit history when assessing an application. Generally, if your business meets the other criteria and is in good shape you should have no issues with qualifying. We’ve helped many business owners with no or bad credit history find this type of funding a solution to their needs.
If your business accepts payments via a PDQ merchant terminal, you could qualify for a short-term, unsecured business cash advance. You must operate a UK-registered business that has been trading for a minimum of three months. Traders with a poor credit history will be considered but may be required to provide a longer trading history. You will be asked to declare your monthly turnover of credit and debit card transactions.
If you do not meet these criteria, we can help you find the finance you need to grow your business via our range of other funding solutions.
A business cash advance offers one of the most flexible funding options for UK retailers and merchants. Find out if you qualify by applying online for a business cash advance today. You will receive a free, no obligation quotation within 24 hours.
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