More often than not, small businesses look to their local bank for business funding. But what happens when your bank manager says ‘no’? Chip and pin loan solutions could be the perfect commercial loan product.
Why? The product, otherwise known as a merchant cash advance, is a loan that is raised to the equivalent to that of your credit and debit card monthly sales. This amount is advanced to your business as an unsecured loan with the repayments being structured as and when your business makes sales via card transactions with your customers.
When you make a sale, a percentage of that sale is immediately repaid back to the lender. This percentage can range and usually starts at around 10%. Depending on your business and your cash flow, this percentage is agreed upon upfront so that your business can trade with a comfortable repayment value.
This repayment method clearly has advantages too. If your business has a slow month on sales, then you will, of course, pay back less in that month and, if your business has a good month with increased sales, then you will pay off the loan value quicker.
Merchant funding is classed as an alternative business funding product. As the product has helped many businesses in the UK over the last eight years and is now backed and funded by the UK government via the British Business Bank, it is easy to see why it has become far more mainstream.
We have helped many small businesses raise the unsecured quick business loan they need. Almost any business that uses credit and debit card machines can apply for this type of funding. It may be a restaurant, hotel, café, MOT and tyre centre, florist or gift shop – the list continues. Even if you or your business have a poor credit history, a chip and pin loan could be the perfect option.