A merchant cash advance is an alternative form of commercial finance that works by repaying only when you makes sales with your customer via credit and debit card transactions. It is the perfect franchise business loan, especially for retail franchises who take credit and debit card sales from their customer via a merchant terminal otherwise known as a PDQ machine.
We have helped many small and large franchise businesses find the funding they need via our merchant advance product. Some of the most popular franchise businesses include Spar stores, Subway, Bargain Booze, Nisa Shops, and more.
So how does a business loan for franchises work?
As with all retail businesses, most, if not all, take credit and debit card transactions from their customers. Depending on how much money is taken on card takings monthly, the business franchise owner can raise up to 150% against monthly card turnover. As the business makes a sale on a card transaction, a percentage is automatically deducted and repaid against the advance amount.
This is a great way to repay as it works in line with your cash flow. If the business takings are a little down for the month, then the repayments are less for that month – you are not expected to meet a regular fixed repayment figure.
There are no hidden fees or charges, just one agreed on repayment figure and an agreed percentage of each card sale to repay the loan. This percentage will be a figure that sits comfortably for the business owner and has a low impact on sales.
A business cash advance is also an unsecured form of business finance which means the business owner doesn’t need to secure a business or personal asset against the funded amount.
Business loans for subway franchises and more
Our business loan can help support franchises like Subway, Pizza Hut, Costa coffee, Starbucks, Toni and Guy, Vape store, Onestop and more. We can help similar business franchises raise the funds they need to help with growth, restoration, refurbishment, marketing and general daily cashflow.
Can the business loan be used for a franchise startup?
Yes, if your business has been trading for more than 3 months on card, then a cash advance is the perfect business loan for startup franchises.
Getting a loan for a franchise business
Getting a loan for a franchise is easy. Apply today to see how a franchise business loan through a merchant cash advance is the ideal solution to your funding needs.