How does a Business Cash Advance work?

How does a Business Cash Advance work? image


A business cash advance is an alternative finance product that’s aimed at small businesses such as retail, restaurants and pubs that have strong monthly credit card revenue. Unlike traditional loans, it works alongside your business card sales performance, so there’s no fixed term – you only pay back as you earn.

Here’s how a business cash advance works

1. The provider will give your business the funds you need to help with cash flow, stock purchase, refurbishment, and other business needs.

2. The provider deducts an agreed percentage from your everyday credit and debit card sale transactions. The percentage can vary based on your business and performance but expect to pay back at least 10% from all sales. For example, if your daily card takings are £1000, you only pay £100 back to the provider. Remember, you keep 100% of all cash income.

3. There’s no fixed term with this finance product. It works with your business performance, so you pay back less in slow times, and in busy times you pay back faster. You continue to pay back until the loan is fully repaid. Additional top-up advances are available to your business.

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