Merchant Cash Advance for Equipment Purchase – Is it right for my business?

Merchant Cash Advance for Equipment Purchase – Is it right for my business? image

Buying equipment for your business and accessing the funds quickly has been revolutionised by the use of a merchant cash advance.

Rather than a traditional asset finance product many small businesses are using a cash advance not only as an alternative but their first choice with a round 70% of customers choosing to return and top-up.

Unlike many other types of funding where you repay a set percentage each month on your loan is repaid a merchant cash advance for equipment purchase works with your cashflow. Let me give you an example. We fund many restaurants and other small businesses and in this case it is a restaurant who required a new kitchen refurb and equipment purchase for their new site.

Venturing down the asset finance route and comparing options with a standard commercial loan the restaurant owner made a simple application to ourselves. We took him through the process and advised on each part of the process and what that meant in reality.

Other types of commercial finance he looked at involved arrangement fees, broker fees, admin charges, late penalty or early penalty repayments and a set repayment schedule at the end of the month.

A merchant cash advance for equipment purchase loan works alongside your credit and debit card sales only repaying an agreed percentage of each sale when you make them.

This is particularly helpful when you have monthly fluctuations on sales. A low volume month on sales would mean you pay back less off the loan taking away the pressure on your cashflow.

By not having fees, charges and hidden costs helps business owners with the transparency of their loan product.

With the case of the restaurant owner we helped by making the application process simple and straightforward. In his case as the funds were also required quickly we were able to process the application quickly so that he received funds the very next day.

If your business requires funding for equipment purchase obtain a quick quote from us today. It’s on a no obligation basis and we won’t pressure you at all. We’re just happy to explain how the merchant cash advance works in more detail.

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