The Merchant Cash Advance product is more popular than ever following the UK’s decision to leave the European Union, according to sources. The historic vote saw the UK snub the Union against all odds, leaving existing members reeling and unsure as to what will happen next.
The news hit the stock markets hard, with banks in particular feeling the brunt. Some £10bn was wiped off the value of RBS alone during the first week, and many others saw unsettling drops in value. The uncertainly has caused widespread panic across the finance sector, and banks are understandably tightening the purse strings while the markets settle.
For SMEs, many must soak up the uncertainty and simply carry on as usual, or face falling behind. A part of this includes accessing funds to grow and prosper like they would have done pre-Brexit. However, with banks on a knife-edge, traditional funding routes are becoming more and more scarce.
This is where the Alternative Business Finance market has come into its own. The Merchant Cash Advance product in particular has become a fantastic alternative in the midst of this economic and constitutional uncertainty. Those who accept card payments from their customers are able to take advantage of this product.
How does a Merchant Cash Advance work?
A Merchant Cash Advance lender will assess your monthly card sales volume and will lend accordingly. Then, once funded, the loan is paid back through future card sales (a percentage is agreed prior to funding). This means that the loan itself is paid of in-line with the company’s growth. So, when the business has a better month than normal, the loan will be paid off in a shorter period of time. Likewise, during slower months, the payments will reduce to reflect this.
If you accept payments using a card machine, this could be the perfect product for you. If you’re looking to invest in an opportunity, equipment or even build an extension, get in touch with our team to see what could be available for you.