Merchant Cash Advance vs Asset Finance

Merchant Cash Advance vs Asset Finance image

If you are looking for finance and you are gathering in quotes from mainstream business finance providers such as banks or Asset finance companies there is a funding option you may not have heard about. It’s called a merchant cash advance and is the ideal solution for businesses owners seeking finance to fund new equipment purchases or simply grow their business.

Take an example let’s say you are a catering establishment and you take credit and debit card sales that total more than £2500 per month, you stand a very good chance of qualifying for a merchant cash advance.

So what makes a Merchant Cash Advance a better Solution than Asset Finance?

It differs in a number of positive ways.

1. It works with your cash flow. You only repay the loan as and when your business makes card sales. Let’s say you make a sale of £200, £20 will automatically go to repay your advance and the £180 is paid into your business bank account. Unlike a bank loan where you have to meet a certain agreed repayment valve at the end of each month a cash advance gives your business space to breathe paying back lower amounts when your sales are low.

2. It is unsecured funding which means there is no request to secure a personal or commercial asset such as your home or business premises against the funding.

3. It doesn’t affect your cash sales. These are not taken into the equation for funding or repayment.

4. A business cash advance has no APR, no hidden charges or early or late repayment penalties. Just one agreed repayment value which sits comfortably with your business cashflow.

5. It’s backed by the UK government via the Investment arm of the British Business Bank.

Many of the businesses we help are in the hospitality and retail sector. It makes sense as so many of these businesses use card sales to process sales with their customers. This unique form of alternative finance is growing in popularity month on month and is expected to keep growing in the UK as more businesses embrace the unsecured form of finance which has become so rare over the last ten years.

If you are a catering company we can help you kit out your commercial kitchen. Maybe you need new equipment such as Combi Ovens, Dishwashers, Convection Ovens, Pizza Ovens, Coffee and Espresso Machines, Refrigeration systems, Heated and Ambient Displays or maybe you are looking for a total return or new premises. Or, perhaps your catering company needs new transportation – whatever your requirement we can help and offer a true alternative business funding solution. The same applies to any business that takes card sales from their customers. If you are thinking about a bank loan or asset finance maybe it’s time to think again – or at the very least get a comparative quote.

We see over 80% of our customers who use us for their funding needs renew their loan for future requirements and all round business growth. Apply today for your free no obligation merchant cash advance quote and see how we can help your business grow.

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