If you are looking for the right kind of business funding or commercial finance for your tea rooms you may find that a merchant cash advance otherwise known as a business cash advance is the perfect solution for your business.
You see there are several main points of difference that distinguishes it from a conventional business loan. Unlike bank loans and other forms of commercial finance, there is no APR. The loan is repaid as and when your business makes sales via credit and debit card transactions.
Unlike a loan from your bank, you don’t pay off the same amount each month regardless of your sales being high or low. A business cash advance takes a manageable percentage of each transaction when you make a sale. So, when your sales are low your repayments are low.
There are no fees or early or late payments which you may have heard about with other types of commercial finance and funding options.
As the repayments are linked to your merchant sales you may pay off the loan quicker if your sales are good and the product gives your balance sheet grace when your sales are low. Remember you only pay the loan off when you make sales.
So when your customers pay their bill at your tea rooms via a credit or debit card a small amount of that sale goes towards repaying the loan.
It’s unsecured too which means you don’t have to secure a personal or business asset to find the funds you need. The amount considered by the lender to borrow for your tea room will depend on how much monthly turnover your tea room business is doing.
The funding doesn’t take your cash sales into consideration when calculating or repaying the loan.
A merchant cash advance also works as it’s seasonal for your business – it fluctuates with your sales so that it never puts you or your business under financial stress.
So sit down with a cup of tea and a scone and apply today for a no obligation quote. Our team can help and advise you further at any point.