Alternative Business Finance – Merchant Cash Advance.
Alternative business finance e.g merchant cash advance is any type of business finance that doesn’t come from a mainstream provider like a high street bank. High Street business finance is great for many businesses — but the banks often have criteria which smaller businesses (SME’s) cannot fit in to their criteria, so small and medium sized business need other funding options.
In the past, alternative business finance providers were hard to find, and might have had a specific product or sector they specialised in. There’s a huge variety of alternative business finance lenders available and dozens of products, so you can find the business finance that’s right for you — and it’s often much faster than through the bank.
If your customers pay you via card payment terminals, a merchant cash advance gets you a cash sum based on future card sales, generally up to a month’s revenue. It’s quick, straightforward, and a good fit for businesses with a high number of low-value transactions like cafés, public house and shops — and the repayments are taken at source, making it simple and hands-off for busy company owners.
These days most retail companies use card payment terminals for an increasing percentage of their sales. Electronic payments can be tracked and analysed easily. A merchant cash advance takes advantage of this.
What is Alternative Business Finance?
Basically, a merchant cash advance is an unsecured advance of cash based on future credit card and debit card sales. The alternative business finance lender works with the card machine provider – the company which processes all your card transactions – to analyse your recent sales.
Because the electronic payment methods let the provider and user review sales data in a transparent fashion, the lender can get a clear view on the level of transactions flowing through your business. One of the real plus points of a merchant card advance is that because of this transparency there’s no need for a business to present a couple of years’ worth of trading accounts or to go through the dreaded credit check.
Alternative Business Finance funders can offer you anywhere between £3,000 and £300,000 to help boost your business with the use of a merchant cash advance product.
When it comes to repayment, we’ll agree a fixed percentage of your future credit or debit card sales with you, meaning you only pay back when your business earns. There’s no APR or fixed payments, just one simple cost. So if your business slows down for whatever reason, your payments will also slow down. This is ideal if you’re running a seasonal business, as there’s no need to worry about struggling to keep up with repayments. Likewise if your business is booming, you’ll repay the merchant cash advance quicker!
If you would like to discuss your businesses financial requirements in a view to using alternative business finance?, complete the online enquiry form and a business lending specialist will contact you.