Merchant cash advances are an alternative business finance product. The concept is really simple and already proving very popular with businesses that operate in the retail and the hospitality / leisure sectors in the United Kingdom. The cash advance uses your PDQ card payment terminal to fund future lending. This alternative funding solutions is perfect for businesses without many assets to use as security. A good volume of card transactions though your card payment terminal each month is required. Repayments are then taken as a proportion of your revenue usually between 7 -15% of each payment taken. Merchant Cash Advances are a quick and easy funding solution for SMEs.
ADVANTAGES OF OUR BUSINESS MERCHANT CASH ADVANCE
Every business needs capital from time to time but a bank loan isn’t always accessible. In some cases it just might not be the right option for your business. A Merchant Cash Advance offers a very different way of receiving a financial boost but without so many restrictions on the repayments.
A business cash advance gives the lender rights to claim a proportion of your future sales in return for giving you business funding upfront. Working with the company that provides the card terminal and processes payments, the merchant cash advance lender will receive an agreed proportion of future transactions until the cash advance plus the fees are paid off.
QUALIFYING CRITERIA FOR A UNSECURED CASH ADVANCE
Not every business will qualify for a Merchant Cash Advance but the qualifying criteria is far more relaxed than traditional finance. The exact requirements will vary between lenders but as a general rule of thumb, you’d need to meet the following criteria:
• UK based company • A minimum of 3-6 months trading (some lenders may require 12 months) • A strong history of card payments with a minimum of £2000-£3000 per month
Some lenders may want to take a look at your own credit history but the checks will be far looser than other types of borrowing.
