Alternative business finance 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, however, the banks often have a criteria which smaller businesses (SME’s) cannot fulfill, so small and medium-sized business needs other funding options.
What is Alternative Business Finance?
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 and dozens of products available.
If your customers pay you via card payment terminals, the merchant cash advance could provide many benefits to your business. 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. The repayments are taken at source, making it simple and hands-off for busy company owners.
Most retail companies use card payment terminals, making up for a large percentage of sales. Electronic payments can be tracked and analysed easily by yourself and the provider. This is one of the main advantages to merchant cash advance.
How Can Other Alternative Business Funding Help Your Business?
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 to £200,000, helping 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. 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 business cash advance quicker.
Contact Us Today
If you would like to discuss your businesses financial requirements in a view to using alternative business finance, complete the online inquiry form and a business lending specialist will contact you.