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When to Use a Merchant Cash Advance

When would you use a merchant cash advance? With traditional forms of finance becoming increasingly difficult to access, many people looking at a merchant cash advance. Here are just some of the ways you could use it. A merchant cash advance is becoming increasingly popular for those businesses who need an injection of capital in a hurry. It can help you overcome immediate cash flow problems or invest in the future of your business. Here are some of the most common ways people use a merchant cash advance to its best ability.

How does a merchant cash advance work

Use merchant cash advance

You can use a Merchant Cash Advance for anything you like.

First, you need to understand how a merchant cash advance differs compared to other funding options. As the name implies, this is a cash advance against revenue from your credit and debit card sales. This makes it an ideal option for a retailer or any other business which takes a significant portion of its revenue via card terminals.

Providers will make their decisions based on how much revenue you receive. So, for example, if you take £10,000 via your card terminals that might be how much they are willing to advance. The provider will then take a portion of your future card sales until the sum is paid off. It can be quicker and easier to access than a conventional loan and is a good way to get money into your accounts quickly. Here are just some of the ways people use it. 

Business renovations

Are your premises in urgent need of renovations? If so, a merchant cash advance can provide an upfront cost to help you cover the cost of repairs. This could be a relatively expensive enterprise so you may need to consider a slightly longer repayment term. Some providers will only operate on the basis of either credit or debit card sales, so it could be a good idea to choose one which will consider both in combination to maximise the amount you can borrow. Example a public house needs to be re-decorated for spring, a merchant cash advance for pubs would be a perfect fit.

A short-term emergency

One of the most common reasons people use a merchant cash advance is to cover a short-term cash flow crisis. If you’re struggling to meet your immediate financial liabilities, the consequences for your business could be catastrophic. In a worst-case scenario, you may be forced into liquidation.

However, if the fundamentals of your business model are relatively sound – namely that you have a decent flow of revenue – a merchant cash advance may be a perfect solution. This will cover your short-term obligations and help you find the money to stay afloat.

This option is particularly useful thanks to the flexible nature of repayments. Because they comprise a percentage of your future card sales, they will rise and fall alongside your revenue. In theory, then, you should only be paying as much or as little as you can afford at any one time.

Invest in technology

Digital transformation is a fact of life and no business can truly afford to ignore it. Digital technology can create huge opportunities, but you can only take them if you can afford the upfront investment.

Unfortunately, this investment could be crucial to your future survival. If you don’t make the change now, your competitors will and this could give them an advantage at every stage of the process. The longer you go without adopting technology to match them, the further you will fall behind. They will be able to get more products to market sooner and at a more competitive price. Over the long term, you may find it becomes impossible to compete. Example : MOT Centre needs the latest diesel smoke meters and decelerometers, a merchant cash advance for MOT centres would work perfectly.

You have a poor credit rating

The first port of call for any business in need of a capital injection will often be a business loan. Unfortunately, these have become increasingly difficult to access. Unless you have a good credit rating most lenders may be reluctant to work with you. Even those which do will demand a high interest rate in return.

A merchant cash advance doesn’t rely on a credit rating to the same extent. This is not technically a loan. The provider is offering you the advance based on your past card sales, and projected future performance. As such, they have a much clearer indication – beyond your credit history – about how safe an investment this will be.

You need the money quickly

A key advantage of a merchant cash advance is the speed with which it can be set up. While you may find yourself waiting weeks or even months for a decision from your bank, a cash advance could be up and running within a day. There are fewer forms to fill in which will free you up to concentrate on other matters. It’s faster, more effective and easier for all concerned.

Different merchant cash advance providers will have their own rates and terms. Some will charge higher fees and have different repayment structures. Others will restrict themselves to just credit or debit card transactions. Spend a little time doing some research to find the best option for you.

Use working capital today

If you feel your business could use the working capital from a merchant cash advance, the process is simple to get started. Simply complete the online enquiry form to get the application under way.

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By | 2019-02-05T11:50:54+00:00 February 5th, 2019|Merchant Cash Advance & Business Cash Advances|1 Comment

Are Business Cash Advances The Best Option For My Company?

What are Business Cash Advances and what are the best options for my company? The number of companies using a business cash advance is growing, but what is it, how does it work and is it the best option for your business? Access to finance is a critical issue for businesses of all kinds. Ever since the financial crisis, banks have been reluctant to lend money. The options if a business needs a short-term injection of cash can become quite limited, which leaves businesses looking around for options. One of the best option’s are business cash advances.

What are business cash advances?

Business Cash Advances best option

What are my companies options with a Business Cash Advances in the UK.

Business cash advances effectively allows you to borrow against your future card sales. Providers only look at the amount of revenue you receive through your credit and debit card sales. They will advance a lump sum based on past performance which you can put to any use you like.

They recoup their money by taking a cut of your future revenue until the sum has been paid off. In good times, when card sales are busy, you’ll pay it off more quickly, and in slower times, your payments will decline making everything a little more manageable.  

Why use a business cash advance in the UK

There are many ways you might want to use a business cash advance in the UK. It could be a good way to give yourself a cushion when you’re coming into a fallow period. Many businesses in the UK will be seasonal and can experience peaks and troughs. Like squirrels preparing for winter, they will be looking to build capital during the busy periods in order to see them through the quieter times. If they can’t, for any reason, it might be difficult to get through winter. A merchant cash advance UK can keep you in business until better times swing around.

You might also use it for more positive reasons such as investing in business improvements. We live in a fast-paced digital world and, if you’re not moving forward, you’ll be heading backwards quickly. You need to innovate to survive, but that takes money. You may use the capital from a business cash advance to invest in new infrastructure equipment or people. This means that, even if you don’t have much money in your account, you can still capitalise on developments which can move your business forward.

The best alternative option to loans

One of the biggest attractions for small businesses is the thought of using a different option in place of business loans. If you have a poor credit history, you might not qualify for a small business loan. There may well be some providers who will specifically offer loans for companies with a bad credit history. However, these can be expensive and may do nothing other than force you deeper and deeper into debt.

A business cash advance is quicker and lighter on the paperwork. Because this is an advance, the provider will not need to know as much about you as your bank. They can process the money and have it in your account on the same day.

Business types that can use the best advance

The cash advance for business works best for companies in the UK that take card payments. A card payment terminal is requested for the cash advance. Merchant cash advances for pubs, Merchant cash advances for MOT Centres, Merchant cash advances for hairdressers, Merchant cash advances for retailers. this list is endless to the types of business that this finance product can support.

Getting hi tech

We are also seeing some of the best business cash advances providers getting ready for the digital future. Two companies, Swift Payments and Bitty Advance are pairing up to offer a virtual merchant cash advance service. This provides users with instant access to virtual funds after they have secured a business cash advance. These funds can then be paid into a mobile wallet such as Apple Pay.

Are they worth the money?

Of course, there is one drawback: money. The best business cash advances with no credit checks will inevitably cost money. You’ll be paying a daily retrieval rate until the money is paid off and you’ll also have to pay fees. These may vary from provider to provider so it is important to shop around and secure the best deal possible.

Ultimately, the question revolves around whether or not you will receive a decent return on investment. The answer depends on how you use it. A good way to use a merchant cash advance is to inject working capital into an otherwise healthy business which is running into a cashflow brick wall. In this situation you only need to stay afloat until business picks up.

However, if the fundamentals of your business are not quite as strong, you could simply be postponing the inevitable. An advance may squeak you through this crisis, but you may find yourself facing another, bigger one, before long. If that’s the case you could be throwing good money after bad.

A merchant cash advance, then, is a lot like any other financial product. Whether it is value for money or not will depend to a large extent on how you use it. 

Get the cash flowing

If you feel business cash advances can support your business, the best way to get started is simply  complete the online enquiry. Once its received a funding expert will contact you.

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By | 2019-02-17T20:07:28+00:00 February 4th, 2019|Business Cash Advance UK|0 Comments

Top Five Tips To Get A Great Interest Rate On Business Cash Advances in 2019

If you need a quick injection of capital, a Business cash advance could be the answer. The repayment rates varies between providers. Here are our cash advance five top tips! and how to get the best deal possible. January can be a difficult time for businesses of all kinds, but especially in the hospitality sector. Christmas is over and everyone is in a mood to diet for the new year which means that sales are slow. In some ways it will be nice to catch your breath after the hectic festive season, but at the same time your finances can suffer. If your cashflow is starting to look shaky a business cash advance can help.

Here are our top 5 tips that cover everything you should understand before taking out a business cash advance. It is important for any business owner to understand the implications and liabilities that they may incur when taking out business finance in 2019.

Business Cash Advance in the UK

Top Five Tips for Business Cash Advances in 2019

Top Five Tips for Business Cash Advances in 2019

  1. Understand what a cash advance is

A Business cash advance in the UK is quicker and easier to set up than a loan. Your credit rating will not be as much of an issue and there’s less paperwork to be filled in. Decisions are made on the same working day and the money can be in your account within one or three days.

This is a cash advance against your credit or debit card sales which is why it’s such a good option for pubs and restaurants. They will look at your card sales and decide how much they are willing to advance. They will then receive a cut of future card sales until the sum has been paid off.

  1. Is a merchant advance right for you?

A business cash advance may not be perfect for every company. It only focuses on revenue coming through card and debit card sales. If you are mainly paid by invoices or bank transfers, this might not be the best option.

Providers will look for a good track record of payments. Ideally, they will want to you be receiving around £30,000 or more per year through debit or credit cards. You must have at least six months’ worth of payment records to show.

Credit rating is not as important as with a bank loan, but it will still play a part in their decision and may impact the overall cost.

Business Cash Advance Costs?

  1. Understanding the cost

The cost is determined by two things: your funding fee and the split percentage.

  • A funding fee is the cost of advancing the money. This may vary from provider to provider, but costs can be quite high so it’s worth shopping around.
  • The split percentage is the amount of your card receipts that you’ll be paying back. This may vary from month to month. So, for example, if you’ve agreed a 10% split and receive 20,000 through card receipts in month one. You will be paying £2,000 back to the provider. This will continue until you have paid back the overall amount plus the funding fee.
  1. Repayment periods

Generally speaking, this is a short-term lending option with most merchant cash advances being paid off between one and six months. If you’re using the money to cover a short-term expense a shorter payment period might be the best option. If it’s for a larger investment you might want to make it a little longer.

Many cash advance from business providers will also offer a discounted funding fee in return for a higher split of your credit and debit card revenues. So, for example, you could agree to a high split of around 30-40% in order to reduce the overall cost of the advance.

Business Cash Advance No Credit Check

  1. Get your finances in order

Here is our top tips number 5 for a merchant cash advance. Although you won’t need as much paperwork as with other funding options. The Funder will still want to see evidence that your business is in reasonably sound working order. If you can show a good historic revenue stream. Funders will be more confident advancing the money as they know it will be coming back to them. There are no credit checks with a merchant cash advance.

This is also a good idea from your own perspective as you need to feel confident that this is something you can afford. Like many financing options, this is something you should only do for the right reasons. In other words, if your business is struggling and you’re simply trying anything to stave off disaster this could make things worse. However, if you know money will be coming in, it can be a great way to ensure your company remains on a sound financial footing.

Business cash advances UK will not be for everyone. Whether it’s right or wrong will largely depend on the provider you use and your own financial position. You should also take time to shop around to get the best deal. However, this has been proven to help many businesses of all kinds secure a welcome cash boost.

Apply now for a Cash Advance

We hope that our top 5 tips for a business cash advance helps answer a few questions you may have had. Should you like to know more simply complete the online enquiry form.

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By | 2019-01-26T11:30:53+00:00 January 24th, 2019|Top Five Tips for Merchant Cash Advances in 2019|0 Comments

Why Business Cash Advances in the UK may work for you

If you need a short-term capital boost, business cash advances for the UK may well be the answer you’re looking for. Here’s why. Every now and again a time comes when your business needs an injection of capital. It may be because you want to invest and drive the business forward. Sadly it may be something less pleasant such as a cashflow crisis. Either way, you may find yourself in need of a capital boost to ensure your business moves forward, but where can you find one?

With banks increasingly reluctant to lend, business cash advances in the UK may be the perfect solution.

How do business cash advances work in the UK

Business Cash Advances in the UK

Business Cash Advances in the UK

Businesses face a number of pressures. An increasingly uncertain economic climate means many are operating on tight profit margins. Furthermore, banks continue to be reluctant to lend which means many firms may find themselves unable to access capital.

That could be an enormous problem if you need money in the short term. The solution could lie in alternative forms of finance such as a business cash advance.

Unlike bank loans, a bad credit score will not be a huge problem for the simple reason that this is not a loan. It is, as the name implies, an advance made against the future performance of your business. You will receive a lump sum. In return you will pay the provider a proportion of your future credit or debit card sales until the money is repaid.

The amount you can receive will depend on your previous sales. The best business cash advances provider in the UK will use this data to calculate how much they would expect you to earn for the duration of the contract. You will then pay back a percentage of that revenue and an agreed fee.

Why use a business cash advance

The main attraction for businesses is the speed with which you can arrange a cash advance. In some cases, you may be able to get the cash you need within a few hours. In comparison it could take days or weeks to get a decision on a bank loan. There is less paperwork to manage, which also reduces the time you spend on administration and frees you up to work on growing your business.

It is also more accessible. Business cash advances typically have high approval ratings. A bad credit history, for example, will not be as much of a barrier as it would be for securing a loan. It is also more flexible. Because payments are structured as a percentage of your sales, you only pay back as much as you can afford. If business is not as good as you expect, for some reason, your monthly repayments will be lower.   

How to use it

You may use the cash advance in any way you wish. For some this is a chance to solve a short-term cash-flow crisis or cope with a large bill which needs to be paid. If money is tight, this could help you meet your obligations, manage your payroll and keep going until your money comes in.

Equally, some businesses may use it to invest in their future. The world of business is evolving rapidly and becoming more competitive. In many cases, you may face an unenviable choice between moving forward or facing oblivion.

For example, the rise of digital technology offers a host of opportunities to improve business performance. If you don’t adopt this technology, your competitors will, in which case they will be able to deliver services more quickly and cheaply. In the long run that could put the health of your business in jeopardy.

A lump sum will give you the capital you need to make this investment and ensure you keep pace with the competition. Cash advance loans are offered though a business credit card machine is relatively new type of business borrowing in the UK. Alternative finance has seen an explosion over the last five years.

Choosing the right merchant cash advances in the UK

When used in the right way, merchant cash advances can have enormous benefits for UK businesses. That said, it may not be for everyone. The contract will only be made on your revenue from credit or debit cards. It would be a particularly good idea if you’re a retailer taking card payments over the till. On the other hand, if you are paid in a different way, such as a bank transfer, this may not be the best option for you.

The fees can be quite high so it’s important to shop around. Make sure you understand all the costs you will be charged so you have a clear idea of how expensive the deal will be. Browse the market and spend time finding a provider offering the best terms for you and your situation.

As with anything, a merchant cash advance UK should be approached in the right way. You should weigh the costs against the benefits, research the market and make sure you have a clear plan for how you intend to use the money. If you have all that in place, this could be a crucial tool for the future of your business.

How do we get a cash advance for business

If you feel that a cash advance for business may help support your UK based business. It is so simple to raise business finance working capital with the cash advance. To apply for unsecured business funding of up-to £200,000 in a few days. Complete the online enquiry form to get started.

 

By | 2019-02-04T18:59:39+00:00 January 7th, 2019|Business Cash Advance UK|0 Comments

Five Ways a Merchant Cash Advance Could Help Your Restaurant.

With times getting tough in the restaurant trade, a merchant cash advance could help overcome a crisis and invest in the business. Life can be tough in the restaurant business. With wages stagnating, many people are reluctantly cutting back on dining out. However, the market shows no sign of becoming less competitive with more restaurants opening up all the time, which means there’s less business out there and more people trying to get it. 

As a result, many restaurants will find themselves struggling from time to time which is why a merchant cash advance can be crucial.

Difficult times for Restaurants in the UK

merchant cash advance restaurant

Merchant Cash Advances for Restaurants

The last year saw a 20% rise in restaurant failures as difficulties in the high street filtered through to the restaurant trade. With high profile campaigns like ” Dry January ” which encourages people not to drink alcohol it’s getting tough.  Previously the sector has remained curiously resilient to the recession with people still being determined to hold on to their little luxuries. Now, though, the sector is struggling and many restaurants are struggling to make end meet.

With money in short supply, restaurants are becoming vulnerable to temporary shortages in cash flow which could – in some cases – lead to business failure. They are also struggling to find the money to invest in innovations and promotions which could prove crucial to their future success.

Restaurant profit margins hit a significant low in 2008, when the profit margin for restaurants across the industry declined to an excruciatingly thin 0.5 percent. Since then, they’ve risen steadily, reaching about 2 percent in 2013, and then 3 percent by the end of 2016 and, finally, 6 percent by the end of 2017.

To solve all those problems, they need an injection of cash and a merchant cash advance for restaurants looks like a good option.

Here are five ways it can help : 

  1. An alternative to bank loans

Accessing credit through a bank loan may be difficult for some restaurants, but a business cash advance for restaurants offers an attractive alternative. The provider will pay you a lump sum up front in return for a portion of your future revenue.

When deciding whether to work with you or not, the provider will look at your historic credit and debit card sales records and use those to extrapolate what they think you will receive in the future. You will then pay a portion of that revenue back until the sum is paid off. Because it is based only on credit and debit card revenue this makes it a particularly attractive option for restaurants.

A merchant cash advance for a restaurant tends to be easier to access. This is an advance, rather than a loan, so your credit rating will not matter as much as it would with a loan. The lender is advancing you the money based on your expected future business rather than your past payment records. The business cash advance is an alternative to a restaurant business loan.

  1. Flexible repayments

A merchant cash advance is a flexible way to borrow money. Repayments are based on a percentage of future revenue from the business PDQ machine. If business is good, you will pay it off quickly. If not, you’ll be able to spread the payments over a longer period of time. It ensures that, whatever happens, payments are affordable.

  1. Overcoming a cashflow crisis

A cashflow crisis can happen to any restaurant business – even one which is successful – however it can be devastating. If you’re unable to make all your financial commitments, you may be forced out of business. If you can’t pay your staff on time, they will be likely to look for alternative work.

A cash advance can give you an injection of cash to ensure all those payment obligations are met, and that you can continue operating until money comes in.

  1. Investing in your business

The restaurant industry is highly competitive. The pressure is on to continue investing to ensure you stay ahead of the competition but finding the money can be difficult. This is a front-loaded proposition in which you’ll be investing substantial sums of money before you start to see the returns. A merchant cash advance for your restaurant can provide thousands of pounds to put into the company and keep moving forward.

  1. Making repairs

Damaged equipment can be debilitating for businesses, but if you don’t have the money to make repairs, problems can continue to mount up. Imagine, for example, that there is a problem with the lavatories, or crucial cooking equipment. It can harm your reputation and damage operations across the organisation.

A merchant cash advance can enable the restaurant to make all repairs, promptly and ensure your business continues to perform as it needs to.

Finding the right restaurant cash advance provider

As with anything, there are many different Business Cash Advance UK and some will be better than others. You should shop around, work out what fees you’ll have to pay and what the true cost will be over the course of the deal. The cost can sometimes feel high, but whether you’re trying to overcome a short-term crisis or raise the money for an investment in your restaurant business, it can be immensely valuable.

Restaurant business funding 

Restaurant business funding has been hard to gain in the past due to the risk that is associated with the industry so the high street banks have failed to deliver on their promise to fund the high street. Alternative business funding firms like PDQ Funding have filled that gap! Cash Advances from £5,000 – £200,000 in a few days. No personal guarantees needed.

If your restaurant business needs funding simple complete the online enquiry. 

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By | 2019-03-09T12:35:10+00:00 January 7th, 2019|Merchant Cash Advance Restaurant|2 Comments