Business Cash Advance which can sometimes be referred to by some as Merchant Cash Advance is a fast growing alternative finance route for UK consumer styled businesses. The Business Cash Advance facility allows such businesses to gain access to working capital by allowing them to sell their future credit card receivables.
As a relatively new finance product within the UK the Business Cash Advance route to finance is providing thousands of small businesses with a short-term cashflow solution.
Business Cash Advance gets you access to finance
For a business to qualify for Business Cash Advance it needs to be using a PDQ (Process Data Quickly) Terminal for credit and debit card payments plus there are other certain criteria such as:
- The business requires a minimum of twelve months trading statements through its PDQ
- Plus a minimum of £3,500 average customer spend per month through card payments.
For those businesses who use PDQ machines, a business cash advance offers a relatively easy to secure loan when compared to a typical business bank loan or overdraft.
Certain businesses get more form a Business Cash Advance
Although a Business Cash Advance can be accessed by a business from within any industry so long as it sells through card transactions. There are certain get more from such a method such as:
- Hospitality
- Hotels
- Pubs and Restaurants
- Retail
- Health and beauty
- Automotive services
- Other high streets stores
What are the benefits of using a Business Cash Advance?
Here are some of the key reasons why the Business Cash Advance method of funding is now picking up in the UK:
- Easy to secure – there is no need for assets to secure this loan which makes it much easier to obtain than a traditional bank loan or overdraft facility.
- Simple, flexible repayment – the repayments are percentage based with usually no other costs involved, meaning you can pay the loan back whenever you can without being penalised for a time delay.
- Use the cash how you please – once you have the money, it is up to you what you use it for, whether it’s for purchasing stock, investing in staff, property refurbishment or maybe even purchasing new premises.
- No need to change service provider – the majority of lenders for Business Cash Advance have no need for you to change your PDQ service provider, and those that do make it an easy process.
