A merchant cash advance, also known as a business cash advance is a type of unsecured business finance. They are generally a short term and flexible form of borrowing designed to inject working capital into a business quickly. Business cash advances are used to aid cash flow, purchase stock or fund business growth.
Merchant cash advances are generally offered with an agreed repayment amount upfront, for instance, an advance of £20,000 could have an agreed repayment of £24,000. They amount of time taken to repay the money is less clear, with repayments linked to your revenue. This can make an APR comparison slightly tricky, but is counterbalanced by the certainty of cost upfront.
Repayments are generally set as a fixed percentage of revenue through PDQ terminal (card terminal) payments, meaning use of PDQ systems are crucial for raising this type of finance.
Business cash advances tend to complete very quickly, meaning they are ideal for when your business needs money in a hurry. They are fast becoming a very popular form of finance in the UK, helping thousands of UK businesses already.
The flexibility offered through business cash advances is often highly beneficial to business owners. The usual strain of finance costs during quieter periods is no longer a problem with your agreed repayments always staying in line with cash flow.
To qualify for a merchant cash advance, you generally only need to have been trading for 3 months and ideally be taking over £500 per month in card payments. If you don’t quite meet these points, don’t worry, we may still have options available to you.
Advances between £500 and £300,000 are generally available and you could be approved within hours. You keep all of your non-card income, meaning you don’t have to make any payments on top of the agreed card payments.
At ABC Finance we are totally committed to supporting SMEs. We want to save UK businesses money on their finance costs and make the whole process of raising funds more accessible. That’s why we partner with all the market leading providers to access the cheapest possible terms. Our team of friendly advisors are on hand to talk through your finance needs.
To find out more or to receive a free quotation, enquire online now. Alternatively call to speak to one of our team on 0800 088 6008 or 01922 620008 from a mobile.