What is a Business Cash Advance?

With a Business Cash Advance, funders will advance your business around one months’ card takings for any business purpose. That capital, plus a one-off fee agreed at the start, forms the repayable balance you owe back to them. Repayments are taken via the Merchant being sent an agreed % deduction of your daily card sales, only as and when you make sales, until that balance is repaid.

For example, a business doing £20,000 on their Card terminal might receive £20,000 advance from the funder, with a £5,000 fixed fee added (this equates to a fixed 25p per £1 fee – charges can be between 9-35p per £1 advanced). They then deduct 15% of their Card Payment takings until the £25,000 has been repaid. This may take 3, 6, 9, or 12 months depending on how their sales go!

The minimum advance is usually £2,500 but could be as much as £500,000. The funder then simply collects from the chip & pin machine sales as they occur, with no fixed monthly payments and no fixed deadlines to repay. So, if your sales are lower, your repayments will be lower too.

This is a great funding solution for businesses operating in the retail sector such as pubs, salons, florists etc. The funds can be used for any purpose, whether it be to repay a Tax Bill, carry out Refurbishment works, or fund stock/equipment purchases.

Why Cash Advance?

  • Receive one months’ average card turnover
  • Over 80% of Applications Approved
  • Quick decisions and process
  • Homes not at risk (no need to be a homeowner)
  • One-off fee applied (no hidden fees, no extras, no penalties)
  • Further advance available throughout the facility

To qualify, your business needs to be;

  • Trading with a merchant account for more than 4 months
  • Processing a minimum of £2,500 per month via the merchant account

If you would like to find out more about how a Business Cash Advance could help your business, please get in touch with a member of the Key Team now.