Merchant Cash Advance
A Merchant Cash Advance is ideal for pubs, clubs, restaurants and hotels at times when they wish to expand, refurbish, renovate, restock or branch out.
What is a Merchant Cash Advance?
- A Merchant Cash Advance is a flexible, quick alternative to a traditional unsecured loan, available to businesses that take credit and debit cards.
- It provides an unsecured cash advance, equivalent to up to 100% of a company’s average monthly card turnover.
- The advance provides the liquidity to fund any future growth plans without having to overstretch current overdraft or other financial commitments.
- There are no repayment deadlines and the advance plus agreed fee is simply recouped via an agreed % of future card takings on a daily basis until it’s fully repaid.
What is a Merchant Cash Advance used for?
You are free to use the funds for whatever you chose however, the most popular usage for funds (30-40%) is refurbishments, for example decorating and restoring; change of room usage, redesign of entrance and facilities or outdoor areas, or an addition of B&B facilities at pubs.
Many Advances are used to fund ‘additional sites’ for expanding businesses.
Other uses include equipment purchase, stock replenishment and marketing or training.
Who can use a Merchant Cash Advance?
There are certain criteria that suit a business to using a Merchant Cash Advance:
You must trade with your customers using debit or credit cards
You must be of a certain size and stage in your business lifecycle i.e.
- Not a Start Up
- Take between £3.5k and £250k per month through your card terminal
- Have been trading at least 8 months
If you want to find out if a Merchant Cash Advance is the right solution to help your business grow, give us a call on 01403 258934 or email us.