SME’s often struggle to find the funding they need for their business. With many business finance options available, we take a look at a business cash advance and how it works.
A business cash advance is type of finance designed for businesses that accept card payments through a card machine such as shops, restaurants, hairdressers, garages and online traders.
- The business receives a cash lump sum from the advance provider based on your historic average monthly card turnover. The money can be used for almost any business purpose including the purchase of new stock, remodelling premises, taking on more staff or paying for advertising or other marketing materials.
- Repayments are made via a small percentage of future card sales.
- The advantage of this type of funding is that there is no fixed monthly payments. So, if your card sales increase, then the repayment is paid sooner, if sales are low, you pay it back slower.
Infographic Source: https://www.merchantloanadvance.co.uk/how-does-a-business-cash-advance-work/