Merchant Cash Advance
You may be thinking what is merchant cash advance and how does it work? It’s a straight forward way of obtaining funds. If your business takes debit and credit card payments with a medium to high volume of transactions a month, this method of funding can be extremely lucrative. Small to medium sized business tend to use this method of funding due to its flexibility and risk balance. It can generate anything up to 150% of monthly turnover in one lump sum. The repayment term is flexible depending on the lender. It’s often used as a short term form of finance, up to 12 months, giving you a flexible way of funding. Enquire today to find out how this can work for your business.
Enjoy Merchant Finance with
Merchant Cash Advance?
Merchant cash advance can be set up quickly with funds straight into your account, commonly 2-3 days from enquiry. It can act as a fast, flexible affordable way of raising capital as required. Repayments are predominantly based on a fixed percentage of the transactions that go through the card machine. This is because as the business fluctuates so does the amount of repayments. This allows the business to stay in control of how much they are paying back each month. Unlike many other forms of finance, the repayments alter with the business.
Businesses in the hospitality industry can be very seasonal throughout the year. Often hospitality businesses experience strains on cash-flow with fluctuating stock levels, wages, and daily running costs. A merchant cash advance loan can ease this burden on cash-flow. It suits these circumstances, as it allows for an initial payment to the business. Following this, the repayments are taken out daily reducing the strain on cash-flow whilst giving the business the financial support it requires.
Simple card machine finance
With a Merchant Cash Advance
The draw back to merchant cash advance is it can work out expensive if used as a long-term method of financing the business. This type of finance solution is designed to be short term. If card sales significantly drop, you may find yourself spending a long time to repay the borrowing. The period of which you borrow the funds is limited, so again borrowing the right amount is key.
The merchant cash advance facility can be tailored by the lender to suit the client's needs depending on the levels of turnover and circumstances. There is no set amount of which everyone pays, as this can vary on the lender. However, at Pinnacle business Finance we go to market for you to secure the most appropriate facility for the business.
Often businesses in hospitality have to buy stock in advance of busy periods. This works well allowing cash now and repayment’s focused on the busy periods.
If you run a business that is reliant on cash with little tangible assets, this is perfect. It can generate anything up to £300,000 and is a short term way to raise cash.
Merchant cash advance can be setup quickly with funds straight in your account. It’s a efficient and fast way to raise cash.
Merchant Cash Advance UK
Easy Business Funding
Merchant Cash Advance can work out expensive if used all the time. This type of finance solution is designed to be short term.
If card sales drop, you may find yourself spending a long time to repay the borrowing. The period you borrow is limited, so again borrowing the right amount is key.