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New and innovative way to finance
Do your customers use their bank cards to pay you? If so, merchant cash advances might interest you. Over the last few years, merchant cash advances have become very popular with business owners who want to raise money. For many businesses, particularly those with few assets or operating in the leisure sector where finance can be difficult to obtain, merchant cash advances are a quick and cost-effective way to make sure there is money in your business should you need it.
How merchant cash advances work
If you take payments from customers by card, you have a provider. Your provider will work with a company that pays merchant cash advances. How much you can borrow is based on the card payments coming into the business in an average month. You do not have to undergo a credit check, neither does the lender expect to scrutinise your accounts. They don’t need to because they can see from the information provided to them by your card terminal provider what your average monthly income from card payments is, and they will advance a loan to you and set a repayment schedule based on that.
Service Central can secure you merchant cash advance arrangements for up to 120% of your monthly card takings. Depending on the size of your business, loans of between £5000 and £500,000 are available. We have a 95% success rate in securing merchant cash advances for our clients.
With merchant card advances you don’t have to worry about making repayments, the provider does it for you using the money that comes through from your customers. There are no bills and no direct debits to set up. Your provider will continue to make repayments until the debt is cleared, leaving you free to focus all your energy on your business.
Merchant advances provide flexibility
The repayments on your merchant card advance are based on a percentage of your business income taken by card. During busy periods, such as at Christmas time when your business is booming, you will make higher repayments than you would during a fall in trading. You are not committed to fixed repayments because payments increase and decrease along with the amount of business you are doing and this provides greater flexibility. You are not restricted to using advances for cash flow purposes only and can use them for anything that keeps your business running, including equipment and machinery.
Why merchant card advances may not be suitable for your business
The amount of money you can draw down as a merchant card advance is based on your average monthly takings by card. If you need a lot more than this, you won’t get it. If card payments represent only a proportion of your takings because customers pay in cash or by bank transfer, the amount you can raise through merchant cash advances may be too small to be worthwhile.
Service Central can provide you with all the help and advice you need on merchant card advances. They are a fast and uncomplicated way to raise finance, let us see if they are suitable for you.