Small business financing is different than the funding for larger companies. If you are a new business, however, you can obtain a cash advance to maintain your operations and stay afloat. Moreover, you can easily go online and see how much funding you can obtain. Usually, you can obtain the funds that you need in ten business days.
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An Alternative Funding Solution
If you are seeking an alternative means to finance your small business, this is the way to do it. Again, all that you need to do is apply online. Approval takes only a few days.
Types of Small Businesses That Use This Type of Loan
Websites such as Liquid Finance offer this funding source for an array of small businesses. Small businesses that apply for the cash advance include the following:
- Retail stores
- Bars and pubs
- Restaurants
- Hotels
- Dry cleaners
- Veterinarians
- Dentists
- Hair and beauty salons
- Garages
- Online retailers
How to Apply for the Funding Online
When you go online to apply for funding, you will select your business type first. Next, you will indicate how many years you have been in business. You also want to include your monthly card takings and the amount of finance required.
This alternative funding source is used to describe any funding that is outside the methods used in traditional financial institutions such as banks. Therefore, start-ups often choose an alternative form of financing instead of applying for a bank loan or overdraft.
Specifically, this form of alternative financing is defined as a merchant cash advance. The cash advance is allocated based on a business’s average monthly takings from their credit or debit card terminal. The advance, including a factor rate charge, is repaid for the financing. The charge represents the daily percentage of the takings for debit and credit cards. The amount is repaid to the funding source until all the money plus interest is remitted.
Do You Qualify?
In order to apply for a merchant cash advance, you need to have been processing credit or debit cards or at least 12 months. You must also realise an average monthly turnover in card takings of at least £3,500. Applicants must own their business space or have at least a year still due on their lease. In turn, they may borrow up to the complete amount of their monthly turnover for credit and debit cards.
Whilst you do not need to supply a business case to apply for a cash advance, you should be detailed and clear about how you plan to use the funds. Again, this type of funding is unsecured. Therefore, you do not need to provide any source of collateral, which makes it just that much easier to apply for the funding. Most of the business people applying for this loan source are normally approved.
How the Cash Advances Are Used
Typically, business people use a merchant cash advance for the following:
- Making business renovations
- Expanding a business
- Adding stock or inventory
- Upgrading equipment
- Developing a website
- Adding to an emergency fund
This type of funding is indeed flexible as you can renew or receive additional funds. This can be done as long as you remain in good standing and pay a percentage of the advance before renewal.