Business Cash Advance is a new route to finance which can be accessed by West Midlands retail businesses looking to gain access to finance.
Although the name of the finance product may say it all, this new finance product which has so far proved to be both very successful and popular for the past few years in America – is now starting to prove to be a big hit here in the UK.
Is a Business Cash Advance the same as a Merchant Cash Advance?
The product also is known or referred to as a Merchant Cash Advance is a finance product aimed more specifically towards the retail business sector and works in a very simplistic way.
It does this by effectively lending money to a retail business on their future sales and surprisingly enough it can be quite easy for them to obtain a cash advance.
Especially for established retail businesses who have a history of taking payment for their sales via credit and debit cards. Although in some instances this may not be the case, in that the merits of a business cash advance can be looked at and if a business is not already taking payment(s) by cards it could be looked into as to the feasibility of setting this facility up for the business.
For such a business, a decision on the award of this product can be made within hours of an application with receipt of the money not long after. In reality, there is no limit to the amount which can be borrowed so long as it falls within the sales history of the retail businesses.
So if a retail business has historic sales of 20k a month then it could look towards a minimum cash advance of 20k, if its 50k per month then is 50k and so on.
If a retail business is successful in an application then the payment for it is then taken at source – meaning that an agreed percentage of the future 20k per month sales are taken directly via the merchant payment and the balance of monies due are paid to the retail business, the same as happens currently.
There is no limit to how a Business Cash Advance is spent, therefore it can be used on various business needs such as cash flow, paying a VAT bill, the purchasing of extra stock, the refurbishment of a shop etc.