WHAT IS A BUSINESS CASH ADVANCE?
Business Cash Advances are a type of company financing that helps firms get the cash they need in a more flexible way. The lenders will advance the company money, which the company will repay with a portion of their receipts.
Business Cash Advances are ideal for a wide range of enterprises. Compared to more traditional formats, this type of financing is a lot easier to obtain. A business cash advance is a financing option for businesses that need capital to expand, but may have a poor credit history, no/few assets or work in industries which have challenges when raising traditional financing.
Business Cash Advance repayments are calculated as a percentage of the money received into the business’ bank accounts (which we monitor by accessing your bank transactions directly – see here for the list of institutions we work with) which makes it a convenient and quick financing option for SMEs.
CAN I GET A BUSINESS CASH ADVANCE?
In theory, any business can get a business cash advance and you don’t need a payment card terminal to do so! Because we can rapidly see how much money the business produces on a monthly basis, they may agree on a funding amount and repayment plan much faster than with other funding choices. It’s an excellent option if your company doesn’t have any valuable assets or simply needs cash quickly.
HOW DOES IT WORK?
We won’t charge you interest on your Business Cash Advance, rather, we take a percentage of your receipts on your bank accounts plus a minimum Weekly amount. We will share our calculations with you before applying for your weekly payment on, or on the business day immediately after, the Wednesday of the following week.
EARLY REPAYMENT DISCOUNT
You have the option to repay early and reduce the repayment amount during the first 6 months of the loan. Your discount and reduction in amount to be repaid is calculated as the pro-rata proportion of the maximum Early Repayment Discount based on the date of the final repayment if you settle the Business Cash Advance during the first 6 months. It is at your discretion entirely whether to repay us early and take advantage of this discount.
IS IT A SMART IDEA TO TAKE OUT A BUSINESS CASH ADVANCE?
Despite the fees associated with this product, a Business Cash Advance has numerous advantages for businesses.
- QUICK ACCESS TO MONEY — This is especially useful for businesses that can’t afford to wait weeks for a response from a lender.
- SIMPLE APPLICATION PROCESS — only a small amount of documentation is necessary. In the vast majority of circumstances, the business will not be required to provide collateral [i.e., your assets] such as a car, property, or other valuables.
- REPAYMENTS THAT MOVE WITH THE BUSINESS — The more money your business receives through the bank accounts, the faster you’ll be able to repay the Business Cash Advance. Yes, it will take longer to return the Business Cash Advance if you have weeks with less business receipts, but less repayment means it’ll be easier to manage cash flow during lean weeks.