Definition of Business Cash Advance
“Business cash advance s a type of business loan, normally a short-term borrowing facility, based on previous debit and credit card sales, which is repaid weekly as a percentage of future card sales. This type of lending particularly suits retail and leisure businesses, looking for a short-term financial boost.”
If you are running a retail or leisure business, it probably seems like unexpected expenses can come out of nowhere, whether that’s because you have to replace equipment, carry out a short-term marketing push or just because of a temporary dip in trade.
Business Cash Advance for retail and leisure
Our lender’s business cash advance loans are ideal for the retail and leisure sectors because whether you run a bar or a florists, a nightclub or a hairdressers, you are never immune to seasonal fluctuations and changing trends that can cause ebbs and flows in profits. They are also suitable for limited companies, sole traders and partnerships alike.
How Business Cash Advance works
If you have a credit or debit card processing history of six months or more, with average monthly sales of £2500 plus, you could get the cash advance your business needs. This is repaid in line with future income, so you can avoid having to seek out a conventional loan for a quick cash flow fix.
To calculate the terms of a cash advance loan, our lenders will look at your card sales over the last 6 to 12 months, assess how much they can offer and then calculate repayments as a percentage of your future debit and credit card sales, as opposed to a fixed sum.
This flexibility will make it easier to stay in control of your cashflow – if you have a bumper week you’ll repay more and your commitment will be fulfilled more quickly but if it’s a week where sales are poor, you won’t become overstretched.
Flexible repayments that suit the pattern of your trade
As repayments are automatically debited from your account on a weekly basis, a business cash advance loan is well suited to retail and leisure businesses with their fast turnover of cash. You don’t have to worry about large monthly direct debits as the repayments will fit in with the rhythm of your trading patterns.
It also doesn’t matter if you are a fairly new business without years and years of accounts. We can also find cash advance solutions even if you have a chequered financial history.
Running a retail or leisure business can be hard – rising rents, tricky employment law and ever-changing tax and VAT rules have made it more complicated, and costly, than ever. So a cash advance loan could be just the temporary boost that your business needs to get customers through the doors and spending cash.
Business cash advance loans are an ideal short-term boost for any retail or leisure business that takes debit or credit card sales. Some of the solutions we have provided include:
- Busines cash advance for bars
- Busines cash advance for restaurants
- Busines cash advance for hair and beauty salons
- Busines cash advance for florists
Before taking a business loan out, please make sure that you can afford the monthly repayments as failure to keep up with repayments could affect yours or your businesses creditworthiness, which may affect your ability to obtain credit in the future.