Editor’s note: This is a guest post from Scott Pittman
Business finance has always been tricky to obtain but with the recent recession it is now harder than ever before with a much more stringent application process. The banks are more reluctant to lend than they used to be which means that the way you do business may need to change with many small business owners struggling to manage their working capital.
If you are lucky enough to be accepted for a business loan, the monthly repayment is usually fixed, unlike the cash-flow of many businesses, which can again lead to working capital challenges.
What a surprising number of SME owners aren’t aware of is that there are alternative business financing options available that can be surprisingly flexible. One such option that is gaining popularity here in the UK is the merchant cash advance.
There are currently a selection of online lenders offering this business loan alternative with many of them building up a strong reputation due to high acceptance rates, quick turnaround times and flexible repayments.Instead of having a fixed monthly repayment, you agree a percentage of your customers future credit and debit card transactions meaning that the advance is repaid at the same pace as your business transactions.
The main requirement is that your business processes more than about £3500 per month in card payments. The amount you are able to borrow usually depends on how much your business processes in card payments and anywhere up to £150000 could be available. If you require more than this then you may be forced back to the banks or other alternative alternative business financing options, such as the merchant cash advance and you may find a more flexible solution to suit your needs.
Scott Pittman has worked in the finance industry for many years and has an online presence on many reputable websites where he shares his knowledge and experience for the benefit of others.
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