The Smart Alternative to Bank Loans
Merchant Cash Advance
(for companies/sole traders, particularly those running hotels, restaurants/takeaways, petrol stations, shops – in fact, any business where the takings are largely made up of card payments as opposed to cash).
Merchant Cash Advance is proving very attractive as many businesses struggle to raise, not only the right type of finance, but sufficient to expand - and in some cases just to keep going. It is basically a simple loan against estimated future sales paid for by debit card or credit card. No need to wait to carry out those refurbishment / upgrade plans - take out a loan where the repayments automatically go up and down in line with your earnings easing the strain on your cash flow.
A recent deal we completed was for a small garage trading for 1 year whose clients tended to settle invoices using card payment. The proprietor sought ￡25k to expand his business and purchase new machinery but didn't want to over commit himself. The solution? - a card loan: very simply the ￡25k was advanced and thereafter repaid over a variable term as a set % of future card takings: no extra charges or interest incurred over the term other than what had already been agreed up front.
Plus point: the advantage of this product is that when takings are low then the repayments are low. And when business is good, the client pays back proportionately more towards their loan.
Key Points
- Loans from ￡3.5k to ￡500k
- No security or Business Plans are required.
- minimum monthly card sales of ￡3k needed
- up to 150% of future estimated card sales can be borrowed against.
- One off fee agreed at outset for duration of the facility
- no hidden extras, admin fees, interest etc.
- Loan repayments are taken as a fixed % of card sales eg 10% ( so for every ￡100 of card sales, customer’s bank receives ￡90 with ￡10 being repaid towards the Merchant Cash Advance Loan.
Please remember we have access to a wide range of lending products and services for all types of business customers and in many instances can arrange finance for clients who have been turned down elsewhere. All you have to do is call me today on 07925 124083 and we can do the rest.
Jim Heron , Business Development Manager, SterlingMC Commercial Finance.