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Although the government describes small and medium sized business as ‘vital’ to the UK economy, it’s still far too difficult for them to access appropriate small business finance. In fact, the UK’s Small Business funding gap is estimated between £25-50 billion for its 5.2m SMEs and the Bank Rejection rate for SMEs is 50%.1 .

Whilst the peer-to-peer lending market is supporting the more formal funding requirements that SME’s have, the gradual removal of overdraft facilities has left thousands of businesses with a reduced ability to respond to more spontaneous business opportunities or cope with cash flow pain points.

Thankfully, this unique funding option is plugging that gap! Business cash advances are being used successfully by restaurant owners, hairdressing salons, garages, pub owners, fashion retailers and others to manage cash flow, grow their businesses and refurbish their premises.

So what is a business cash advance?

Business owners accepting credit & debit card sales from their customers are able to access up to 140% of their monthly average card takings as a lump sum with a decision in as little as 24hours, allowing them to respond to special offers, new business projects and seasonal cash flow issues.

It’s an alternative business lending option which is unsecured, so your home is not at risk and is far more flexible than a business loan as you repay based upon an agreed percentage of your card sales being sent to us. This allows businesses to have both busy and quiet months without worrying about fixed payments –  the lender only gets paid when you do.

How easy is it to get one?

We’ll be honest. The cost of the alternative lending models like business cash advances, tend to be higher than those that are secured on assets, as you would expect. However many businesses are happy with this – growing a small business is simultaneously exciting and nerve wracking so getting access to flexible funding without putting their home at risk gives business owners peace of mind for the future.

Some of our customers only have to be trading with card payments for 4 months or more, the documents required are minimal and we provide decisions in as little as 24 hours. Most importantly, we approve over 80% of applications, making this option quite attractive to those wanting a hassle free, cash injection without the strings.

Danielle Munro, Liberis

The other important point on cost is that you’ll know upfront the exact amount you pay back (there are no admin fees or hidden costs). This gives you the information you need and time to consider whether or not the business cash advance terms will provide you with a good return – finance can be used for any business purpose and most of our customers have great ideas they want to fund.

Unlike a bank loan, there is no set repayment period. The repayments will simply continue until the advance has been settled in full as you make sales. Of course, we’d always advise business owners to make some kind of projection of how long they’ll be repaying – but there are no penalties for taking a little longer to repay than you first expected.

The market for this product is experiencing huge growth in the UK and the market leading lender we work with is the only provider of this product to have UK Government backing via the British Business Bank. Enquire today for a FREE quote.

1 Nesta 2015 report