Retail finance - a new way to get a small business cash advance

We are pleased to be able to announce a new product, the Merchant Cash Advance,  for retailers allowing them to take a cash advance (min £3,500; max £200,000) secured against future debit/credit card sales. Up to 100% of their average monthly sales (based on the last 12 months) is available and it can be repaid over a flexible time period. The way it works is straight forward: if you can show that you have consistently had a certain level of sales via debit/credit cards then you can apply for a cash advance based on this track record - effectively your future debit/credit card sales are being "bought" with this cash advance. The amount you can get is usually equivalent to your average monthly debit/credit receipts and when it is advanced a repayment amount is agreed. After that the retailer agrees to pay 10-20% (as suits them and their cash-flow) of all future debit/credit card receipts towards repaying this cash advance. Whether it takes 1 month, 24 months or more it does not matter as there are no early repayment charges and no repayment deadlines. As an example: if you have an average £10,000 monthly sales on debit/credit cards over the last 12 months you can take a cash advance for £10,000 and a repayment amount of based on a factor fee is set (the repayment amount will vary based on your turnover level and the nature of the business). After the £10,000 is received by the retailer - and this can be arranged in less than a week - an agreed percentage of every future debit/credit card payment they receive (usually 10-20%) will go towards the repayment amount. Once the repayment amount has been reached there is no further liability and, again, it doesn't matter how long this takes. To qualify for this business cash advance you need to meet four criteria:

1. Have a debit/credit card PDQ payment terminal and process at least £3,500 per month (averaged over the last 6 months)
2. Be able to show 12 months of debit/credit card receipt data (18 months if you initially require more than £30,000)
3. Have at least 1 year remaining on their lease and not be in arrears on the lease (Landlord information will be required)
4. Be able to supply 3 Trade references

If you can meet these criteria then you are eligible for a business cash advance. There are several advantages to this type of cash advance:

• Speed: It can be arranged very quickly in 2-3 days with money paid straight to your bank account.
• Hassle-free: No other security or credit checks are required nor do you need to submit an accounts or extra financial data (though if you trade as a limited company, Personal Guarantees from the Directors may be required)
• Fixed costs: you know at the outset what you have to repay and there are no other charges
• Flexible repayment: if you use the money to do some refurbishments that mean your business is closed for a period and you have no credit card receipts and so make no repayments - no problem - doing work like this will likely lead to increased revenues when you reopen so you can repay more then

No matter what your business, you can avail of this cash advance facility. Some of the more popular businesses currently using it include:

• Restaurants
• Hotels
• Bars/Pubs/Clubs
• Hairdressers
• Florists
• Retail shops
• Dry Cleaners
• Pharmacists
• Garden Centres
• Butchers/Fishmongers
• Vets
• Doctors/Dentists
• Off Licenses
• Builders' Merchants

At Choice Loans we think this is a great product - and with 80% of clients who take it renewing their facility clearly they like it too - so we are please to be able to offer it a part of our innovative approach to business finance. This business cash advance can help businesses with limited security options get finance (especially those in leased premises) and can also help those in seasonal sectors smooth the peaks and troughs. To find out more or to apply please complete our Merchant Cash Advance enquiry form here call us on 0845 1260350 with any questions.