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Business Cash Advance - What is it?

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Borrow between £2,500 and £300,000 and choose to spread the cost of your loan over 4 - 18 Months with easy to manage instalments.
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Business Cash Advance - What is it?

If you’ve been looking for financing options for your business, you may have come across the term “business cash advance”. What is a business cash advance? Is it a loan? And if not, where does the money come from? What is the difference between loans, cash advances and factoring? Keep reading to learn all about business cash advances, what they are, how to get them, etc.

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What Is A Business Cash Advance?

How Much Can You Get With A Business Cash Advance?

How Do Business Cash Advances Work?

This flexibility can make a massive difference for a small business that is just starting out, is struggling to stay afloat, or simply does not have a consistent income. There are numerous business niches that have better seasons and leaner ones, so this kind of financing allows them to pay the money off at a steady pace, that they can afford.

What Can You Use Your Business Cash Advance For?

Are There Any Conditions For A Business Cash Advance?

Like with any other financing option, there are some conditions you need to meet in order to be approved:

  1. First of all, you need to have a business where your customers pay with credit cards to the tune of £3,500 per month, minimum.

  2. Second, you need to provide trading statements for the last twelve months, at least.

  3. Then, you need to use a Process Data Quickly Terminal (or PDQ) for payments through cards (credit or debit). You might be asked to change processors.

As you can see, it’s not difficult to get an advance – certainly easier than a regular loan. While a credit check is not needed, the company might ask for rent payments and such, in order to ensure security. But even so, the necessary documents are fewer than for an unsecured business loan from a bank, for example.

How Can You Get A Business Cash Advance?

In conclusion, a business cash advance can be an excellent financing option for your business, if you need money fast or you’re looking for a source of money for an investment. However, keep in mind that this cannot be your primary source of income or a long-term financing option for your business. The fees are too high for that to be sustainable, which is why this is better reserved for an emergency or an occasional thing. Read more about these advances at the government page, at Gov.uk.

What business niches use business cash advances?
- The retail industry
- The hospitality industry
- The automotive service industry
- The restaurant industry
- The beauty industry
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