Businesses are now looking to raise extra capital by exploring methods other than traditional bank loans.
Since the financial crisis in 2008, traditional lending routes for independent businesses have dwindled. Figures collected by the Bank of England show that in December 2015, net lending to small and medium enterprises suffered a decrease of £300 million.
As independent businesses are encountering difficulties when seeking out traditional business finance, other methods of raising capital have increased in popularity. Companies are now relying on alternative methods of boosting cash flow, such as crowdfunding, pension-led loans, invoice discounting and business cash advances.
Although the alternative market is full of varied options for funding, a business cash advance is becoming a fast-growing and popular option due to the speed of receiving funds and flexible repayments. Advances are given to businesses who accept card payments, usually equivalent to one month’s card turnover, and repayments are made by automatically deducting an agreed percentage daily. This means that businesses will never need to struggle to find a fixed repayment in quieter months, or incur late payment fees.
Quick Capital, Handepay’s business funding partner, can offer Handepay customers a cash advance of between £500 and £300,000. The application takes minutes and funds can be with customers within 72 hours.
As seen in The Times, Quick Capital provides much needed funds to allow businesses to grow. The money can be used for anything, such as purchasing additional stock, improving cash flow, advertising costs or to pay for premises refurbishments.
There are many benefits to choosing a cash advance over a business loan. There is no need to provide a business plan, your home and business assets are safe, as it’s unsecured finance. Cash advances are typically short term and take around 6 to 7 months to repay, with no penalties for early repayment. The percentage repaid each day is discussed and agreed at the beginning, and repayments move up and down in line with card turnover.
If you are interested in growing your business with a cash advance, take a look at how much you could raise from Quick Capital.