The goal of any business is to bring good quality and attractive products or services to market, provide stellar service levels to clients, and ultimately develop a brand that people buy into.
Getting to this position is not without its challenges – particularly when it comes to managing your finances.
Small businesses without large reserves of cash to fall back on during leaner months may feel the pinch more than blue-chip businesses. But regardless of the nature of your business or length of trading, there are times when a cash injection will lift the pressure.
However, borrowing money is not without its complications. Getting a bank loan isn’t as simple as you may think, with banks tightening the reigns on small business loan approvals over the last decade. Neither is borrowing money from friends or family. So, what options do small business owners have? Alternative finance is one of them.
What is alternative finance?
Simply put, alternative finance is any kind of finance you’re able to arrange through non-traditional means – that usually means not through a traditional bank.
Alternative finance can include things like equity crowdfunding, invoice financing, peer-to-peer lending and – and increasingly popular option for businesses that take regular debit and credit card payments – a Merchant Cash Advance. This is ideal for businesses that take card payments, as you pay back the loan in small amounts every day, according to the amount of credit/debit card payments you’ve taken.
4 big benefits of a Merchant Cash Advance
1. They are quick and simple to obtain
Banks can refuse loans for a multitude of reasons. This process is only exacerbated by ‘computer says no’ automated approvals systems that can turn you down with little explanation or guidance.
This is not the case for business owners seeking a Merchant Cash Advance. It’s not uncommon to fill out an application form and get a decision within 48 hours.
This is far quicker than applying for a bank loan, taking hours or even days to fill out forms and maybe attending a meeting or two – and you still might walk away empty handed.
2. You receive the money fast
If you’re applying for a traditional bank loan, even if you’re approved it can still take weeks for the funds to actually hit your bank account. With a Merchant Cash Advance, you may get the money within just a few days – an attribute that’s very attractive to business owners.
Whether you’re looking to rent new premises, buy new stock or equipment, invest in advertising campaigns, or reinvent your brand, this quick access to additional finance can really help to get the ball rolling.
3. It won’t affect your credit rating
Maintaining a good credit rating is important. It can affect everything from getting a mortgage to buying a car or applying for a credit card, plus a whole host of other situations. Bank loans and other traditional means of business finance all affect your credit rating, which could have an impact on other areas of life.
The good thing about a Merchant Cash Advance, though, is that it doesn’t affect your credit rating in any way. Why? Because you’re not taking out credit but simply ‘selling’ your credit card sales for capital. There are no monthly repayments and you don’t even need to have a stunning credit score to apply for a cash advance.
4. They can be less stressful
Being a business owner can be very rewarding. It can also be very stressful, especially when times are tight. Getting a Merchant Cash Advance can alleviate some of the day-to-day stress of being a business owner, allowing you to focus on growing the business. Nor are you left worrying about making a big loan payment every month. You simply pay back a small amount every working day. The precise amount will fluctuate depending on how much is processed through the card terminal. On a slow day you will pay less and on a busier day it will be more, so it flexes to suit the performance of your business every day.
If you’re looking for alternative finance to fund your business ambitions, United Merchant Services can help. We’ve partnered with Capify, a leading provider of Merchant Cash Advances, for over eight years. Capify can provide alternative business finance from £3,500 to more than £150,000.
As long as your business has been trading for more than six months, and you are able to meet pay-back terms from six to 12 months, you could have the funding within days of applying. Don’t just dream of having the finance to achieve your business ambitions, make it happen today with a Merchant Cash Advance from Capify!
Learn more about Capify’s Merchant Cash Advance options.