How does a Business Cash Advance work?

How does a Business Cash Advance work? image


A business cash advance is an alternative finance product that’s aimed at small businesses such as retail, restaurants and pubs that have strong monthly credit card revenue. Unlike traditional loans, it works along side your business card sales performance so there’s no fixed term – you only pay back as you earn.

Here’s how it works

1. The provider will give your business the funds you need to help with cash-flow, stock purchase, refurbishment and any other business needs.

2. The provider deducts an agreed percentage from your every day credit and debit card sale transactions. The percentage can vary based on your business and performance but expect to payback at least 10% from all sales. For example, if your daily card takings are £1000, you only pay £100 back to the provider. Remember, you keep 100% of all cash income.

3. There’s no fixed term with this finance product. It works with your business performance, so in slow times you pay back less and in busy times you pay back more. You continue to pay back until the loan in fully repaid and additional top up advances are available to your business.

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