It can be difficult to obtain working capital, especially when the funds are required at short notice, or owners are either unable or would prefer not to provide security.
With the restrictions in accessing finance from traditional sources such as the high street banks, the market has seen the emergence of new and innovative ways to raise short term working capital.
One of these, which is probably unknown to many businesses, is quite simply the use of future card payment receivables to secure a business cash advance. With the majority of businesses now accepting card payments, the cash advance is another option available to them and without the need for security or any other commitment by the business.
The way it works is that the advance is based on the volume of card payments taken by the business and repaid out of the future card receivables taken by them via their card machine.
In other words you can have an advance today (up to 1/12th of your annual card turnover) and pay this amount back each month at a percentage of the amount received through the card machine. The product is designed to give businesses a shot in the arm and ultimately help them to unlock their future sales potential.
The cash can be used for any business need, whether that’s working capital, opening additional locations, renovating or refurbishing existing premises, purchasing equipment or additional stock, PAYE, VAT, wages or any other business needs they might have.
Unlike a bank loan there are no upfront fees, no fixed monthly payments, high approval rates and there is a very fast turnaround of up to seven days. The loan can be extended or used again at any time to ensure an on-going source of capital as a business grows.
About the author
Acceptcards have been working with the Forum for over five years to help our members get card acceptance facilities at a much lower cost, helping them save money and increase cash flow. To discuss any aspect of accepting cards in your business, including how to arrange and benefit from a cash advance, call our member helpline now on 0845 130 1722.
In the current economic climate it is proving more and more difficult for a business to obtain working capital. In this article, we look at a new funding option which lets you borrow money against future card payments.