Funding for small businesses is incredibly difficult to attain, especially if you are in the initial years of operating.
Traditional bank loans are now more difficult to attain than ever before as the UK’s biggest lenders see small businesses as a risk they no longer have to take. They deal with larger companies who offer a simpler return on their investment. So what can small businesses do to find funding in order to expand their operations and take their company to the next level?
Alternative lending has become the most popular answer to this question. The UK now has one of the largest collections of independent lenders offering a wide spread of funding options to suit a huge number of different industries in the early years of business.
One of the most popular of these choices for businesses that process a large amount of credit card transactions each month; including the hospitality and retail industries is merchant cash advances.
But why are merchant cash advances so popular?
There can be any of a number of reasons that a small business turns to merchant cash advances for funding:
High Approval Rates
Very few businesses are turned away from a merchant cash advance. Lenders typically require proof of how much a company takes in credit card transactions each month to determine how much they are willing to lend them and more often than not these applications are successful because the amount being lent is sensible and can be paid back easily through a percentage of each months cad transactions.
Fast funding after approval
After a company has been approved for a merchant cash advance they can see funds deposited into their account within 24 hours in some cases, and in other cases it takes just a few days. Traditional loans are a long-winded process that can take weeks or even months to secure funding, and in that time an investment opportunity may have passed.
Ensure you compare merchant cash advances online to help you find a lender that suits your company.