The Client:
The client owns a bar and restaurant and has been trading as a Limited Company for the past 8 months, regularly turning over between £40-50,000 per month.
The Scenario:
The client was keen to expand and improve their premises, especially the outside dining area. Most lenders require access to the latest filed accounts, which meant a minimum trading history of one year, however this can vary, even with a healthy turnover.
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The Solution:
The client understood his options would be limited in consequence from his trading history. Revenue based loans in the form of a Merchant Cash Advance, lend against a company’s debit or credit card revenue (as well as via third parties like Just Eat and Deliveroo). The client was offered a loan of £39,000 a few days after applying.
Summary:
Instead of monthly, weekly, or daily repayments the lender will take a fixed percentage of the card revenue until the loan is paid back. Since the loan shapes around the business revenue, the repayments will also drop proportionately during slower trading periods.
Merchant cash or business advances are unsecured, incredibly flexible and require very little by way of paperwork in the application process. There are lenders that would consider applications from companies that have only been trading for 6 months.
Funding is quick and a guaranteed top up along with a renewal offer if a company keeps up with the repayments.
If you have any questions about merchant cash advances &/or want to receive a free quotation, please call 03303 112 646 today. You can also fill in this short online form to get started. Our team of commercial finance experts will get back to you straight away.