Reason #1- It’s a cash-flow friendly alternative to bank loans
With our advances, repayments are tied to your business’ performance. So while a bank loan demands that you make your monthly or annual repayments regardless of how your business is performing, our Merchant Cash Advances are only repaid when you make sales to your customers (you repay a small percentage of your credit and debit card sales). So you repay less in quiet months, and more in better months, but importantly the total repayment amount remains the same irrespective of the length of time it takes to repay.
Reason #2- Approval rate is much higher than that of bank loans
Your business performance is the main factor in your application rather than your personal credit rating. So while many banks will reject your application based on your own personal credit score, we consider all factors in making a decision. In fact, over 90% of businesses that meet our basic criteria qualify for an advance. For more on how our cash advances differ from traditional bank loans, read here.
Reason #3- Applications and collections are simple
The application process is simple and easy. When making an application, we only require monthly credit card statements, monthly bank statements and a copy of your business lease agreement. A bank loan, however, requires you to provide financial statements, business plans, and tax returns. Collections are also much simpler. The advance is repaid by taking a fixed percentage of your daily credit and/or debit card sales (typically between 5% and 20%). You keep 100% of your cash sales. This is all automatically processed as you make sales to your customers, so there isn’t an extra bill to worry about at the end of the month.
Reason #4- Access to cash is fast
This is particularly important for businesses that have endured an unexpected blow, such as a natural disaster or an unexpected expense. With the minimal amount of paperwork required for an application, the processing of applications is much quicker than that of bank loans. In fact, at 365 Business Finance, we can let you know within 24 hours whether we are able to advance your capital, and you can have your money in days. So, if you need the cash immediately, you’ve got it immediately.
Reason #5- You don’t need security for our business cash advances
Small business owners across the UK are being turned down for bank loans because many owners cannot provide security for bank loans. At 365 Business Finance, we don’t require any security for approval on a cash advance.