It has become a relatively well-known fact that getting a safe and reasonable loan for your business is not exactly easy. In fact, that would be putting it lightly. It is undoubtedly a minefield of potential problems and something you do not want to be taking risks with – especially when the future of your entire business is on the line. However, do not be put off, there are quick, easy and safe solutions out there to take the pressure off your cash flow, and this article will help to guide you in the right direction.
Q: Am I eligible for a merchant cash advance?
A: A lot of Merchant Cash Advance style loans can be extremely difficult to be eligible for. You have to earn over X, you have to already have X, you have to pay it back by X date… the list goes on. To be eligible for a loan with 365 Business Finance the qualifications are simple: You must have been trading for a minimum of 12 months and you must make at least £3500 in credit or debit card sales each month.
Q: Is there masses of tricky paperwork involved?
A: In short, no! To apply for a business cash advance with 365 you simply need to take a few minutes to fill in their online application form and then following this you will be assigned a loan manager who will help to guide you through the rest of the process.
Q: How will I repay the money if business takes a while to pick up?
A: This exact point is what makes 365 Business Finance one of the fairest loan providers you will come across. For example, say you take out a loan to give your hotel or B&B a make-over, it may involve business slowing down before it comes flooding in to your fresh, new establishment. With this specific type of loan you only pay back an agreed percentage of the credit or debit card sales you make each month. So, if you make less, you pay less. When you take more money, you pay more back and in that way are easily able to re-pay your loan without getting caught short.
Q: How do I know how much I can borrow?
A: The amount you can borrow directly relates to the amount your business takes each month. Generally this can be up to 100% of what you take in credit or debit card payments. The range within which 365 Business Finance usually offer is £5000 to £100,000. If you are looking to borrow more than this it is still definitely worth calling up and enquiring, as it may be possible that you can qualify for a personalized, bespoke quote.
Q: Could I not simply get a bank loan from a high-street brand that I already know?
A: There is nothing to stop you from applying to take out a loan with a bank that you may already have a relationship with. However, this may become a problem when they are expecting a fixed monthly or weekly re-payment from you. As we have covered in this article, the benefit of applying for a Business Cash Advance instead is to alleviate the worry of not being able to make repayments. You pay, but only when you earn.
Another point to add to this is the speed at which your application is processed resulting in you receiving your money. When you apply with 365 Business Finance, your application will be approved within 24 hours and the money should be in your account within the next few days. This is, of course, much faster than any regular bank could process a loan applications. When I last checked, it took me a full two weeks just to get an appointment at a high-street bank to discuss a possible loan…