Cash Advances - The ideal solution for SMEs

By definition, the small and medium size enterprise environment in the UK has always been a challenging one within which to secure financing. SME companies and those requiring SME finance may find the challenge is largely due to the failure of a strict definition that encompasses the size of their business and the annual turnover. In order to secure finance, any small enterprise or medium sized business will be benchmarked against similar types of businesses.

As the current SME definition in the UK is not clear, this could have a negative impact on who to ask for business funding as every bank, VC, investor, lender or cash advance organization may have a different set of criteria that it applies to SMEs, and without a clear definition SME financing will struggle to benefit from the various alternative financing products available on the market.

What is an SME?

An SME in the UK is defined by HMRC as a business that does not employ more than 500 hundred staff and has an annual turnover that is less than £100 Million. The problem is that the UK government does not share this definition and adopts a different approach in determining what SME stands for. Contrastingly the he definition used by the department for business defines SMEs as any company that employs less than 250 employees.

Furthermore, any business in the UK that employs less than 50 people and has a turnover of less than £6.5 million is defined by Companies House as being small, and by the same definition of SME any business in the UK with less than 250 staff and a turnover of under £25.9 Million will be considered to be a business of medium size.

With so many definitions of SME available, SME funding could be an issue faced by any UK business with between 50 and 500 staff turning over between £6 million and £50million, and it’s for this reason a merchant cash advance could be the ideal financing solution for UK SMEs.

A business cash advance is the ideal solution for SME finance as the number of staff is irrelevant when it comes to making the funding decision. What is relevant however is that eligibility is dependent on the SME that is looking for finance turning over a minimum of £5000 through a debit or credit card terminal.

There are a number of further advantages of a business cash advance that make this type of SME financing attractive and in line with what SME business owners may be looking for:

  1. An SME applying for a business cash advance can do so online and minutes.
  2. Unsecured funding of between £5000 and £200,000 can be raised by SMEs transacting through debit and credit card terminals.
  3. Small and medium sized businesses can benefit from a finance product with no APR or fixed monthly payments.
  4. Nearly 90% of businesses meeting the SME definition are approved for a business cash advance.
  5. Unlike many other loan products on the market SMEs do not need security or a business plan when applying for a cash advance.
  6. Once Financing is approved the SME will receive a lump sum directly into the business bank account.
  7. A cash advance is an attractive finance option for SMEs as they only pay back the advance, when they are paid by their customers so repayments mirror sales and do not put pressure on the cash flow of the business.
  8. An SME must have been trading in the UK for at least 6 months to eligible for a business cash advance.

Do I Qualify?

Qualification for our business cash advances is simple: Contact our customer services team to see if you are eligible.

  • In business for at least 12 months
  • Average monthly credit and debit card turnover of at least £5,000

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Business Cash Advance:

The flexible alternative to bank loans

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