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: