Working Capital Financing
How much capital does your business need?
Less than £ 5,000£ 5,000 - £ 15,000£ 15,000 - £ 30,000Most popularMore than £30,000
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What is Working Capital?
This working capital is the cash available to the business that enables it to run its day to day affairs, it is sometimes referred to as operating capital. The true definition of working capital is typically the total amount of assets a business has minus the total amount of liabilities, and this formula is what most financial services organisations will use to determine working capital loan requirements. This formula will also influence any working capital loan terms that may be agreed upon
A few advantages of a business cash advance over a working capital loan are as follows:
- Application for a business cash advance takes minutes but application for working capital loans for small business can take some time.
- No security or business plan is required for a business cash advance but businesses seeking quick working capital loans may be required to provide a business plan and security.
- Approval for a business cash advance is usually within 24 hours but owners looking for working capital loans for small business have been known to wait for weeks to get approval.
- To get a working capital loan for a new business is a cumbersome process but 365 business finance have a 90% approval rate.
The flexible alternative to loans
One of the biggest challenges facing smaller business today, is access to working capital. An ever-changing economic environment has meant that businesses must develop and expand to remain competitive but investing in resource and infrastructure can sometimes leave a business exposed and cash flow tight day to day.
There are different kinds of working capital loans for small business, and business owners will need to assess the exact financial requirement and ensure that any working capital loan agreement that they enter is flexible and does not put the business under any further financial pressure. Unexpected costs such as tax bills, vehicle or machinery failure or recruitment bills can impact on the cash available and negatively affect the working capital position of the business, in these circumstances a loan or cash advance can be hugely valuable.
Like most loans, working capital loan interest rates can be quite high and so it’s important that small business owners investigate thoroughly, the various types of working capital loans on the market.
A good alternative to a working capital business loan is a business cash advance, as it approval and funding times are as quick as working capital loans, but the repayment schedule is far more flexible as the amount funded is only prepaid when the business is paid by its customers. A merchant cash advance mirrors the cash flow of business, it has no APRs or fixed terms, and repayments mirror the transactional activity going through a business debit and credit card machines. If a business is having a good month more is paid back, and if a business is having a slower month the advance repayment is less. A small business need not be concerned with high fixed loan repayments at times when cash is tight.
Apply in Minutes
Use future credit and debit card sales to raise a business cash advance today.
Get your cash advance in days
Receive a lump sum directly into your bank account.
Watch your business grow
Repay a small portion of your monthly credit/debit card transactions.
How it works with 365:
A business that processes £10,000 per month in credit and debit card sales, is eligible to receive £10,000 in an unsecured business cash advance, with no APR or fixed-terms, and repayments based on your monthly card sales.
Only repay us when your customers pay you!
Working Capital for growth
Does your business need a traditional loan alternative?
A business cash advance offers the following benefits to businesses searching for working capital loans due to the fact they have bad credit.
Agree one, upfront all-inclusive cost that never changes.
- Funding in days
- One simple all-inclusive cost
- No fixed term or fixed monthly payments
- No admin fees
- No APRs
- A dedicated relationship manager
- A simple requirement that the business has been trading for 6 months
- A requirement that the business transacts £5000 through its credit and debit card terminal.
Why Do I Need a Working Capital Loan?
Seasonal fluctuations and temporary dips in incoming revenue may require that the business seek out funding to help it overcome a tight period. It is important that in these circumstances flexible, fast finance is available that does not put the business under any further financial strain.
High interest rates and longer-term loans that have inflexible repayment terms may at first seem like a positive solution, but on closer inspection, its products like these that can inhibit the growth and performance of a business by putting even further pressure and strain on cash flow.
Predictable borrowing is something offered by a working capital loan, the cost of borrowing should scale with the amount of capital drawn down from the loan. If the business has no requirement for finance in a given month it need not draw on the capital available and in so doing would not incur further interest charges. Borrowing costs are therefore kept to a minimum and there is no unnecessary additional expense to the business. A business can however operate with confidence know that a line of credit is available should they require it.
Am I eligible?
- Your business must be trading for a minimum of 6 months;
- Minimum monthly credit and/or debit card sales of £5,000.
A merchant cash advance program for your business
Determining the correct funding product or source of finance is vitally important if the business is to remain profitable, sustainable and in good health. Business owners should make sure they do a thorough investigation of the products available as often loans available from the mainstream lenders and high street banks, on the face of it seem like a good idea but they can turn out to be inhibitors to the success of a business. Paying for the capital you need rather than the capital available is a far more prudent approach and working capital loans offer this alternative. A merchant cash advance that considers the businesses sales when calculating the flexible monthly repayment, could also be a preferred option to a small growing business.
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Cash Advances: questions and answers
Answers to a few commonly asked Merchant Cash Advance questions.
How to apply for a business cash advance
A few simple steps, such as a Business cash advance, could be the perfect way to secure capital funding for your business.
How do you apply for a Merchant Cash Advance?
There are quick, easy and safe business finance solutions out there to take the pressure off your cash flow, such as an unsecured merchant cash advance.
Frequently Asked Questions View All
Our merchant cash advances are designed as a quick and easy business funding solution, for small businesses looking to raise between £5,000 and £200,000 for your business. Unlike a regular loan, there are no fixed weekly or monthly payments. You simply pay back a small percentage of your credit and debit card sales, which means that you only pay us back when you sell to your customers.
So if you’re having a quiet month, your repayments automatically reduce, which helps you manage your cash flow.
There is an all-inclusive cost that gets added to the advance, so there are no interest charges, APR’s or late fees.
- Apply in minutes
- 90% approval rate
- Approval within 24 hours
- No security or business plans required
- Flexible repayments based on your card sales
- One simple all inclusive cost, that never changes, agreed upfront
We understand that as business owners and entrepreneurs, your time is important and you need quick answers so that you can focus on your core business.
That’s why we've designed our business cash advances funding process to be fast, simple and hassle-free. We don’t require business plans or security for our alternative cash finance, and your advance will be approved in under 24 hours. The processing of the repayments happens automatically so there is no disruption to your business.
Best of all, it’s a cash flow friendly solution for your business designed to match your business performance, so you pay us back when you sell to your customers.
Unlike regular bank loans, there are no fixed weekly or monthly repayments on a merchant cash advance with 365. You simply pay back a small percentage of your credit and debit card sales, which means that you only pay us back when you sell to your customers.
So when sales are down, the repayment amount is also low which helps you manage your cash flow, especially during quiet months. Instead of charging you interest on the advance based on the length of time it is outstanding, there is a single, all-inclusive cost added to the advance, so there are no APR’s or late fees.
Best of all, the application process is much simpler than for a regular bank loan, and your advance will be approved in 24 hours and you can have the funds in your bank account within days.
See the comparison between our unsecured business cash advances and a traditional bank loan, here.
Click the “Get a quote” button for a no-obligation quote on a merchant cash advance.
Alternatively you can email us oninfo@365businessfinance.co.ukor call0207 1000 365to speak with one of our representatives.
- You have been in business for at least 12 months
- Your average credit and/or debit cards sales during this period are at least £5,000 per month.
Alternatively you can email us oninfo@365businessfinance.co.ukor call0207 1000 365to speak with one of our representatives.
Our cash advances range from a minimum of £5,000 up to a maximum of £200,000, in unsecured capital funding.
Our maximum advance size depends on your average monthly credit and/or debit card sales. Typically we can offer up to 100% of your monthly card takings. Should you require more, please call our office for a bespoke quote to match your needs.
Unlike a regular bank loan, there are no interest charges or APR’s on an unsecured merchant cash advance with 365. You pay a single, all-inclusive cost, which gets added to the cash advance and remains the same irrespective of the length of time it takes to repay.
There are no application fees, admin charges or hidden extras.
Contact our customer service team for a no-obligation quote on our quick business loans.
You repay a small, agreed portion of your credit and debit card sales, which then reduces the balance outstanding on one of our.
So if you are having a quiet month, the repayment amount is also low which helps you manage your cash flow. There is no term on the product, so there are no additional charges if the advance takes longer than expected to repay.
You simply pay back a small, pre-agreed portion of your credit and debit card sales, so the exact length of time it takes to pay back a merchant cash advance depends on when you make sales to your customers. There are no fixed weekly or monthly payments.
No security is required for our unsecured merchant cash advances. To find out more information, readhere.
Yes, we provide ongoing cash advances for small to medium UK businesses.
Our merchant cash advances are fully flexible, so you can always apply for additional funding elsewhere.
We partner with a number of financial brokers and introducers to help their clients secure unsecured funding for their businesses, through an unsecured business cash advance.
We offer training to help you understand our products and gain access to co-branded materials, a dedicated broker contact and a competitive commission scheme.
So contact us on brokers@365businessfinance.co.uk or 0207 1000 365 to find out more about our broker referral scheme.
