Implications of Non Payment
Lenders follow their own principles and policies regarding fees and interest if you don’t pay on time. While most of them will contact you by phone or letter to rearrange payment, remember that non-payment can lead to extra charges and increased interest rate which eventually affects your credit score. It’s important that you read the lender’s website’s charges section before finalising the loan.
Lenders usually contact you by phone, email or letter to arrange payment as non-payment can lead to charges and higher interest rates affecting your credit score. There is the possibility of your debt being passed on to a collection agency and consequent further charges with continued non-payment.
Make sure you contact your lender well before your repayment date if you plan to renew your loan. You will most probably be charged the same rate of interest and fees for the next month on the entire loan amount. The loan renewal/extension is automatic and leads to more interest and charges to your account in the event of a non-payment.
How Much Funding Can My Business Get?
With a merchant cash advance you can access anywhere between £5,000 - £500,000 in unsecured business funding.
The amount you are granted is dependent upon how much revenue your business generates in card sales. This is to ensure that your business only ever borrows what it can comfortably afford to repay. Quite simply, the better your business’ performance, the larger the amount you are able to obtain.
Will My Business Qualify?
The criteria to qualify for a merchant cash advance is simple:
- Your business must be registered and trading in the UK 2. Your business will need to have been running for 6 months minimum 3. You need to generate a monthly average of £5,000 per month in card sales to qualify There is no need to prepare a business plan, or provide any assets as collateral to obtain cash advance funding.
When Will My Business Receive The Funding?
You can receive approval within just 10 minutes, and have the funding transferred direct to your business’ account within as little as 24 hours.
How Do Repayments Work?
Repayments for a cash advance are always flexible and never fixed. You pay back using a small percentage of your future customer card sales. Because repayments are taken as a percentage, instead of a fixed figure, the amount you repay is always in sync with your business’ performance. If you make less one day, the amount you repay is also suitably smaller. The percentage that you pay back is always pre-agreed directly with the lender before any funding is transferred, so you won’t encounter any nasty surprises. Better still, you get to keep 100% of the revenue your business generates through cash sales.
Does It Matter If I Have Bad Credit?
No. Approval is subject to your business’ performance, not just your credit history. Providing that your business generates a minimum monthly average of £5,000 per month in customer card sales, you can still qualify with a poor credit score.
Will I Need To Secure Funding Against My Business’ Assets?
No. A merchant cash advance is an unsecured means of business funding, so you don’t need to provide any assets as collateral to qualify. It’s perfect for smaller business’ that generate a good volume of monthly card transactions but have limited valuable assets.
Will You Perform A Credit Check On Me?
In order to prevent fraudulent activity all applicants will undergo a ‘soft’ credit check as part of the approval procedure. This allows the lender to check your credit history and verify your identity, but a record of this check will not be left visible for other organisations to see. Providing that you pass the initial ‘soft’ check you may be subject to a ‘Hard Check’ later in the process. This will be visible to other financial organisations that view your credit history, however it is important to note that merchant cash advances are available to an extensive range of credit histories. As approval is subject to your business’ performance, less focus is given to your credit score, meaning that even business’ with very poor credit can qualify.
What Documentation Will I Need To Provide?
As an alternative business funding solution, merchant cash advances are designed to be simple and straightforward. So, when it comes to providing documentation, we like to keep it hassle-free. You will need to provide the following:
- 4 months’ worth of card statements * 3 months’ worth of business bank statements If you are applying to receive funding of £75,000 or above, you may also be required to provide your business’ end of year accounts for the most recent year.