• Unsecured business loans do not require security over assets or property.
  These types of loans are great for businesses that do not own many assets
  and need funds quickly.

• A secured business loan is backed up by security, usually an asset that is
  either owned by the business or its directors/ shareholders like a vehicles
  or property. These are suited to businesses who need to borrow more than
  £500,000.

• A Revolving Credit Facility (RCF) gives your business ongoing access to
  a pre-approved credit limit, allowing you to draw down funds whenever
  they’re needed and repay them as cash flow allows.

• Unlike a traditional business loan, you only borrow what you need, when
  you need it. As funds are repaid, they become available to use again,
  making a Revolving Credit Facility an ideal solution for businesses with
  changing cash flow requirements or seasonal trading patterns.

• Whether you’re managing working capital, covering unexpected costs, or
  funding short-term opportunities, a Revolving Credit Facility provides
  flexibility without the need to apply for finance each time.

• Invoice Finance, also known as Invoice Factoring – allows you to receive a pre-agreed percentage of an invoice within 24 hours of raising it, often up to 90% of the invoice. This method of funding lets you access finance for boosting your cash flow or investment purposes, using an often-untapped asset on your balance sheet.

• 1 in 3 business owners have never heard of Invoice Finance. A surprising fact, as it can be a valuable solution for improving cash flow and helping businesses grow with confidence.

• Outstanding invoices represent revenue your business has already earned, yet the funds may not reach your bank account for weeks or even months, restricting cash flow in the meantime.

• A Merchant Cash Advance (MCA) provides businesses with an upfront
  lump sum of capital, which is automatically repaid through a fixed
  percentage of future debit and credit card sales.

• It is a flexible, short-term finance option highly utilized by retail,
  hospitality, and e-commerce sectors.

• Merchant Cash Advances can provide businesses with quick access to
  funds by leveraging future card sales, helping to support cash flow
  without the need for traditional lending structures.

How does Merchant Cash Advances Work?

• Merchant cash advances are often unsecured and repaid within 12
  months, though some providers offer longer terms. The amount of
  funding available is directly related to average monthly card sales, as
  these are the source of repayments. Trading history length can also be a
  factor.

• Repayments are daily and automatic, taken from a portion of the card
  sales. The percentage amount taken from each card payment is typically
  fixed and pre-agreed. This means that the more you sell, the more you
  pay back, and the faster the advance is cleared.

• A merchant cash advance provider will charge you a ‘factor rate’.
  Typically, this is between 1.1 and 1.5. If you agree to a factor rate of 1.15
  and borrow £10,000, you’ll need to pay back £11,500. Below is a
  diagram to illustrate the process.

Features of Merchant Cash Advances:

1. High approval rates: MCAs have one of the highest approval rates of all
business loan types. Approval rates can be as high as 90% for some MCA
lenders compared to 62% for traditional business lending.

2. Speed and ease of approval: MCAs can be a quick, easy way to get
funding for your business. Unlike traditional loans, you can get approved
for an MCA within 24 hours using an online-only application. Funds may
arrive within 1-2 business days.

3. No collateral or personal guarantees required: MCAs don’t require
collateral to be offered, and directors don’t need to make personal

guarantees, removing the personal liability concerns associated with
traditional loans.

4. Ease of application: Unlike traditional lenders, MCA lenders will not
require a business plan to be submitted during an application. Instead,
they look at card sales data via statement PDFs or via open banking
which speeds up the application even more. According to YouLend data,
merchants who use open banking in their MCA application are 60% more
likely to receive an instant approval decision than those who supply bank
statement PDFs.

Benefits of Merchant Cash Advancing:

1. Lower risk of default or damage to your credit rating: As repayments
are automatically taken from your customers’ card payments, there is less
risk of defaulting or incurring late payment fees, which may damage your
credit rating.

2. Proportional repayments: If your business has a slow week with
reduced sales, less of the MCA will be repaid. The dynamic nature of
repayments can provide better cash flow compared to standard loans
which require the same amount each month.

3. More lending available to start-ups: Businesses just 3 months old can
get a merchant cash advance if they are generating card sales. In contrast,
a business that has traded for less than 12 months would typically
struggle to get an unsecured bank loan.

• Working Capital Finance provides funding that helps cover day-to-day
  operating costs, manage seasonal demand, and take advantage of new
  business opportunities without disrupting your cash reserves.

• Whether you’re waiting for customer payments, purchasing stock,
  meeting payroll, or investing in growth, working capital funding can
  provide the financial flexibility your business needs to keep moving
  forward.

• Designed to support businesses of all sizes, working capital solutions can
  be tailored to suit your individual circumstances and trading
  requirements.