Chip & PIN Solutions launches Merchant Fund, a new type of business funding providing SMEs with immediate access to cash to help their businesses grow.
Traditionally UK businesses have been very over reliant on lending from banks, providing nearly 80 per cent of all SME credit in early 2014. Loan and overdraft borrowing by SMEs was also extremely high in 2014 and accounted for around 60 per cent of all SME borrowing.
With this in mind, Chip & PIN Solutions has launched an alternative-financing product for SMEs in the UK. Merchant Fund is a cash advance that provides funding from £2,500 to £500,000. Unlike traditional financing products, Merchant Fund has said goodbye to the standard financing restraints such as penalty charges, late fees and fixed monthly payments.
Typically businesses can apply for funding equivalent to an average of one month of their card sales. So, for example, if you take £2,500 in card transactions, your maximum cash advance would be £2,500. The amount repayable is agreed at the beginning and paid back as a fixed monthly percentage of credit and debit card sales.
Chip & PIN Solutions’ Managing Director said: “As a business owner I understand the importance of maintaining a healthy cash flow and having access to funds when needed. Merchant Fund is a great product as it provides businesses with immediate funding, and there are no limitations on how the money is spent.”
Because the cash advance is directly linked to card takings, businesses will benefit from the certainty that the cash advance is affordable, meaning business owners can concentrate on using the funds to grow their business.
The application process is very quick (cash is available within 10 working days) and businesses that have been trading for three years or more will be auto-approved on advances up to £15,000.
Whilst standard business financing involves credit checks and assets to secure a loan, Merchant Fund brings a breath of fresh air to the process. There are no credit footprints and no security is required.
The SME Finance Monitor investigated the availability of external finance for SMEs in the UK. It found that only 7 out of 10 loan and overdraft applications in the first quarter were approved . With Merchant Fund, 90% of our applications are approved. The only requirement to take advantage of this scheme is that businesses accept a minimum of in the region of £2,500 a month in card sales and have six months of merchant statements.
To apply for a cash advance or for further details about this new product please call us for free on 0800 881 8104.
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