Many small to medium sized businesses, particularly in dentistry, have needed extra support regarding cashflow to keep their doors from closing permanently during the pandemic.
Small businesses are increasingly looking to 365 Business Finance for flexible finance to help them, with the average merchant cash advance being slightly higher now than in previous years, at £20k, up 10 per cent* in the last 12 months.
In addition, 365 Business Finance – a London-based lender – has reported that they are now getting more merchant cash advance enquiries from businesses that have already taken government loans via the bounce back loan scheme (BBLS) and coronavirus business interruption loan scheme (CBILS).
With a merchant cash advance, funding between £5k and £200k is still available even if a business has accessed BBLS or CBILS government support. The benefits include no APRs or fixed monthly payments.
Managing director at 365 Business Finance, Andrew Raphaely, said, “We are finding that numerous small to medium sized businesses are taking out merchant cash advances with us mainly to keep their businesses stable during the Covid-19 pandemic.
“Lots of businesses have been telling us that they have been using the advances in recent months more for keeping on top of cashflow and working capital, whereas previously they were mostly being used for the refurbishment of premises and business expansions.
“Although we remain very popular with pubs and restaurants, and various hospitality clientele, we have seen a big increase in enquiries from dentists, the retail sector and online businesses – which makes sense considering the current climate and how lockdowns have impacted the high street and dental practices.
“Our alternative finance is increasingly becoming an attractive option to businesses, as they learn more about how a merchant cash advance works. They only need to make repayments when their customers pay them. The repayments are simply taken as a percentage of debit and credit card sales, which makes a merchant cash advance an easy to manage form of funding.”
To find out how businesses can survive the pandemic in 2021 with the current range of business funding options available to them, read 365 Business Finance’s guide – which examines and compares the government schemes and grants on offer in the UK, as well as detailing how a merchant cash advance is an alternative or additional finance option for dental practices.
*Latest data from 365 Business Finance, as of January 26, 2021.