Roughly speaking, there are two types of cash advance providers: 1) finance companies open to any eligible, registered business, and 2) card payment companies that offer cash advances as an additional extra for using their services.
They all have this in common:
- You pay one flat fee for the advance and no interest, additional fees or early repayment charges.
- The repayment of the advance amount + added fee is made through a fixed percentage deducted from your future card takings. Pretty fair for those with fluctuating sales, as you only pay when you earn; when you have a slow month, you pay little. Sell a lot and you pay more.
- You do not repay through cash earnings.
Let’s look at the ten best cash advance providers for small businesses in the UK. We’ve identified three card payment providers (1-3 below) and seven finance specialists (4-10 below) offering cash advances to businesses with a minimum monthly card turnover of £500-£5,000. Others tend to require a higher card turnover from merchants.