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  • 1
    Apr

Small Businesses of UK Favouring Alternative Lenders

After years of recession, it appears that the UK’s economy is recovering. Many economists agree that the economic landscape is improving and this can be seen by the increase in house prices to the highest they have been since 2007, just before the credit crunch. It is also a good time for SME’s. Businesses which have made it through the recession are likely to be leaner and more organised than before. New businesses are also starting up, taking advantage of the internet to reach a large customer base but operating with very low overheads. However, despite these positive signs there is one area of recovery which is taking time; banks lending money to small and medium sized businesses.

It can be very hard for businesses to borrow money via a traditional bank loan as banks are so heavily regulated, and lending is closely scrutinised. Small and medium sized businesses often do not have the necessary collateral to secure a loan. If businesses wish to change and grow, and they need cash to do it, it can be difficult to obtain. However, it’s not all bad news for these businesses as there are some alternatives to traditional bank loans, and they are becoming more and more popular as businesses look to other means of obtaining cash and credit.

One of the easiest and simplest methods of obtaining cash is through a merchant cash advance. Rather than a loan in the traditional sense, as the name would suggest, cash is advanced in lieu of future credit and debit card sales. It is an elegant solution to the problem of regulating and controlling small business loans, and burdening these businesses with onerous conditions and requirements to obtain those loans. The cash advance is based on monthly card sales, and this is repaid as an agreed percentage of all future card sales until the advance is paid back. The advance is quick and easy to apply for, and the funds could be ready to spend as soon as 72 hours after the application is made and accepted.

There are many benefits to this type of scheme that make it desirable to SME owners. The repayments are flexible, and are based entirely on sales which means that you will never have to pay back more than can be afforded. It also means that during bumper sales, more will be paid back over a shorter time. Another advantage is the application process itself. There is no need to jump through hoops in order to obtain a cash advance. Unlike a bank loan, a detailed business plan is not needed nor will you be subject to an in depth examination of your businesses finances. In fact, all the information asked for during the application process is straight forward and easily obtainable. If you are a small or medium business owner looking to grab hold of the rise in the economy why not join with the large numbers of other UK businesses, apply now and start reaping the rewards for your business?

Small and medium business owners preferred merchant cash advance rather than traditional bank loans. Such companies like emerchant cash advance provide this type of loans to UK’s small and medium business. This type of loan is really raise finance for business and also helps to expand it.