What sectors use Cash Advances the most?

What sectors use Cash Advances the most?

July 5, 2017

No matter how big or small your business may be, an essential ingredient for success and long-term sustainability has always been accessing key funds. Thanks to the ever-developing presence of the Alternative Finance Industry, the number of business finance products on offer to SMEs has grown significantly, paving the way for very exciting and unique products. One such finance product that’s proving its worth among many UK sectors includes Merchant Cash Advance. But, of all the potential beneficiaries of a well-placed Merchant Cash Advance solution, which sectors use this type of funding the most and why?

What sectors use Cash Advances the most?

Fast, flexible and diverse in its usability, Merchant Cash Advance continues to grow in popularity, becoming a staple among many UK sectors. Yet, due to the way in which this unique product functions some sectors may benefit more from its use than others. One reason for this is that Merchant Cash Advance works by utilising credit and debit card sales. As such, businesses that are able to accept card payments, whether through an in-store chip & pin terminal or online, are eligible. But of all the sectors that benefit from Merchant Cash Advance, there are 5 that utilise this type of finance the most: Retail, Catering, Private Health Care, Beauty and Leisure. Now to answer the question of why.

Why is Merchant Cash Advance so popular?

Because Merchant Cash Advance works with your card sales, any business that regularly accepts card payments could be eligible for an advance, depending on their individual circumstances. However, the traits that make this product so useful is that it’s fast, flexible and can be applied to support key areas of your business. As such, Merchant Cash Advance is able to offer SME businesses many benefits that could further enhance growth and long-term sustainability. But what makes this product so favourable among these specific sectors?

At the heart of these sectors lies the customer. Although cash is still a popular means of payment, more and more customers are choosing to switch to card and digital methods when paying for goods and services and, because the modern customer often finds themselves strapped for time, contactless technology is revolutionising the goods and services landscape. As such, catering towards this type of customer is only logical and makes these businesses ideal candidates for a Merchant Cash Advance.

With the mass availability of EPOS technology, these sectors can accept digital payments and actively review their stock levels with ease. In catering, where ensuring adequate stock levels is crucial in providing the high-quality services customers have come to expect, a Merchant Cash Advance can be of great benefit. Periodically, you may receive some very exciting offers from your suppliers, however, these deals may only be available for a limited time. As such, rather than causing undue damage to your capital, a Merchant Cash Advance could offer you the sums necessary to take advantage of these offers. This is made possible because, by choosing this particular product, you could receive both a decision and the sum requested in as little as 48 hours of applying.

In addition, the way in which a Merchant Cash Advance can be repaid may prove very advantageous for businesses operating in these sectors. Because the product’s repayment scheme works using Flexible Monthly Repayments that utilise your credit and debit card transactions, lenders are able to take an agreed percentage from each card-based transaction. So, for businesses that regularly accept high levels of card payments each month, it could be said that your customers are actively repaying the lender on your behalf. As such, most businesses trading in these sectors tend to repay the product in as little as 6 – 12 months.

Considering a Merchant Cash Advance for your business?

As always, choosing the most appropriate finance product for your business can be confusing. You need to be sure that the product you choose caters towards both your business’ circumstances and unique requirements. Plus, you need to be sure that you’re getting the fairest possible terms and ones that won’t enforce overly restrictive contingencies to the way that your business operates. For any business owner who often finds themselves short of time, the strain placed upon you can become too much to handle alone.

That’s why more and more business owners are choosing to source business finance with Rangewell. With our services and expertise, we can help source the most appropriate finance solution for your business, including Merchant Cash Advance and a diverse array of business loans, all bundled with highly competitive rates to match. So no matter what your goals are, Rangewell is extending a helping hand and leading the way to a brighter tomorrow.

Our values are simple – We’re on your side.

At Rangewell, our services are clear and transparent. We support a wide range of SME businesses of every shape and size, for finding every type of finance. Follow us on Twitter and LinkedIn for business tips and tricks, and feel free to call us on 0203 637 2340 if you’d like to chat about what we can do for you.


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David Harrison

David Harrison

Content writer