Meet James: James is a restaurateur and a good one at that. He has a fairly busy trade; he works hard and gets involved wherever he can. But although he ticks all the boxes, he finds it hard and frustrating at times. Particularly when it comes to getting the business loan he needs for ad hoc opportunities. Like the time a pop-up festival temporarily opened on a busy strip nearby and he didn’t have the capital to fit out a food truck in time. Or the time his supplier offered him a brilliant deal if he paid upfront for some specialized produce. Unfortunately, James had to pass on these opportunities because he just didn’t have the funds available. What he didn’t realize was that he had options other than a traditional business loan: A merchant cash advance is a finance product created for retailers, just like James, in mind. This would have given his business immediate cash-flow without the prohibitive qualification criteria typical of traditional business loans.
If you recognize yourself in James, take a look at…
5 reasons why a Merchant Financing is a sensible loan alternative for a retailer like you:
This isn’t a business loan
James thought merchant financing was just like a normal bank loan. But actually, merchant financing isn’t a business loan at all, rather it’s an advance which is lent against future credit/debit card turnover. This allows a lot more flexibility than traditional business loans. This is referred to as the “holdback” or retrieval rate. This may be anywhere from 5% to 20%, based on the size of the advance, your business’s credit card sales and the repayment period. Depending on the amount borrowed, terms can be anywhere between 7 – 18 months. Also, the amount you will be eligible for is determined against the past 3 – 6 months of credit card transactions. Once calculated you can qualify for anything between 80 – 100% of your average credit/debit card turnover. This means that if your business has active credit/debit card activity over 10K every month, you are well on your way to qualifying.
You pay your way
Our restaurateur James needs a lender who can provide flexible repayment options that work in line with his fluctuating seasonal turnover. A merchant cash advance is perfect for retailers like him because repayments are not fixed and work in line with turnover. Furthermore, we understand that no two businesses are alike. The beauty of this type of merchant finance is that it can be tailored to your business’s needs. With this in mind, we also provide two options for fund repayments:
- Split Processing is when repayments are directed via your EFTPOS. This means that every time a customer pays with a credit or debit card, a small-agreed percentage of this transaction goes to Beyond Merchant Capital while the balance moves into your bank account. This continues until the full amount is paid off. So if you don’t trade, you don’t pay. But when business improves, you repay your merchant cash advance faster.
- Alternatively, a daily debit order offers the chance to know exactly how much you are paying back on a daily basis (percentages calculated fortnightly), rather than paying a large single payment at month-end. Our accomplished credit team will take you through both of these options and carefully advise which one best suits your operation.
Get that much more
As an entrepreneur, James is looking for a lender who sees him as a person and not a bottom line. We are not in the pay-n-go business. Rather we strive for a pay-n-stay approach so try and provide ongoing opportunities to better your business. So, once you have paid back 60% of your facility, you immediately qualify for a re-advance. Plus, because we are already good friends, we can then swiftly review your file (add in a few updated documents) and get you cash-in-hand even quicker than we did before. plus, should you have not taken the full amount you originally qualified for, you can also ‘top up’ your cash advance at any point in your funding cycle.
You’re the boss
The last time James applied for a bank business loan, they scrutinized his every decision. This was annoying to a man who had built his business from the ground up. At Beyond Merchant Capital, we understand that no one knows your business the way you do. So while we prefer that the funds are used for growth-enhancing opportunities, we give you carte blanche on what you actually invest in. This is really different to traditional banking institutions that are incredibly prescriptive when it comes to fund allocation.
Expect quick turnaround times
We work on a scale of 1 – fast! One of the reasons we enjoy such a high return of applicants is because it is just so ridiculously easy to apply! Within mere minutes of a quick online application, you will receive an email advising of any outstanding documentation (don’t worry – we don’t need that much). Then, within a few hours, a skilled Beyond Merchant Capital consultant will be in touch to get your application going. Rest assured it will be wrapped up quickly as we pride ourselves on turnaround times as little as 24 hours.
Get in touch
So to James the restaurateur, and all of you other hard working retailers out there: Please introduce yourself and let us take you through this highly respected alternative to the traditional bank loan. Just think, within the next 2 days or so you could be well on your way to grow your business in bigger and better ways than ever before.
Speak with a lending specialist today about funding the growth of your business.