Innovative loan opens up access to finance for seasonal businesses
As hospitality firms gear up for the peak summer season, an innovative loan designed specifically for businesses with seasonal or fluctuating trade is being rolled out nationally.
The Business Cash Advance from Ashley Business Finance offers sums of up to £100k, with repayments made in line with the pace of the business. The company repays a small fixed percentage each time a customer pays on credit or debit card until the loan is repaid.
That means that during busy periods, the loan is repaid more quickly, while during quiet months, it will not be paying more than it can afford. There are no fees for early repayment.
The Business Cash Advance is already in use by Ashley’s customers in a number of selected areas but is now being made available throughout England and Wales. It comes at the time of year when many businesses are investing in new stock or equipment in the run-up to the holiday season.
Jonathan Cranston, chair of Ashley Business Finance, said innovative finance products were increasingly important for the retail and hospitality sectors, with bank lending continuing to fall and seasonal businesses considered high risk by many lenders.
Jonathan said: “The Business Cash Advance was specifically designed for businesses with seasonal or fluctuating trade and which may struggle to make regular repayments or even to access finance in the first place.
“It’s hard enough to manage cashflow within a seasonal business without the added burden of making weekly repayments. In this case, repayments automatically work in line with daily turnover, so businesses don’t have to worry about finding the money.
“As we base our decisions on previous credit card sales and not the credit rating of the business or its trading history, we are often able to support retailers which would be unable to access investment from other sources.”
The Business Cash Advance is open to businesses which have been trading for just three months. Repayments are a fixed percentage deduction – usually between 5-15% – of each credit or debit card payment made through the PDQ machine over a 6-18 month period to suit the needs of the business.