Professional and medical services benefiting from revenue-based finance
365 Business Finance, a London-based lender to SMEs in the UK, has revealed that there was a significant rise last year in the number of merchant cash advances taken out by businesses in the professional and medical services industry, compared to the previous 12 months.
This 23% increase in 2021, when compared to 2020, includes the provision of revenue-based finance to dentists, doctors, physios, medical clinics, funeral directors, opticians, vets, consultants and accountants – with dental practices, optometrists and veterinary surgeries the top three last year in the professional and medical services sector.
Since pre-pandemic levels in 2019, there has been an uplift of 125% in demand from this sector for the type of fast and flexible finance that 365 Business Finance offers. SMEs can apply for unsecured funding from £10,000 to £300,000, with no interest, fixed terms or APR. Repayments are taken as a small percentage of debit and credit card sales, meaning businesses only repay the advance when their customers pay them.
Managing director at 365 Business Finance, Andrew Raphaely, said, “We have a rapidly growing client base within the professional and medical sector, which covers many different businesses and services.
“With such companies ramping up and to a certain extent re-building their businesses over the last nine months, following the lifting of restrictions on trading in 2020 and early 2021, they have found that using flexible finance has been the best way to help them do this.
“It always gives the team here great satisfaction to see how our merchant cash advances support smaller businesses, particularly through key stages in their growth.”
Read our latest blog to find out how Smilemaker Dental Care, a current client of 365 Business Finance, has utilised revenue-based finance for innovation and marketing purposes. Alternatively, watch the client spotlight video.