You may have come across the term ‘Business Cash Advance’ and wondered exactly what it was. It is a phrase that is widely recognised by many in the business landscape and this is because it is the name of a popular lending product.
Unlike standard business loans, this type of lending allows for a lot more flexibility. Rather than interest rates, rigid repayment terms and set monthly amounts, Business Cash Advance (BCA) takes a more understanding approach.
Instead, with a Business Cash Advance, a final cost for finance is agreed and businesses work towards reaching that repayment finish line in whatever way they feel possible. We trust that our clients will reach the finish line, but we also understand that most businesses require some form of flexibility with repayments, as cash inflow is not always as consistent and reliable as most of us would like.
With the, businesses such as growing SMEs are able to scale their repayments up or down, depending on the state of their cashflow each month.
If one of our clients has a business that thrives during the Summer months, but then experiences a huge depletion in sales during Winter, the payment amount can be altered to reflect this changing financial situation.
A Business Cash Advance is the perfect solution for businesses that are currently dealing with a cash flow problem. Given that the majority of businesses find themselves in a difficult cash flow situation at some point, we always encourage the businesses we work alongside to learn how to do accurate.
And contrary to popular belief, borrowing money to expand or even sustain your business is actually a fantastic idea, but an even better one when the money is borrowed when a business is in a strong position with good cash flow.
So, with a better understanding of what a Business Cash Advance is, the next question is naturally “what can I spend it on?”
Well, it will come as a pleasant surprise to discover that the funding gained from Business Cash Advance can be used for any business purpose.
We realise that there is a huge spectrum of reasons why a business may want to use this additional funding, and it is ultimately up to the business to use the finance we provide in whichever way they deem necessary. But the team at Nucleus Commercial Finance have outlined the main reasons that businesses access BCA below:
Providing the best experience possible for your customers is your number one goal, yet if your business involves potential customers coming onto the premises, you might be in desperate need of finding a new one.
Maybe you own a restaurant business that has developed a growing fan base and your current location no longer caters for the number of customers flooding through the doors…
Or you might need to find funding to hire out a premises for an upcoming event your business is about to host.
Whatever the reason, with a Business Cash Advance, your business will be able to operate in a new premises without being tied to daunting, fixed monthly repayments.
A Well Needed Refurb or Expansion
Perhaps you already operate in the perfect location for your business, but the premises itself is in need of a little TLC? With Business Cash Advance, you can inject some life into an outdated building that has all the foundations for success yet is in dire need of an urgent refurbishment.
Or you might have grown your customer base over a period of time and found that your current set-up does not provide the space needed for the legions of fans your business has accrued. If your business is desperate to meet its growth demands, BCA is a product that can aid the necessary development.
Navigating Seasonal Peaks
For many businesses, especially SMEs, seasonality is just part and parcel of everyday operations. We wrote aboutpreviously, but cash flow challenges are sometimes unavoidable.
Business Cash Advance is the perfect solution to the challenges presented by seasonality as there is no set monthly repayment amount. Instead, businesses can scale their payments up or down, depending on how much revenue the business is making.
Marketing is an essential aspect of running a business and unfortunately, it often does not come cheap either. Finding the cash to put together successful, effective marketing campaigns can be a challenge, but it is commonly a bitter cycle for SMEs – without the cash available, efficient marketing cannot happen. But without the marketing, there is a lack of sales, which results in a lack of cash.
Hiring New Equipment
Your business might heavily depend on machinery to function, yet machinery comes at a high cost. If a crucial piece of equipment has just broken out of the blue, it can bring your business operations to a complete halt, which is every CEO’s nightmare. But with the help of Business Cash Advance, your business could access the funding necessary to hire – or even buy new equipment.
Lastly, your business might be in a tight spot and in desperate need of some working capital, so it can purchase stock to create revenue.
At Nucleus Commercial Finance, we understand that sometimes a cash flow crisis arises and buying new stock can seem like an almost impossible task. With the help of our Business Cash Advance product, you will have exactly what you need to get the sales your business is capable of.
Providing your business takes card payments and has been trading for 4 months, you can access business funding in the form of Business Cash Advance that ranges from £5,000 to £150,000 and above.
Our Business Cash Advance application is quick, effortlessly simple and our team gives same day decisions with a full package application. To find out more about our BCA product,with our friendly team who are ready to help and advise.