Stortford Card Company Introduces Alternative Cash Advance System For SMEs

Merchant Funding sign - Stortford Card Company Introduces Alternative Cash Advance System

Bishop’s Stortford’s pioneering card payment company is continuing to expand its services with the introduction of Merchant Funding.

Chip & PIN Solutions, of the Raynham Road Industrial Estate, believes its new cash advance system is a more convenient alternative to the traditional borrowing offered by banks.

Aimed at small and medium-sized enterprises (SMEs), Merchant Funding enables companies to apply for financial backing equivalent to an average month of their card sales.

As the cash advance is directly linked to card takings, business owners benefit from the certainty that it is affordable.

The service has already assisted firms with more than £7m of funding and is expected to provide up to £10m in 2016.


Chip & PIN Solutions managing director said: “As a business owner, I understand the importance of maintaining a healthy cash flow.

“Merchant Funding is a great product as it provides businesses with immediate funding, and there are no limitations on how the money is spent.”


Banks provided nearly 80% of all SME credit in early 2014. Loan and overdraft borrowing for that year was also extremely high.

Merchant Funding does away with standard financing restraints such as penalty charges, late fees and fixed month payments, with funding from £2,500 to £500,000 available.

The amount repayable is agreed at the beginning and paid back as a fixed monthly percentage of credit and debit card sales.

And the application process is one of the quickest, with funds normally deposited within 24 hours.

Businesses must have been trading for at least four months, but there are no credit footprints and no security is required, so applicants can be assured that valuables such as their house are safe.

Some 90% of Merchant Funding applications are approved.

Read more here.

 

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Jenna Hamlyn