Frequently Asked Questions

What is Alternative Financing?

The term Alternative Financing or Alternative Funding is used to describe any financing option other than traditional methods eg a Bank Loan or Overdraft.

What is a merchant cash advance?
  • A merchant cash advances is an unsecured provision of funds to a businesses based on their monthly average takings from their credit/debit card terminal.
  • The advance plus a factor rate “fee” is paid back as a daily percentage of credit/debit card takings until full repayment.
Can anyone apply?
  • You must have a minimum of 12 months card processing history
  • You must process an average monthly card turnover of £3,500 minimum
  • You must either own your business trading premises or have at least 12 months remaining on your lease
How much can I borrow?

Up to 100% of your monthly card turnover.

Should I talk to an advisor first?

It is always advisable to seek advice when looking at finance – registered advisers can walk you through the options available and advise which route would best suit your business needs.

Do I need to write a business case?

You do not need to provide a business case to apply for a Merchant Cash Advance from Liquid Finance but we will expect you to be clear about what you need the funds for and the potential effect on future business.

Do I need to provide collateral?

Unlike a Bank Loan, you will not be required to provide collateral to secure your business advance from Liquid Finance.

When should I apply for funds?

It is always advisable to apply for funds as soon as you think you need them – try not to leave it until the last minute.

How does this differ from a bank loan?

When applying for a bank loan you will typically be asked to provide security and a clear business case. A cash advance requires neither of these. With a traditional bank loan, you will also be subject to fixed rate APR’s, fees and a strict repayment schedule.

How easy is it to get approved and funded?

90% of qualified applicants who meet our basic requirements get approved. Our expert account managers will guide you through the full process from qualification, through the paperwork requirements right up to receiving your funds.

Is there a deadline to paying back the advance?

The are no payback deadlines or penalties, Liquid Finance will take a percentage of your daily terminal takings until the advance plus fee are paid off.

How soon can I receive funds?

We can usually approve your application and deliver your funding within 14 business days or less. The speed of the process generally depends on how quickly we receive applications and supporting information. The faster you send them back, the faster we can process your funds.

How do I receive my funding?

Your cash advance will be automatically transferred to your business bank account.

What can the Merchant Cash Advance be used for?

The Cash Advance is ideal for many different types of business. Our underwriters assess every application individually, on each business own merits. The advance can be used in any way you like to grow and improve your business, common uses are as follows:

  • Renovation
  • Expansion
  • Inventory/stock
  • Equipment upgrade
  • Website development
  • Opportunity funding
  • Emergency funding
Can I renew / receive additional funds later on?

Of course you can. You must be in good standing, and a certain percentage of the first advance must be paid before you renew.