First Data Offers Simple Cash Advances To UK Businesses

First Data Merchant Solutions has announced that their Merchant Cash Advance program is now available in the UK, offering an alternative funding program for small and medium sized businesses that accept card payments to help increase cash flow.

First Data Merchant Solutions is a direct-to-market merchant acquiring business by First Data, and the new program will be offered to both new and existing First Data Merchant Solutions customers, according to a company press release.

Depending on each merchant’s number of monthly credit and debit card transactions, First Data will provide a lump-sum advance to merchants. Merchants will receive the advance automatically via a fixed percentage of daily card processing settlements with First Data Merchant Solutions.

Repayments are smaller during low-trading periods, and because there is not a fixed payment expectation, the advances will help with cash flow. Naturally the reverse will be true, and during high-trading periods repayments will increase.

Merchants are required to process at least £1,000 each month in card transactions to qualify for the advance. They must also have a good relationship with their landlord and be cleared of any bankruptcy issues.

First Data’s Merchant Cash Advance program is expected to be more desirable for merchants because it is comparably much cheaper and simpler than a loan or credit application as it requires far less documentation.

This cash advance program has already been made available to merchants in the US and has provided solutions to those at a disadvantage from recent restrictions on commercial lending and borrowing. Merchants can use the alternative funds to pay for business needs such as renovation, expansion, stock, new equipment or online marketing and websites.

Phil Curtis, managing director at First Data Merchant Solutions said in a press release, “Access to finance and reliable cash flow are key inhibitors for small and medium sized businesses in the UK and have been for the last six years. Merchant Cash Advance offers our merchant base access to an alternative source of cash flow in challenging times.”

To read the full press release by First Data click here.