6th July 2023

A Flexible Financial Solution: The Business Cash Advance

In today’s fast-paced business environment, access to quick and flexible funding solutions is crucial for small and medium-sized enterprises (SMEs) to seize growth opportunities. A Business Cash Advance can be an ideal financing solution for businesses not wanting to offer security.

Traditional loans may not always be accessible or suitable. Especially for business that are new, lack significant trading history, or have fluctuating revenue patterns. This is where a Business Cash Advance (BCA), also known as a Merchant Cash Advance, can be a game-changer. Allowing the company to overcome short-term financial challenges, fund growth opportunities, or manage cash flow fluctuations with greater ease and convenience.

Our compelling BCA provides SMEs with the necessary funds to fuel their growth, without the constraints of traditional financing options.

Product Details Offered by Momenta Finance

Momenta Finance’s Business Cash Advance offers a range of features and benefits tailored to the needs of small businesses. Let’s take a closer look at the key aspects of this innovative financing solution:

  • Advance Amount: With Momenta Finance, businesses can secure a cash advance ranging from £10,000 up to £150,000. The advance amount is calculated based on a percentage of card takings. Allowing eligible businesses to access up to 120% of their monthly card transactions.
  • Advance Term: One of the notable advantages of our BCA is the absence of a fixed term. Instead, businesses can opt for top-ups after four months. Providing them with the flexibility to manage their finances based on their unique circumstances and evolving needs.
  • Factor Rate: Momenta Finance determines the cost of the cash advance using a factor rate, which starts at x1.18. This rate serves as a multiplier applied to the advance amount to determine the total repayment obligation. The specific factor rate will depend on various factors, including the business’s industry, trading history, and overall creditworthiness.
  • Repayment Structure: Repayments for the Business Cash Advance are calculated as a percentage of monthly card takings. This structure ensures that the repayment burden aligns with the business’s revenue flow, providing much-needed flexibility during periods of fluctuating income. When the business is thriving, it repays the advance faster, and during slower periods, it doesn’t have to worry about late payments affecting its creditworthiness.

When is the BCA the right funding solution?

A Business Cash Advance can be an ideal financing solution for businesses that meet specific criteria and face common challenges. Here are a few scenarios where a BCA may be the right fit:

  • Insufficient Eligibility for Traditional Loans: Many small businesses struggle to meet the stringent requirements set by traditional lenders for securing a loan. With our Business Cash Advance, even businesses that are not considered “big enough” by traditional standards can qualify for funding. As long as the business generates a minimum of £10,000 per month through card terminals, evidenced via merchant statements, it can apply for a BCA.
  • New Business Ventures: Most loan providers typically require a minimum of two years of trading history for traditional business loans. However, with a Business Cash Advance, Momenta Finance provides a viable alternative for startups and new businesses. They understand that young businesses often need access to funds to get off the ground and sustain their growth during the crucial early stages.
  • Fluctuating Business Revenue: For businesses with irregular income patterns, such as seasonal businesses or those affected by external factors, cash flow management can be challenging. A Business Cash Advance offers a repayment structure that is closely tied to the business’s card takings. As a result, businesses can navigate through periods of high and low revenue without the added pressure of fixed monthly repayments.
  • No or Limited Security: Traditional loans often require collateral or personal guarantees to secure the funding. However, depending on the situation, Momenta Finance

Get started with securing the funding your business needs

Our BCA presents a flexible and accessible financing solution for SMEs that may not meet the requirements of traditional loans. With straightforward application process, repayments based on monthly card takings, and the ability to receive top-ups after just four months, this financing option empowers businesses to seize growth opportunities and manage their cash flow effectively.

Whether you’re a new business, experiencing fluctuating revenue, or seeking an advance without the need for security, our BCA can be the catalyst for your business success. Explore the possibilities and take a step towards securing the funds you need to fuel your entrepreneurial journey.

About Momenta Finance

Momenta Finance, formerly Merchant Money, is a leading provider of alternative finance solutions headquartered in London, United Kingdom. Established in 2013, Momenta Finance offers a panorama of lending options, including unsecured and secured business finance, bridging loans, and business cash advances. The company’s commitment to transparency, tailored and credible funding has made it a trusted partner for businesses seeking financial support. Momenta Finance is accredited by the British Business Bank and upholds the highest industry standards.