Liberis, a provider of cash advances to small businesses, has teamed with Worldpay to offer Britain’s small businesses the ability to take an unsecured cash advance based on their future credit and debit card sales.
Payments by the customer are made on the basis of a pre-agreed percentage of the business’ card transactions, so business owners only pay when they are earning and don’t face the stress of having to meet a regular monthly payment if business is quiet.
The flexible cash advance includes no fixed term and unlike traditional “loans” from banks and credit card companies, business owners will not face fines for failing to make a payment. Furthermore, if the advance takes longer to pay off, the originally agreed payment cost remains the same.
Worldpay’s move into alternative finance comes as small business owners continue to face significant obstacles in funding their growth. Research shows that 50% of loan applications from first time SME borrowers are rejected.
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