Featured in Your Business Magazine, 1 December 2012
A new source of funding for existing businesses
Retail Capital recently launched its business cash advance product and is building a growing base of loyal supporters after advancing over R70-million to date.
Retail Capital has come out fighting for small businesses as tight bank credit conditions make it very difficult for small and medium enterprises (SMEs & SMMES) to access the credit they need to grow or even just continue operating in the face of tough market conditions. “Essentially a “buy and sell” agreement between a provider and business owner, the business cash advance product allows you to use your future card turnover as a way of raising working capital today.” explains Retail Capital CEO David Lewis, The advance is repaid from an agreed percentage of the merchant’s future credit card sales.
While new to the South African market, business cash advance funding products have been available in the US since 1998, explains Lewis, and are now established in
the UK, Europe and other markets. According to Lewis, restaurant owners are the number one users of business cash advance products around the World with retailers second.
The benefits are clear: Business owners who require working capital to fund new equipment, to expand, six equipment or to get them through challenging cash-flow times or the off-season can access funds that they would find very difficult – if not impossible to access through traditional channels.
To qualify, business owners must accept credit or debit card payments and must submit six months of credit card statements, three months of retail banking statements, proof of lease or ownership of premises and provide references from key suppliers or their franchisor.