Technology specialist gets behind hospitality start ups and growing providers with new Merchant Cash Advance offer
Market research indicates that since the Brexit vote UK tourism is likely to benefit. In response to the hospitality sector’s continued growth, Lolly, the Point of Sale (PoS) specialist, has launched merchant cash advance – helping to support its customers to increase capacity and to meet demand.
Merchant cash advances, repaid as a pre-agreed percentage of future sales, are becoming increasingly popular due to their flexible nature and the fact that the repayment plan accounts for seasonal income variations. It provides businesses, that take credit and debit card payments, with a low risk cash advance. This financing has a much lower impact on their cash flow because repayment is based on their day-to-day trading levels.
Peter Moore, CEO at Lolly, said: “We specialise in supporting small businesses across the UK’s hospitality industry. And we want to help our customers to expand, refurbish and restock, which is why we have chosen to launch merchant cash advance finance. I believe it is becoming the smarter, low risk way to finance their business.
“We understand the difficulties that seasonal and fledging hospitality providers face. For many, it makes sense to have the flexibility to receive funding during quieter months – when it’s most needed – knowing that payback will happen in mid to high season.”
The service is offered in conjunction with Liquid Finance Partners Limited. Eligible businesses include those which have been trading for 12 months or more, and who take between £3,500 and £250,000 per month through credit and debit card payments.
Unlike a loan, merchant cash advances are unsecured and processed faster than a typical loan and give quick access to capital when needed.
How much and how long a provider repays fluctuates with sales volumes – giving greater flexibility to manage cash flow.