Linked Finance Launches Merchant Cash Advance

Linked Finance has launched a merchant cash advance product, offering businesses a one-time payment that frees up their future revenue.

The Irish peer-to-peer lending platform said the business was receiving a lump sum with repayments based on a percentage of its daily credit and debit card sales.

Read more: Two-thirds of Irish SMEs struggle to access credit

Linked Finance said the advance can be used for a variety of reasons, such as regular cash flow, purchasing inventory or equipment, hiring staff, expanding office space, or digital upgrades.

The platform said the advance could suit a wide range of businesses that accept credit or debit cards as payment for their goods or services such as restaurants and takeaways, businesses in online, pubs and bars, hotels, retail stores, gymnasiums and hairdressers and beauty salons.

The refund is sent directly to Linked Finance by the provider of the borrowers’ payment terminal.

Read more: Linked Finance launches open banking solution for borrowers

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“Businesses have several financing options to fund their growth,” Linked Finance said in a blog post on its website.

“A merchant cash advance is one of those options. An alternative financing option to a term loan, a merchant cash advance is best suited for businesses that receive regular payments by credit or debit card.

“An advance is also ideal for a company that needs funding quickly. Not every business expense can wait for a lengthy loan application process with a traditional bank.

“With a 24-hour credit decision and fast drawdown, a Linked Finance merchant cash advance is a short-term financing option that can work for business owners.”

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