As you are aware the government have been encouraging UK lenders to increase lending to the UK market, on the back of this a new financial product specifically for the following sectors.
· Pubs, Clubs, Wine Bars, Restaurants, Hotels, Hair & Beauty, Florists, Automotive repairs, Pharmacists
· Dry Cleaners, Shoe Repairs, Sports Shops, Cycle Shops, Butchers, Green Grocers, Garden Centres
· Cash & Carry, Off Licences, Pet Care, Builders Merchants, Jewellers and more.
The scheme has been initiated to support business growth and cashflow in the current climate.
How The Funding Program Works:
Hoteliers and restaurateurs can now borrow unsecured funds based on current debit and credit sales. The lend is based on an average monthly volume of credit/debit card transactions. A merchant can expect to receive a lump sum roughly equivalent to this monthly average. The money advanced to the merchant is not a loan, it is purchasing an amount of the merchant’s future debit and credit card receivables.
Repayment is then fully automated through the Lloyds TSB Cardnet card processing system. This is done by a pre-agreed small percentage of the merchant’s daily takings on credit and debit cards being directed to the lender. Basic figure here is 20 pence taken from every £1 through the machine. This process continues from the day of funding until the lender has recouped all the receivables purchased by the advance made.
The repayment amount and the percentage of daily credit/debit card takings directed to the lender are fixed for the life of the contract. The lender estimates that a contract performing as expected will achieve full repayment in approximately 7 months. However there is NO fixed term, NO repayment dates, and NO penalties for late or slow payment. The fixed percentage taken by the lender means repayment mirrors the merchant’s cash flow. The lender gets paid when the merchant gets paid.
Advantages:
£ No application fees or hidden charges, and a simple application process.
£ Money on the merchant’s account 10 working days after application.
£ No security required.
£ No audited accounts or tax returns required.
£ No fixed payments – The lender gets paid when the merchant gets paid.
What A Merchant Needs To Get Started:
1. Submit 12 months card processor statements.
2. 3 Trade References.
3. Landlord Information and 1 year remaining on their lease.
4. An average of at least £3,500 per month in credit/debit card sales.
We have attached an application form for you to complete, and fax back to us.
I look forward to receiving your application.
Kind regards
Contact Yellow Note on 07040 900 768 for more information.