How could Moneyspring help my business?
Moneyspring could help you get a straightforward cash injection of between £3,500 and £100,000, quickly and with the minimum of fuss.
How does it work?
Moneyspring does not provide loans so there’s no credit agreement, no interest rate and no fixed monthly repayments. This is credit/debit card factoring. You simply sell an agreed amount of your future credit and debit card sales for an upfront cash sum. The amount you sold is then taken automatically from your daily card transactions as an agreed percentage until the full amount is reached.
Is this a loan?
No, there is no credit agreement involved. It is a simple sale and purchase agreement.
How do I qualify?
The basic criteria are simple. You must be able to provide 12 months of merchant credit/debit card statements, process an average of at least £3,500 in card sales per month, and have at least one year remaining on your lease.
How can I use the cash?
There are no real restrictions on how you use the money, as long as it’s legal! Most businesses use it to grow and improve their premises, equipment or stock, but it can also be used to help you through a sticky period when cash flow is tight.
How quickly can I get the cash?
One of the advantages of this is that it’s quick. Most businesses are able to get the cash in their account within ten working days.
Do I need to change card processors?
Maybe. You’ll need to use Lloyds TSB Cardnet, so if you use another system at the moment you’ll have to switch.
Do I get a discount if I pay early?
You are selling a specific amount of your future credit/debit card transactions and that amount will not vary. Equally, there is no set term for the money to be collected. So if it gets collected earlier than originally expected there are no discounts (or penalties!) and if it takes longer it won’t cost you any more.
How often are payments taken?
An agreed percentage of your daily credit and debit card sales will be taken automatically – there is nothing you need to do.
How will I know how much is left to pay?
You will get a printed monthly statement.
How much does this cost?
The exact cost will depend on various factors, such as the percentage of your transactions you agree to sell. It does work out more expensive than a bank loan, but it’s much easier and quicker to arrange (you could be using the money to improve your business long before you’d have got a bank loan approved) and it’s much, much more flexible and sympathetic to your cash flow. You can also use it for things the bank would not consider lending you money for. Only you can say if that’s good value for your business, but many have found it so effective that they use the facility again.
