Businesses are set to receive cash advance funding boost of £50m

Business Financial Services are a company based in the US that are designed to provide capital to small companies. They’ve recently launched themselves in the UK under the name Boost Capital and they’ve established a fund worth £50 million which is intended to be invested in small businesses and help them improve their cash flow.

The business is going to ensure that companies have enough credit and that they are able to get funding on an unsecured basis. This is going to allow them to invest in marketing, remodelling, and even expansion of their businesses. The loans are also available to meet other demands and companies are going to be able to borrow up to £500,000. The application process takes one day and it is possible that the funds can be received by the companies in just five days.

The funding is going to be supported by the well-known accounting firm, Baker Tilly. The company is going to be based in Essex and it is expected that they are going to become one of the leading cash providers for small businesses in the UK.

David Abbott, UK managing director of Boost Capital, said: “Business cash advance is a relatively new concept in the UK and one that has the potential to become a vital part of the SME funding mix. Its arrival on our shores is in response to the growing demand from businesses, many of which are struggling to access bank funding, for more flexible alternative sources of capital.

“By the end of 2012 we expect to have extended over £10m in funding and be renewing cash advances to merchants who have seen the benefits to their business of using a Business cash advance to grow their market share.”

Boost Capital is the UK’s first universal business cash advance provider, which means that businesses with any card processor can access their products without having the hassle of changing their existing relationship. Businesses that take a high volume of card sales are best suited for this service, including the restaurant, retail, beauty, and hotel sectors.

Marc Glazer, CEO and president of Business Financial Services, said: “While business cash advance is a £1bn a year industry in the USA, the funding source is relatively unknown in the UK with only a handful of providers that are tied to certain banks.

Being the first universal provider in the UK is a real landmark for the business, but also a great opportunity to become a key part of the nation’s financial landscape.”