US cash in advance company launches UK arm to help SMEs manage finances

US small business financier, Business Financial Services, has launched a UK arm, Boost Capital, and a £50m fund which it claims will help businesses bolster their cash flow and invest in expansion. 

Boost Capital enables businesses to use their future credit sales to access the unsecured funding they need to invest in new equipment, stock, marketing, remodelling, expansion and other business demands. 

The company predicts the so-called business cash advance market will reach £200m in the UK.

Business owners who accept credit and debit cards as a form of payment can qualify for £5,000 to £500,000 in 24 hours and receive funds in as little as five days, the company says.

Through a secure Escrow service, supported by national accountancy firm, Baker Tilly, Boost Capital receives a fixed percentage of future card transactions, ensuring payments are made in line with sales performance. Based in Chelmsford,Essex, Boost Capital is the UK arm of Business Financial Services, a leading provider of business cash advance in the USA. 

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 said to be the UK’s first universal business cash advance provider, which means businesses with any card processor can access their products without having to change 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, the company said. 

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.”