Worldpay Business Finance will offer Britains small businesses the ability to take an unsecured cash advance based on their future credit and debit card sales.
Payments by the customer are made on the basis of a pre-agreed percentage of the business card transactions, so business owners only pay when they are earning and dont face the stress of having to meet a regular monthly payment if business is quiet.
The flexible cash advance includes no fixed term and unlike traditional loans from banks and credit card companies, business owners will not face fines for failing to make a payment. Furthermore, if the advance takes longer to pay off, the originally agreed payment cost remains the same.
Worldpays foray into alternative finance comes in the light of small business owners continuing to face significant obstacles in funding their growth. According to BIS Consultation on SME Finance, 50% of loan applications from first time SME borrowers are rejected.
Worldpay Business Finance is not an FCA regulated product.
In October 2015, Worldpay joined the London Stock Exchange in the UKs largest IPO of the year, giving the payments processor a market value of more than GBP 5 billion and giving its existing investors and staff a windfall of more than GBP 1 billion.
For more information about WorldPay, please check out a detailed profile of this company in our dedicated, industry-specific online company database.
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