The London-based lender 365 Business Finance has reported that in 2020 there was an 18% year-on-year increase in the number of food retailers taking out merchant cash advances – to mainly assist with purchasing more stock, managing cashflow and for the refit of premises.
Food retailers in the UK have had an extremely busy time during the last 12 months, as households have placed increased demands on them during lockdowns due to COVID-19. In response to this, food retail outlets have been finding that the flexibility of a merchant cash advance has suited their needs for a simple and quick way to access extra funds, required particularly to invest in additional stock.
Typically, the average merchant cash advance applied for by these retailers is now higher than in previous years, at £20,000, up 22%* in the last 12 months.
Managing Director at 365 Business Finance, Andrew Raphaely, said, “Food retailers have been doing a fantastic job to keep up with all the demands on them over the last year, feeding the nation during the pandemic. It is rewarding for us that we are able to provide support by offering an additional source of funding – that is easy to obtain and pay back.
“Even if food retailers have already taken advantage of the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme, they can still apply for a merchant cash advance which we can approve in some cases within just 24 hours.”