UK-based fintech Cashflows has launched the Cashflows Advance service to help eligible merchants access funding in a frictionless way. In essence, Cashflows Advance is a novel service designed to provide eligible merchants with convenient access to funding without the fixed monthly repayment structures typical of traditional funding methods.

In response to 36% of SMEs utilising external finance in 2022 according to Cashflows, the new product developed in collaboration with Recap, aims to streamline the funding process for merchants seeking to expand without the burden of rigid repayment plans. Leveraging historical sales data, the service offers merchants a pre-approved cash advance, reducing the need for time-consuming application procedures and delivering funding promptly. Repayment is tied to a fixed percentage of a merchant's daily sales, resulting in lower repayments during slower business periods.

In the context of a troubled economic climate, Cashflows Advance aims to provide essential financing to businesses in a flexible manner. In the official press release, Cashflows representatives emphasised the importance of timely access to funding aligned with sales figures to support small and medium enterprises amid economic challenges. More details about Cashflows Advance Cashflows Advance, an addition to the existing Anytime Settlement product, offers eligible merchants pre-approved funding up to GBP 150,000 without interest.

Instead, a transparent one-off fee is charged on top of the advance amount, with repayment facilitated by deducting an agreed percentage from daily settlements. This approach has the potential to improve convenience and transparency for businesses, allowing owners flexibility in utilising the funding for their growth needs. Representatives from Recap expressed enthusiasm for the partnership, highlighting how Cashflows Advance reduces funding rejection concerns for merchants, helping businesses to capitalise on growth opportunities even in challenging economic conditions.

The collaboration signifies a step forward for Recap as it expands in the UK market. Other Cashflows developments In September 2023, Cashflows extended its partnership with Visa to improve authorisation rates and provide customers with instant payouts and international payment offerings. By connecting to Cybersource, one of the products that are included in the Visa Acceptance Solutions, customers and clients of Cashflows gained the ability to access a new community of partners and an ecosystem of services.

This will gave Cashflows the possibility to scale faster and deliver an improved overall user experience, while also increasing reach. The connection also aimed to streamline Instant Payouts in a bid to optimise the manner in which clients control cash flow while reducing the manual procedures for disbursements at the same time. .