How does it work?
What is a Business Cash Advance?
The Business Cash Advance is designed especially for small businesses. It’s funding based on your business’ card transactions and potential. It includes just one fixed cost agreed upfront*, so you know exactly how much you will pay. The advance is paid for via an agreed percentage taken from your customer card transactions processed by Worldpay. It happens automatically mirroring your cash flow – ideal for seasonal businesses.
Funding can be used for many business purposes including; refurbishment, hiring staff, purchasing stock, expanding premises, equipment upgrades – whatever your business needs.
Who are Liberis Finance?
We’ve chosen to partner with Liberis Finance as they are one of the leading providers of Business Cash Advances in the UK. Liberis is a leading small business finance provider offering simple, flexible and transparent funding to help UK businesses achieve their ambitions. Established in 2007, in a space where traditional banking and loan models were unable to meet the needs of UK small businesses, Liberis provides finance based on business potential, not just credit history. Through its Business Cash Advance, an innovative form of funding, Liberis links payments directly to cash flow so businesses only pay when their customers pay them. Liberis are backed by British Business Bank Investments, the state-owned economic development bank established by the UK government.**
This product is provided by Liberis Ltd. Liberis Finance is a trading name of Liberis Ltd. Terms and conditions apply. Worldpay Business Finance is not an FCA regulated product, it is provided by Liberis Ltd and Worldpay will receive a commission. Liberis Ltd is not affiliated with the FIS group of companies.
How does it work?
- You can either apply online or call our expert funding team at Liberis. You can then tailor the funding amount you want to receive.
- Liberis will then agree a percentage split that will be taken from your customer card payments processed by Worldpay. This percentage will be taken from your daily batched card transactions and will go to Liberis to pay the advance, the remaining balance will go to you. E.g. a split of 10% would see 10% of your daily card transactions go to Liberis and the remaining 90% to you.
- Then to determine your overall payment amount, Liberis will agree a price with you, which is one fixed cost added to your advance amount, so you know exactly what you’ll be paying*.
- Once Liberis find a funding amount and price right for you, they will then process your application. During this process Liberis will look at your business and conduct some checks, such as affordability, credit and insolvency.
- Once approved, you will receive the funds to use as you wish for your business.
- Worldpay will set the split up and your payments will be taken automatically from batched daily card transactions through Worldpay until your business cash advance and funding fee have been paid. This will happen automatically until the advance is satisfied.
How are payments to Liberis made?
A pre-agreed percentage of your daily card transactions will be diverted so that they are automatically paid to Liberis: that means every time you take a card payment we will automatically be sent that percentage of each transaction to pay your advance - it‘s that easy, you don’t need to do anything.
Worldpay will set the split up and your payments will be taken automatically from batched daily card transactions through Worldpay until your business cash advance and funding fee have been paid. This will happen automatically until the advance is satisfied.
How do I qualify?
If you are a Worldpay customer who takes at least a minimum of 10 credit and debit card transactions totalling +£5k a month, you are eligible to apply. Ideally, your business will have been trading with Worldpay for over 4 months. However, if you have switched to Worldpay from another provider and can provide evidence of at least 12 months’ card takings, Liberis can look at your business and discuss with you whether you could be eligible for a Business Cash Advance.
How much could I get?
Liberis can provide eligible customers with funding. The amount they fund will depend on your business. They’ll look at your monthly card transactions with Worldpay and provide a funding amount for your business.
You can check how much you may be eligible for without submitting a full application by looking on the cleverCheck tool from Liberis (see below ‘what is cleverCheck').
What is cleverCheck?
The simple cleverCheck tool which you can find here, will look at your business’ circumstances and, in most cases, will be able to let you know if you’re approved by Liberis before you apply.*** It will tell you how much funding you may be for and give you a quote that’s tailored to your business. Your credit score won’t be impacted, and there’s no obligation to take the funding. Your credit score won’t be affected when applying, but taking out a cash advance could affect your credit score.
Please note that the quote will be based on information about your business that is available at the time, and that the actual quote may differ depending on your circumstances at the time you submit your application. Business Cash Advances over £25k are subject to a manual underwriting process before any offer can be made. Liberis can assess business income not processed through Worldpay when assessing a business for funding.
How much will it cost?
Liberis just charge you the agreed fixed fee which is added to the amount you are advanced - and nothing else. This is always paid to Liberis as a percentage of your card takings.*
What additional fees are there?
There are no arrangement fees, no early repayment fees, no late payment penalties and no hidden costs. There is just one cost of finance (funding fee) which Liberis agree with you up front. You pay this and the advance amount.*
Do I need to change anything?
To enable us to divert the payment percentage, we will need to open a new settlement account for you. This means that your daily card takings will be deposited into this account and then immediately forwarded to your designated business bank account minus the payment percentage that is sent to us. This does mean that your daily transactions will settle later than they did before you received the advance. The takings will land in your account after the transaction goes through the card terminal - an example is below:
- Day 0 - Card transactions totalling £500 taken on Monday
- Day 1 - Transactions are sent to your settlement account on Tuesday
- Day 2 - Split of 20% is taken totalling £100 on Wednesday
- Day 3 - £400 clears in your bank account and Liberis receive £100 to repay your advance
Do I need to notify you if anything changes?
You should notify Liberis;
- If you stop taking card transactions for any period of time, planned or otherwise. For example, if you are going on holiday for a week and closing your business during this time, then just let Liberis know.
- If you have any changes to the way your business operates that could impact your card takings.
- If you plan to change the terminal or your card processor.
Is there anything that I shouldn’t change?
If you plan to make any changes to your Business setup (i.e moving from Sole Trader to Limited Company or one Limited Company to another) or if you change card processor, or the way you operate your business, you may be in breach of your contract so give us a call first.
If you close your business or cease trading for any period of time greater than 7 days and do not notify us, then you may be contacted by our Collections Team, so please let us know in advance and we can discuss your options. Please call to talk to us if you have any questions.
Will I get a decision on funding?
For many customers Liberis will also be able to let you know if you’re approved before you apply for funding.**** Not all enquiries can be approved through cleverCheck and in some cases a few more details may be needed from you in order to get your decision.
Can I tailor my quote?
Absolutely. You can choose the amount of funding you would like, and the percentage of your customer card transactions you would like to pay towards the advance. This determines the funding fee and ultimately overall amount you will pay. Liberis work closely with businesses to find the funding that’s just right for them.
Does my offer expire?
Worldpay may from time to time send you a personalised letter and details of the Business Cash Advance that you may be eligible for and the cost of this. The letter will include details of the length the offer from Liberis is available for and within which time you are able to accept it (typically this is 30 days from the date of the letter). The amount and cost of any final offer however will be subject to final approval after your application and depend on your business circumstances and credit information and results of Liberis’ other checks at the time.
What credit checks do you perform, and will they impact my credit score?
When you submit a full application, Liberis will use a number of sources of information to help understand your business, including 3rd party credit bureau checks. They carry out both company and consumer credit bureau searches, which will leave a record of the search on both credit files, visible to other finance providers. Your credit score won’t be affected when applying but taking out a cash advance could affect your credit score.
What if my credit history isn’t squeaky clean?
Liberis consider applications based on business potential and your business performance by way of card transactions through Worldpay - not just your credit history. However, Liberis are committed to ensuring they act responsibly so, just as Liberis do, you should think carefully about financial products for your business and seek appropriate advice when making decisions.
Do you take any security or collateral?
A Business Cash Advance is an unsecured way of accessing finance and is not a loan. This means your home is not at risk. Liberis will ask you for Personal Guarantees if you are applying as a limited company or limited liability partnership.
What documents can I submit as proof of identity?
Liberis accept a number of different document types as proof of identity in your application; and you can find the full list below.
Please note that the documents you submit must be photocopies, scans, or photos of original documents only. Liberis will not accept screenshots of these documents, and please do not send any original documents either.
- Current valid passport
- UK birth certificate issued within 12 months of the date of birth in full form including those issued by UK authorities overseas such as Embassies High Commissions and HM Forces
- EEA member state identity card
- Current UK or EEA photocard driving licence
- Full old-style driving licence
- Photographic registration cards for self-employed individuals in the construction industry - CIS4
- Benefit book or original notification letter from Benefits Agency
- Firearms or shotgun certificate
- Residence permit issued by the Home Office to EEA nationals on sight of own country passport
- National identity card bearing a photograph of the applicant
- HMRC correspondence that includes National Insurance Number
What documents can I submit as proof of address?
Below are the document types that Liberis will accept as proof of address. As with your proof of identity, the documents you submit for proof of address must be photocopies, scans, or photos of original documents only. Liberis will not accept screenshots of these documents, and please do not send any original documents either.
- Personal Bank Statement or Credit Card Statement
- Personal Mortgage Statement
- Utility Bill (gas, electricity, water, fixed landline telephone - not mobile phone)
- Residential Council Tax Bill (current year)
- HMRC Correspondence (e.g. PAYE coding notice / Tax Credit notification etc
- UK Driver's Licence
- Land Registry Confidence of Address
How long will it take me to pay Liberis Finance?
Your payments to Liberis Finance are linked to the way you are trading which means there is no set period to pay off, although Liberis do estimate approximately how long it will take you to pay in your quotation. The payments will mirror your cashflow, so the time taken depends on your business sales.
How will I know how much I have left to pay back?
Running a business is stressful enough as it is without having to chase up any financial payments - we get it! That’s why Liberis not only provide you with a clear monthly statement of how your payments are going, but also offer you the use of myLiberis, an online customer portal where you can keep up to date with your payments and balance anytime, anywhere.
You can also give Liberis a call - Monday to Friday, between 9am and 6pm - and get your up-to-date balance over the phone.
What happens if I change my mind after receiving the funding?
You have the right to change your mind within 14 days of receiving the funding with no charge. The funding issued will need to be returned in full to Liberis Ltd.
Can I pay back early?
You have the right to change your mind within 14 days of receiving the funding with no charge. After that, the fixed, upfront funding fee will still apply if you pay early, but there will be no early payment fees.
Is there a time limit to pay back?
The Business Cash Advance has been crafted as a funding product that is typically expected to be settled between 4-12 months, but the exact time it takes for you to pay it is ultimately down to how your business performs. Compared to business loans there are no varying fees so Liberis will discuss all options and the cost with you from the beginning, so everything is clear and understood. The total cost will be fixed, but you will only pay as your customers pay you.
Are there any fixed monthly payments?
No. Payments are made by way of a fixed percentage of your credit and debit card sales*. This works particularly well for seasonal businesses with a fluctuating cashflow as when business is quiet, you’ll pay less. And if business is busy, you’ll be paying more - always the same percentage of your card takings.
What can I spend the money on?
You can use your Business Cash Advance for many different business’ needs, whether it’s purchasing stock or equipment, refurbishment or repairs, or simply bridging a dip in cashflow.
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*Subject to a monthly minimum amount which is calculated as a small percentage of the total amount funded and that fixed fee.
**Liberis are supported by British Business Bank Investments, the commercial arm of the British Business Bank, a development bank wholly owned by the UK Government. Neither British Business Bank Investments Ltd nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA)
***Any preliminary approval will be based on the information about your business that is available at the time. You will get a final decision after submitting an actual application. All advances are subject to credit and other checks.