Worldpay announces three year extension of Business Finance scheme

 
Oscar Lopez
BRITAIN-EU-POLITICS-BREXIT-FOREX-POUND-EURO-DOLLAR
One in three small business owners reported difficulties in securing loans from banks. (Source: Getty)

Payments giant Worldpay has announced it will be extending its Business Finance scheme, which could help over 300,000 British small businesses access alternative financing. The scheme allows business owners to access a 'cash advance' based on their future credit and debit card sales.

The announcement follows a survey commissioned by Worldplay which found that one in three small business owners reported difficulties in securing loans from banks. The analysis, which was carried out by YouGov, surveyed 1,000 small business owners across the UK.

Read more: Global e-commerce boom boosts Worldpay before merger as UK spending lags

The Worldplay scheme, which was launched in 2015 in partnership with Liberis, has already granted funding in excess of £50m to UK businesses. Funds can be made available to businesses in as little as 72 hours.

Chris Andrews owns cheesemaker Blacks Cheese and has utilised the Worldpay program to help with stock purchasing. “Worldpay Business Finance became an alternative method of funding the business at a time when we needed it instantly and it was delivered within a matter of hours,” said Andrews. “It’s now part of our financial reckoning...We know how it works, we know how it funds us - it's paid off for us.”

Worldpay’s research has also revealed that businesses under five years old are just as likely to select alternative finance methods to secure capital as they would approaching banks. Despite its growing popularity, however, the research also found that business cash advances are among the least known forms of funding, with only two per cent of businesses indicating they would use this form of finance in 2018.

Read more: Small firms look askance at bank borrowing as alternative finance rises

"Worldpay Business Finance was created specifically with the unique needs and structure of small businesses in mind – it’s flexible and it’s fast,” said Steve Newton, executive vice president of Worldpay UK and Europe. “Over the next year, we’ll make it easier to access the scheme by increasing call centre and online support to enable Britain’s small businesses to thrive.”

Related articles