Britain’s small businesses will be able to fund their growth through a new financing scheme launched by Worldpay, in partnership with Liberis, the UK’s leading provider of cash advances to small businesses.

Worldpay Business Finance will offer Britain’s small businesses the ability to take an unsecured cash advance based on their future credit and debit card sales, providing a flexible way for this key part of the UK economy to grow and succeed.

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 don’t 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.

Worldpay’s move into alternative finance comes as small business owners continue to face significant obstacles in funding their growth. Research shows that 50% of loan applications from first time SME borrowers are rejected.

Dave Hobday, UK Managing Director Worldpay, said: “We’ve been concerned that the lack of affordable funding available to Britain’s SMEs is stopping great businesses from growing and thriving. Unlike traditional loans, the flexibility of Worldpay Business Finance means that payments can be structured in a way that better suits the models of small businesses”.

“We work with around 280,000 small businesses in the UK and they make up a large proportion of our customers, so we want to help them flourish. By letting companies access cash relating to their future earnings, we are giving them the chance to grow in line with their ambition and potential.”

Rob Straathof, Managing Director Liberis UK, said: “We’re excited to be partnering with Worldpay to expand flexible funding to even more small businesses across the UK. We understand how hard small businesses work and how important a fairly-priced and flexible credit solution is to help companies grow. Our flexible payment system means repayments are relative to income and there are no hidden fees or charges.”

Independent jeweller Martin Purdy, is one Worldpay customer who found that a cash advance was the best way for him to continue to grow his business, Purdy’s of Brighton.

“I get offered beautiful pieces of pre-owned jewellery valued at a few pounds to many thousands almost on a daily basis so I need available cash.  I can’t afford to miss an opportunity.  Sellers are paid immediately, but it can take weeks for the item to sell, so I need funding that suits my cash flow”.

“Worldpay’s new business finance really appealed to me because I only pay it back when I make a sale through my Worldpay card machine.  So if business is slow, I don’t have to find a chunk of money for repayments.  The process was simple and quick and I received the funding within a week. The funding has enabled me to differentiate my offer from other jewellers in the town by stocking unique and rare pre-owned jewellery.  It’s been a huge benefit to the business.”