Squarespace Capital in the UK Guide
TL;DR:
- Squarespace Capital provides a Merchant Cash Advance (MCA) for UK-based merchants
- Repayments are flexible, based on a percentage of your sales
- There's a single flat fee, with no added interest
- Soft credit checks won't impact your score, but receiving funds does
- Payments are automated and linked directly to your sales activity
Squarespace Capital offers UK merchants a way to access future sales revenue upfront. This funding comes from YouLend and works by selling a portion of your future sales. Instead of fixed monthly payments, you pay back a percentage of your ongoing sales, which adjusts with your business's income levels.
Understanding Merchant Cash Advance (MCA)
A Merchant Cash Advance through Squarespace Capital gives you access to future sales revenue today. The funding comes from YouLend and involves selling a portion of your future sales.
Payments aren't fixed amounts. Instead, they're a percentage of your ongoing sales, which means they adjust with your business's income levels. When sales are strong, you pay back more. When they're slower, you pay back less.
Eligibility for Squarespace Capital
Your eligibility depends on your sales volume and transaction history with Squarespace Payments. You'll get notified if you're eligible through email or your Squarespace dashboard.
There's no application process to hunt down. If you qualify, Squarespace will let you know.
Financing Costs and Repayments
You pay a one-time flat fee, not recurring interest. This fee stays the same throughout the life of your advance.
Payments come out as a portion of your incoming sales, adapting to your business's earnings pace. The full fee is built into the repayment percentage, so there's no upfront cost to worry about.
Credit Checks and Personal Guarantees
Applying triggers a soft credit check, which doesn't affect your credit score. But if you accept the advance, that initiates a hard credit check, which will likely affect your credit score.
You'll need a personal guarantee from the business's director or owner to secure the advance. This is standard practice for business financing.
Adjusting Your Financing
Through the Finance Dashboard, you can adjust the advance amount using a sliding tool. This affects both the fee and repayment rate, so you can find the right balance for your business.
What Happens When Offers Expire
Offers are valid for 30 days. After they expire, your eligibility gets reassessed for possible new offers. There's no guarantee you'll get another offer right away.
Keep in mind that fluctuations in sales will affect your repayment timeline. Plan your finances accordingly and don't assume consistent repayment schedules.
FAQs
Can I pay back my Merchant Cash Advance early?
Paying early doesn't guarantee a new financing offer. Once your balance is settled, your eligibility for further offers gets reevaluated.
What happens if I miss a payment?
Contact Squarespace or YouLend immediately to work out potential solutions. Don't wait for them to chase you.
Is this financing available outside the UK?
No, Squarespace Capital's services are currently restricted to UK business holders only.
Jargon Buster
Merchant Cash Advance: An advance payment based on future sales, repaid via a share of those sales.
Soft Credit Check: A preliminary credit assessment that doesn't affect your credit score.
Hard Credit Check: A thorough credit evaluation that could influence your credit score and is visible to other lenders.
Wrap-up
Squarespace Capital offers a flexible financing solution for UK merchants that ties repayments directly to your sales performance. This makes it easier to manage than traditional loans since payments adjust with your business flow.
Before you commit, review your sales trends and consider speaking with a financial advisor about the potential impacts on your business. The flexibility is helpful, but make sure you understand how it fits into your broader financial picture.
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