Merchant payment services is fast becoming a hot topic in the Irish pubs sector. Consumers are very quickly switching from using cash to card on even low-value purchases. Figures from the Banking & Payments Federation Ireland (BPFI) confirm that Irish people now spend more on their debit cards than they withdraw in cash from an ATM.

According to recent figures, in 2015 consumers in Ireland made debit card payments averaging €7,442 per head compared with €5,388 per head in cash withdrawals from ATMs. Card and mobile payments are widely expected to continue to increase across all sectors. This has had a significant impact on the pub sector. Many pubs are now reporting that card payments account for 40% and even as high as 60% of their total receipts.

Adding to this trend is the massive uptake in consumers using the quick pay-by-tap system removing the need for the customer to punch in their pin number. In fact, many pubs are seeing single drink orders being routinely paid for by card or mobile which, in a busy bar, is ideal for the publican.

Irish Pubs Global are very aware of this new “norm” and are partnering with an important new service to enable pubs to use their Merchant Services as a source of short-term finance for their business. Irish Pubs Global have partnered with innovative Irish company GRID Finance to offer publicans a Pub Merchant Cash Advance product which the pub pays back daily via a percentage of their merchant payments.

What is a Pub Merchant Cash Advance?

GRID’s Pub Merchant Cash Advance is a short term alternative finance solution that works with your business and its existing credit/ debit card machine. Depending on your average month’s card sales, the finance is given to you upfront, secured against your merchant receipts with repayments made as a percentage of your future card sales until you have repaid the full amount.

Finance of between €10,000 and €150,000 can be raised for any purpose including:

  • Purchasing new equipment

  • Refurbishing or expanding your pub

  • Emergency repairs

  • Purchasing stock

  • Helping with your cash flow

  • Training and recruiting new staff

  • Advertising

The small, daily, percentage-based re-payments system tailored for the pub industry has several distinct advantages. Repayments are very manageable, in fact most PMCA customers don’t notice any significant difference in their daily takings. If the business has a quieter day or week, then the repayments are less because it is percentage-based. If the business has a busier than average day or week and has higher takings, then the repayments towards paying off their loan is higher. There are no penalties for paying the loan off earlier than forecasted meaning what you expect to repay is exactly what you will pay.

It is a great way to find the cash injection your business needs without the lengthy time-frames or inflexibility associated with banks or other business finance providers. Approvals take between 24-48 hours with just four documents required:

  1. Most recent Financial Accounts

  2. Most recent Management Accounts

  3. 12 months’ bank statements

  4. 12 months’ merchant statements

Contact Kevin McParland to apply for a Pub Merchant Cash Advance today. Email: ipg@grid.finance or call: 086-2104584