Business Cash Advance and Your Own Business

Melanie James — Thu, 10 Dec 2009 00:18:17 +0000

When in need of short term financing assistance, a business owner can apply for a merchant cash advance. This article talks about the process of business cash advance loan, also known as credit card account receivables factoring or credit card financing.

if you're in need of money

What is Business Cash Advance?

Business cash advance is available for entrepreneurs who have a merchant account or who accept credit card payments.

You can use your credit card receivables to obtain cash from a factoring lender.

Most lenders offer 80% cash advance from the amount of the receivables submitted. The rest of the funds will be given when the cardholder completes payment.

This method is ideal for keeping the cash flow steady. Instead of applying for a traditional business loan, a merchant can use the sales made from credit card-paying customers to get cash right away. Instead of waiting for the 30-day grace period given to cardholders, a merchant can instantly utilize the funds to cover for business expenses.

Points to Ponder For Small Business Owners

Who are qualified to get a business cash advance loan? Factoring lenders often require that the business meets the minimum value of credit card sales each month. The minimum amount may range from P2, 500 and above. If your credit card transactions do not reach this quota, you may consider other business financing options.

It is important to choose a legitimate cash advance lender. Watch out for lenders who offer instant approval online as not all lending companies that you can find on the web can be trusted. Spend time and effort doing research and make sure that you clearly understand the process.

A typical business cash advance application can be processed within two to four weeks. Take note that you should not be required to submit an upfront payment to get approved.

If you are not familiar with how merchant cash advance financing works, you may seek help from a business marketing expert. You can also ask for recommendations from other entrepreneurs or business owners in your community or State.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Managing Your Working Capital Through Credit Card Factoring

Melanie James — Tue, 09 Jun 2009 04:35:15 +0000

If you are an online seller and you accept credit card payments, you should consider a method of business financing known as credit card factoring. Let’s discuss how credit card factoring is done and how it can benefit your online business.

How Credit Card Factoring Is Done

Have you heard of accounts receivables financing? This method of business financing is done by selling existing invoices to a cash advance lending company to acquire cash. Thus, the business owner won’t have to wait for the customer’s payments to start using the funds.

Lenders usually offer 80% cash advance from the amount of the invoice submitted. Once the lending company receives the complete payment from the customers, the business owner can receive the other 20% cash from the invoices submitted.

In concept, credit card factoring works in the same way. The only difference is that customer payments will not be sent in cash but through credit card. By selling credit card transactions, a business owner can utilize its profits or sales without having to wait for a 30-day repayment period.

Many businesses today turn to credit card factoring because it is easier to avail than traditional business loans. Instead of waiting for a few months to get approved for a business loan, an online merchant can get financing help from a credit card factoring lender at a sooner time.

Business credit isn’t required to get approved for a credit card factoring financing. Whether or not you have good credit history doesn’t matter. If your business reaches the lender’s minimum quota of credit card transactions each month, then you can apply for a credit card factoring loan.

How to Utilize Credit Card Factoring

The money you receive from your factoring lender can be used for many purposes. If you need to repair one of your machines or purchase a new machine in a hurry, credit card factoring can help you.

If you need to hire additional workers for this season to meet your customer orders, you can use the funds to pay for new workers without delay. Credit card factoring is also a great help when financial emergencies arise.

Because credit card factoring involves fast and easy processing, it is still a viable option even if you’ve already applied for a bank business loan. While waiting for your loan to get processed, you can use your credit card factoring loan to start your projects right away.

Use Factoring Wisely

Just as caution is needed in obtaining other types of business financing loans, business owners must exercise discretion and care before applying for a credit card factoring loan as well.

See to it that you’ve studied the Terms and Conditions of your lender before signing up your contract. It is important to choose credit card transactions only from your trusted customers to ensure payment.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Merchants Center.com » Traditional Business

Business Cash Advance and Your Own Business

Managing Your Working Capital Through Credit Card Factoring