Credit Card Factoring and Other Funding Advice for all Stages of Your Business

Starting Up

Venture capitalists, angel investors, SBA loans, personal savings and friends & family are all suitable resources for startup funds.

Credit card factoring, unfortunately, is not a suitable method for funding a startup business. This is because providers approve businesses based on their proven track records. Startup businesses, however, have not yet developed a track record. Business cash advance providers need to see at least four months of steady credit card sales, totaling at least $3,500 a month in order to advance a small business owner. This is to ensure that the business will be able to repay the advance and the advance will help, not hurt the business.

Maintaining

You’ve secured the cash you need to startup your business and your doors are finally open. It should be smooth sailing from here - right? Wrong. Often, small business owners find themselves needing even more business funds, even after their businesses have been up and running for years.

When the economy takes a (down) turn for the worst, business owners often struggle to find ways to make ends meet, cutting costs wherever they can, in attempt to salvage their businesses.

An easy way to get access to working capital to keep a business on its feet is credit card factoring. Small business owners who have owned their businesses for at least six months and process a minimum of $3,500 in monthly credit card sales may be able to secure up to $500,000 in business funds. The business owner cannot have any unresolved bankruptcies and there must be at least one year remaining on the business lease.

Expanding

Credit card factoring is also an excellent source of business financing for merchants who are looking to expand their businesses, mainly because there are typically no restrictions on how merchants are allowed to use business cash advances. Once the merchant’s application (consisting of a two-page application, the last four months of merchant statements, a copy of the business lease and a voided business check) is approved, the funds will be wired into the account of his/her choice in 7-10 business days. The merchant can use those funds to open an additional location or to increase the products and/or services that his/her business offers.

The advance is then paid off through the credit card factoring process. A small percentage of the business’s daily credit card sales is automatically deducted and applied to the business cash advance repayment, which normally takes 6-8 months.

Credit Card Factoring
Small business owners can get a free online quote.