When to Get a Credit Card Sales Advance

Getting an advance on your business’s future credit card sales can be a good idea or bad idea, but it’s up to you to know when it’s the best thing for your business. "The important question is how restaurant operators can make credit card receivable funding work successfully for them as a strategic business decision," as stated in a QSR article titled "Cash in Hand." This is true not only for restaurant owners, but for any merchants who process daily credit card sales and are considering getting a cash advance on those credit card sales.

Potential credit card sales advance applicants should understand that this method of business funding was specifically invented for small business owners who could not get business funds through other traditional methods (such as, through banks), due to low credit scores, blemishes in personal financial history, little to no collateral, etc. Therefore, most experts would advise that merchants who qualify for bank loans do not take out advances on credit card sales, unless they need funds in addition to an existing bank loan.

On the other hand, a credit card sales advance can save the business of a merchant who has found his/herself ineligible for bank funding. He/she may even find that this business funding method is very convenient for various reasons including requirements, repayment procedures, renewal opportunities and benefits.

Requirements
Credit card sales advance requirements differ from bank loan requirements, which is why they are much easier to qualify for. To be eligible for an advance, a merchant must have owned his/her business for at least six months and that business must process a minimum of $3,500 in monthly credit card sales. The merchant may not have any unresolved bankruptcies and the business should have at least one year remaining on the lease.

Repayment Procedures
Providers deduct a small percentage from daily credit card sales as repayment for the advance. This method eliminates the need for merchants to make fixed monthly payments and it goes with the flow of business. Most credit card sales advances are repaid within seven months.

Renewal Opportunities
Borrowers are allowed to renew an advance when they have repaid at least 60% of it. They can renew advances as many times as they wish.

Benefits
•48 hour approval
•7 day funding
•Unsecured
•Up to $500,000

Credit Card Sales Advance
Get a free online qoute today, if you are unable to attain business funds through traditional methods and you’ve decided that an advance on credit card sales can help your business.