What is Credit Card Factoring?

The concept of receivables factoring has been around for centuries. You are basically selling a portion of your future sales and receiving the money up front.

Credit card factoring takes this a step further. They look at the past few months of your credit card sales and establish an advance amount based on your credit card sales history. Before they give you the money; they set up your credit card processor to automatically transfer a small percentage of you Visa/MasterCard sales to pay back the cash advance. Because they use your processor to automatically pay back the advance; they are able to fund businesses that banks won’t touch.

Aside from a high approval rate, there are many advantages to using credit card factoring to help fund your business.

High approval rating: As previously mentioned, credit card advances have a very high approval rate. In fact, a vast majority of businesses that apply get funded.

No collateral: Many small businesses get turned down by the bank because they do not have enough equity to use as collateral. Merchant loans don’t require collateral. Many of the businesses that were once considered to be unqualified are now able to get funding.

Easy application process: Merchant loans have completely streamlined the process of acquiring working capital. Most business owners already have everything they need to apply for a merchant loan right in front of them.

Easy payback structure: What really set this type of funding apart from bank loans is the way in which the money is paid back. Instead of writing a check each month to the bank; the cash advance provider sets up your credit card machine to automatically deduct a small percentage of your daily credit card sales.

What this does is to minimize the risk of default. This is how they are able to fund businesses even after the banks have turned them down. There are several advantages to this;

No more checks to write
No more late payments
Flexible payment structure

Because a percentage of your credit card sales are used; you pay back less on days that are slow. This creates a flexible payment structure that goes with the flow of your business and helps to take away the stress associated with having to keep up with loan payments even when business slows down.

Get more information

To see if you qualify for our bad credit business loan, simply fill out this simple form. We generally approve your business cash advance within 24 hours and get you funded in a little as 5 business days. Contact us today and learn how we can unlock the power of one of your greatest assets; your future credit card sale

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