Avoid Credit Card Processing and Business Loan Problems
by Stephen A. Bush
Credit card processing and business loan strategies are closely connected in many ways. Business owners should not overlook the substantial working capital benefits which will accrue to their business by effectively coordinating credit card factoring and credit card processing. These benefits will increase measurably if a number of common business cash advance and credit card processing problems can be successfully avoided.
Even the most successful businesses regularly need more financial resources than they can get via a working capital business loan. Perhaps the single most important commercial loan goal for any business is to successfully meet day-to-day cash requirements. This can be an impossible task if working capital is not properly managed.
Effective and timely use of a prudent working capital business loan is an increasingly critical business financing tool when a business is faced with a short-term cash shortfall. Business owners should be forewarned that there can be a substantial number of potential difficulties in coordinating credit card processing and credit card factoring.
Using Credit Card Receivables and Credit Card Processing
Up to $300,000 can be obtained from a business cash advance based on sales volume and future credit card sales for a business. Most business owners can easily document sales volume and credit card processing activity, so sales volume and credit card processing activity becomes a financial asset to the business.
Ten Business Cash Advance Problems And Recommended Business Loan Solutions
Before employing this strategy, businesses should realize that there are several recurring potential problems that they need to anticipate. Ten common credit card receivables problems that business owners should avoid when employing this strategy are highlighted below. Preferred/Recommended business cash advance requirements are shown after each potential credit card processing and credit card financing problem.
(1) Business Cash Advance and Credit Card Processing Problem to Avoid: Closing costs. Preferred and highly recommended business cash advance requirement: No closing costs.
(2) Credit Card Factoring and Credit Card Processing Difficulty: Initial up-front fees. Suggested merchant cash advance and credit card receivables requirement: Up-front fees not required.
(3) Credit Card Processing and Credit Card Financing Obstacle to Anticipate and Eliminate: Collateral required. Recommended and preferred credit card factoring requirement: No collateral required.
(4) Business Cash Advance and Credit Card Processing Problem to Avoid: Financial statements required. Preferred and highly recommended business cash advance requirement: Financial statements required only when a large business cash advance is desired.
(5) Credit Card Processing and Credit Card Financing Obstacle to Anticipate and Eliminate: Required to pay off the merchant cash advance with fixed payments. Recommended and preferred credit card factoring requirement: Fixed payments not required.
(6) Business Cash Advance and Credit Card Processing Problem to Avoid: Fixed term to pay off the business cash advance. Preferred and highly recommended business cash advance requirement: No fixed term for repayment.
(7) Credit Card Processing and Credit Card Financing Obstacle to Anticipate and Eliminate: Several years in business required to qualify. Recommended and preferred credit card factoring requirement: one year in business.
(8) Credit Card Factoring and Credit Card Processing Difficulty: Credit scores of at least 680 required. Suggested merchant cash advance and credit card receivables requirement: Acceptable credit scores of 500 and higher.
(9) Credit Card Factoring and Credit Card Processing Difficulty: Business cash advance limited to $50,000. Suggested merchant cash advance and credit card receivables requirement: Maximum cash advance of $300,000.
(10) Credit Card Processing and Credit Card Financing Obstacle to Anticipate and Eliminate: Up to 24 months of credit card sales required. Recommended and preferred credit card factoring requirement: six most recent months with sales of at least $5,000.
Can Credit Card Financing Difficulties Described Above Always Be Eliminated?
There are viable credit card receivables programs which avoid all of the problems described above. It is not necessary to accept any of these problems in order to obtain business cash advances based on future credit card sales.
It is not likely that all ten of the described obstacles will be pertinent for all business owners. Business borrowers are likely to experience several of these problems if they are considering a business cash advance that uses credit card factoring and credit card processing.
Copyright 2005-2007 AEX Commercial Financing Group. All Rights Reserved.
Stephen Bush provides candid advice for
commercial loan - commercial mortgage and
working capital loan - church loan situations Click here for other
unique 'credit card processing' articles.
