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Credit Card Advance Financing

Written by: Ilya Bodner

Article Overview: For many businesses owners, borrowing money during tough times can be difficult. There is a new alternative to conventional lending practices that is becoming extremely popular. Credit card advance loans are often called many different names, but essentially all do the same thing: provide loans based on the business’s average monthly credit card generated sales.

Credit Card Advance Financing

CREDIT CARD ADVANCE FINANCING

For many businesses owners, borrowing money during tough times can be difficult. There is a new alternative to conventional lending practices that is becoming extremely popular. Credit card advance loans are often called many different names, but essentially all do the same thing: provide loans based on the business's average monthly credit card generated sales. The advancing company looks at the averages of 3-6 months of credit card generated sales and issues a loan based on averages and guidelines, typically a percentage of the highest month (i.e. 80% of January's $15,000 sales done through credit cards). In return, the advancing company asks the small business to change their credit card processing terminal to the advancing company account. Thus all future credit card sales received are processed through a controlled terminal source. There are no dangers running the transactions through the advancing companies terminal because all of the transactions are run the same, with uninterrupted service. The catch is that a percentage of the daily batch is held back by the advancing company as agreed. Usually the advancing companies hold 10-20% of the daily transactions. Thus, the payback varies each month based on the volume of the credit card sales.

To get approved for this form of financing is very simple, all you need is a verified credit card processing statement for a minimum of $5,000 for the past 6 months and a copy of bank statements to verify the deposits. In return, the small business owner gets financing quickly without the bureaucracy.

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Article Tags: bank statements, borrowing money, br, bureaucracy, businesses owners, credit card processing, credit card sales, credit cards, loans, payback, small business owner, tough times, uninterrupted service



Related Forum Posts
credit cards - Nana, you can get a credit card! Get a Secured Credit Card. It's a Visa or MasterCard which is a hybrid of a chequing/credit card. There are two types: 1. You put in an amount that you would like to have as your credit limit in $500 increments as security and you you can either pay in full each month or make minimum payments 2. You can have a credit card linked to your chequing account and you can spend only has much as you have in your chequing account. I recommend #1 and they both go to improving your credit limit.
Building credit - Credit is like reputations, I suppose. Takes a lifetime to build, and only a second to destroy.
Marketing and PR ideas related to a Credit Organization - Hello Everybody! I would be very grateful if you suggested some PR and Marketing ideas for a Credit Organization which target market is poor public who live in village and haven't any access to the internet. Thanx in advance
Offer Credit instead - I'm not sure if ChrisH was referring to this but i'll state it more expicitly .. Charge upfront and offer a refund of double the value back in "Credit" towards your Product or Service you have for sale at the end of the event.
grants for restaurants - Well friend I don’t have any idea about government grants for restaurants, but I will recommend that you may try on some banks who offer loans for small business where the government will have some guarantee. Beside that Restaurants business is very risky so some of banks who gave some Financing Loans they will look at on it if there is enough solid business plans.


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