Avoid Credit Card Processing and Business Loan Problems


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Home \| Business \| Small Business Avoid Credit Card Processing and Business Loan Problems By: Stephen A. Bush, Posted on: 2007-07-11 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 thriving merchants periodically need more working capital than they can obtain from a bank business loan. One of the most critical business financing tasks for any business is to make sure that short-term cash needs are fulfilled. This is frequently difficult and sometimes impossible for the average business. 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. Credit Card Processing and Credit Card Financing 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. Business Loan Recommendations for Credit Card Processing and Business Cash Advances Merchants should be aware that there are at least ten serious difficulties that they need to be prepared for before obtaining a business cash advance. These problems are described below to help businesses avoid these common merchant cash advance and credit card processing obstacles. After each potential problem is described, a suggested credit card processing and credit card receivable factoring solution is provided. (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 Processing and Credit Card Financing Obstacle to Anticipate and Eliminate: Fees charged up-front. Recommended and preferred credit card factoring requirement: Zero up-front fees. (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 Factoring and Credit Card Processing Difficulty: Pay off the business cash advance with required fixed payments. Suggested merchant cash advance and credit card receivables requirement: No fixed payment requirement. (6) Credit Card Factoring and Credit Card Processing Difficulty: Pay off the business cash advance over a fixed term. Suggested merchant cash advance and credit card receivables requirement: No fixed term for repayment required. (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) Business Cash Advance and Credit Card Processing Problem to Avoid: high credit scores (680 to 700 or higher) required to qualify. Preferred and highly recommended business cash advance requirement: Credit scores of 500 or better. (9) Credit Card Processing and Credit Card Financing Obstacle to Anticipate and Eliminate: $50,000 maximum business cash advance. Recommended and preferred credit card factoring requirement: $300,000 maximum cash advance. (10) Business Cash Advance and Credit Card Processing Problem to Avoid: 12 to 24 months of documented credit card sales of $12,000 to $25,000 or more required. Preferred and highly recommended business cash advance requirement: 6 months of $5,000 or more. Can the Ten Credit Card Factoring Obstacles Discussed Above Be Avoided in All Cases? Absolutely. There are credit card financing programs which preclude all of the difficulties listed above. It is not prudent to accept any of these ten obstacles to receive a merchant cash advance based on credit card sales and credit card processing activity. It would be a rare situation for all of these potential problems to be of primary importance to a business owner. Most commercial borrowers will encounter several of these problems if they are evaluating business cash advance programs that use credit card processing and credit card financing. Copyright 2005-2007 AEX Commercial Financing Group. All Rights Reserved. Article Source: http://www.allthebestarticles.com About S.A. Bush: Steve provides candid working capital and commercial mortgage advice. Free AEX series of Working Capital Loan and Church Loan reports Get your own completely unique content version of this article. Please Rate this Article Not yet Rated Click the XML Icon Above to Receive Small Business Articles Via RSS! 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