Still Can’t Get a Loan? Try Credit Card Factoring
Written by Administrator on August 9th, 2010Still Can’t Get a Loan? Try Credit Card Factoring
With all the bailouts, stimulus plans and other efforts to get banks lending again, small business owners are anxiously waiting for their piece of the pie, but it seems it is taking longer than many small business owners had hoped.
“Big companies are rushing to issue stocks and bonds to suddenly hungry investors. But credit is still scarce for thousands of mostly smaller companies that rely on bank lending,” writes Cari Tuna in a Wall Street Journal article “Small Firms Wait for a Credit Thaw.” She adds that according to the Federal Reserve’s April bank loan officer survey, 40% of U.S. banks had tightened lending standards and only 53 had actually “eased standards on loan terms.”
Even though banks may not be lending as liberally as so many wish they were, small business owners still have the opportunity to secure business funds, they just have to take alternative routes and utilize innovative methods, such as credit card factoring.
Those who decide to use credit card factoring can sell their businesses’ future credit card sales and get up to 0,000 in advance. They can then use this money to purchase inventory, buy advertising, expand, etc. – there are no restrictions on how credit card factoring funds can be used.
Credit card factoring is great to use in place of bank loans for three main reasons: requirements, process and repayment.
Requirements
Business processes at least ,500 in monthly credit card sales Applicant has owned business for at least six months Owner has no unresolved bankruptcies At least one year remains on the business lease
These requirements are minimal in comparison to those of a small business loan. In fact, small business owners do not even need to have excellent credit scores to utilize credit card factoring.
Process
It only takes a few easy steps to start credit card factoring. After completing a short application and submitting a few documents, applicants can have business cash in 7-10 business days.
Repayment
The repayment is very likely the most unique part of credit card factoring. When customers pay using credit cards, a small percentage from the sale is automatically deducted and put toward repayment. It usually takes about 6 to 8 months for a business cash advance to be repaid through credit card factoring.
Credit Card Factoring offers free quotes to small business owners.
Chrystal King writes articles about Credit Card Factoring , the alternative method of business funding, for Merchant Resources International.
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