How? Credit Card Receivables!
What is Credit Card Receivables? It is advancing funds to a merchant or other small business based on the pass six months of credit card receivables.
Once a company has been approved (simple qualifications) for credit card receivables financing, they can be financed within 7 to 10 days.
The financing cost can be as low as $1059 for every $10,000 advance over the standard term. In addition, the flexible payments make this arrangement ideal for small business owners. The payment is a percentage of Visa and MasterCard sales and not a fixed amount. If the business is doing well, the loan is paid back faster. If sales are slow, the owner is under no pressure to make a fixed payment.
Variations in this type of Financing can accommodate small business owners. The downside of this type of transaction is most Lenders want the Merchant to use their credit card system. For many, that not too much to ask when $50,000 will be wired into their bank account within 7 to 10 days.
The credit card receivables financing company will usually advance 70 percent to 150 percent of a merchant's average monthly Visa/MasterCard volume. The loan amount is paid back with a six month period and the owner can choose to renew the loan if needed.
This article was written by Cassandra Ingraham, an Accounts Receivable Broker who specializes in government and merchant funding. To learn more visit, http://www.taxeswilltravel.com
No comments:
Post a Comment