What is Credit Card Factoring?

We understand that many businesses are suffering with cash flow problems which can negatively affect their credit rating and cause even more problems, ultimately causing the decline or failure of their business.

Credit card factoring is a relatively new way for small and medium sized businesses with cash flow problems to get working capital, even after they've been turned down by the banks.

A factor is either a single investor or a business that offers money upfront to meet the company's cash flow requirements. It is agreed upon in advance that the money is to be paid back within a certain period of time. This is done through their credit card processor each time the business batches out.

A factor generally offers the business owner approximately two times the amount of their average monthly credit card sales, which is to be paid back in approximately 6-9 months.

Because they use a set percentage of the businesses daily credit card sales; they end up paying back less on slow days and more when sales are strong. And because this is done automatically through the credit card processor; there are no monthy bills and no late fee's.

What kind of business uses credit card factoring?

Any business that accepts credit cards is elegible for a merchant cash advance. Credit card factors look at a businesses sales history to determine their elegibility.

A credit card factor will not necessarily look at a business owner's credit history or score as reason to decline the merchant cash advance.

Another advantage is that while banks may take several weeks or even months to approve a loan request, a credit card factor can approve a merchant cash advance in a matter of days.

Get more information

To see if you qualify for our merchant cash advance, fill out this easy form. We approve most businesses within 24 hours and get you funded in about a week. Contact us today and we will show your how to unlock the power of one of your greatest assets; your future credit card sales.

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