Does Credit Card Receivable Financing Work Well?

As a U.S. small business owner, you may be looking for ways to keep your company running during uncertain economic times, or even just a slow sales season.  Maybe you’re looking to expand and you found the perfect opportunity, but a traditional bank loan or business credit line is not an option due to lack of capital or the high restrictions currently put on National and local banks.  An unsecured business cash advance may be exactly what you are looking for.

Unlike a traditional small business loan, there is no interest paid on a merchant cash advance , and approval is based on simple and easy to understand criteria. To put it simply, a merchant or business cash advance is made with the promise of your company’s future sales.  Typically, as long as your business has been open for a span of one year and you experience healthy sales trends, a business cash advance is a much more friendly and probable borrowing option for you.


Advance Funds Network will advance your business the money you need with much less paperwork, time, and restrictions than a small business loan drawn from a bank. Typically under $300,000, a merchant cash advance is most commonly repaid by splitting a portion of your credit/debit card sales with the lender. A daily, weekly, or monthly payment can also be set up as well if the business does not accept credit cards as a form of payment.


Also, unlike a loan, repayment of a merchant cash advance is flexible depending on your sales.  This means that if you go through a slow business cycle, there is no obligation to pay a certain amount over a particular time period.  Therefore, if you only do $2,000 in credit card sales one month compared to your typical $5,000, the lender will still only take the agreed upon portion of all sales involving a credit/debit card.  By taking small deductions from daily business transactions, you will still have the luxury of having the majority of your regular income without having to worry about making a fixed monthly loan plus any interest payments.


One thing to be aware of concerning a business cash advance is that because your receivables account is set up with few limitations and is fairly seamless to repay, fixed rates on cash advances tend to be a bit higher than the typical small business loan.  However, companies like Advance Funds Network offer competitive products that will keep your business running in your time of need, or even help you purchase capital for expansion.  Also, the rate you will pay is based on the risk analysis algorithm used to analyze the business’ default risk.


The most important thing for you to remember is that with merchant cash advances, you have the option of affording what your small business needs even when the bank doesn’t approve you for a loan or  business credit line.  For more information on credit card receivables financing and small business loans for those who have bad credit, please read about companies like Advance Funds Network on the web at


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