Credit card factoring has become an increasingly popular method of funding for small businesses who have had problems receiving loans from banks or other financial lenders. Here is the way credit card factoring works:The provider of the funds considers the history of credit card transactions by the small business over the prior several months, including how much the business processes and the volume of sales The provider and the business agree upon a percentage of the future credit card sales that will be paid back to the provider each month The small business is given a cash advance which they can spend on any expense related to their business Each month, the agreed-upon percentage is paid back to the provider via the credit card transactions between the business and its customers Because the repayment is a percentage of the money earned through credit card sales, the provider can be paid back less during slow months and more when business is booming.
Credit card factoring – also known as a business cash advance – is helpful for businesses who rely on credit cards and could use the additional cash flow when waiting for credit card transactions to process. The business’ credit score is not a determining factor in whether or not that business will be approved for a credit card cash advance.Apply now! We will get back to you within one business day.