Credit Card Factoring
Credit card factoring is another term used to describe a Merchant Cash Advance, or credit card receivable funding. While not technically a true form of factoring, a Merchant Cash Advance is a funding product that’s a solid and simple way for many small business owners to regain control of their financial direction.
A Merchant Cash Advance harnesses the strength of future credit and debit card sales. Factoring, on the other hand, capitalizes on existing but uncollected invoices. This is a small but important distinction, as it illustrates why credit card factoring is not the most accurate description of this product—credit card receivable funding is closer to the point. With a Merchant Cash Advance, you don’t have to make the sale before receiving a portion of it, which is not the case with factoring.
In a nutshell: factoring is tied to specific post-sale invoices, while a Merchant Cash Advance (which is sometimes called credit card factoring) is tied to a percentage of FUTURE debit and credit card sales.
But no matter what you call it, this is a unique and flexible financial option that can find many applications in a small business.
There are no restrictions on use, so this money can be used for anything from remodeling or advertising to paying taxes or opening a new location. Since this is not a loan or a form of business financing, it is quick and easy to apply. No personal collateral is needed, and there are no up-front fees.
Credit card factoring has been a growing industry that really starting gaining traction in the late 1990s. A funding product used by different business types in all 50 states, this is a revolutionary way for small business owners to access working capital as needed.
While referring to this funding product as credit card factoring might be a bit of a misnomer, one thing is undeniably clear: for small business owners seeking easy access to business capital, a Merchant Cash Advance creates opportunity.
Apply Now |
 |
Additional Resources |
|
Start the no hassle application process for working capital today with our easy online application form. You could have money within days!
|
|
|
