Difficult economic conditions are affecting nearly every facet of America’s business community. High unemployment, deterioration of investment portfolios and overall lack of confidence in the economy are causing a “tightening of the belts” for most of the buying public. No one feels the pinch more than the small business owner; particularly those providing discretionary products and services. The life blood of any business is the availability of working capital. Operating lines of credit through local and national banks have been the traditional source of capital but the banks have tightened their belts as well. The small business owner is finding it next to impossible to secure credit lines from local and national banks without pledging significant personal assets.
Merchants that accept credit cards now have a source of working capital that transcends the underwriting restrictions and collateral requirements of bank lines of credit through credit card receipt advances. Categorically, this is not a loan. It is an advance up to $250,000 against future charged sales receipts. There are no upfront fees,no personal liability and no credit score or personal financial requirements. The advances are based entirely upon the historical card charged receipts of the business including Visa, MasterCard, American Express and Diners Cards. The basic requirement is that the business has been in existence for six months and has a minimum of $5,000.00 in charges per month. The maximum advance is typically 125% of monthly credit card receipts averaged over the previous four months. Practically every merchant who meets the basic requirements is approved and normally within 48 hour of submitting a one page application form. The entire process can be completed in less than one week. The funds may be used for any worthwhile purpose including:
- Reduce or retire debt
- Working capital in slower months
- Purchase needed equipment or merchandise
- Expand or remodel business
- Open new location
- Buy out partners
- Pay taxes
Approval Prior to funding the merchant will be required to provide the following documentation.
- Four complete credit card statements for each card accepted (All Pages)
- One complete bank statements (All Pages)
- Voided check with business name (to deposit funds)
- Copy of driver license (to verify signature)
- Signed funding contract
Repayment is accomplished through a deduction of a small percentage of the merchant’s daily charge receipts and there is no requirement to change card processors. There is no interest rate applied to the funds because the credit card advance is not a loan. Total repayment includes a previously agreed upon fee to the institution granting the advance and is collected as part of the daily receipt deductions through the card processor.
The Merchant Credit Card Advance Program is a terrific short term capital source and is available to business owners in all 50 states. It is a quick and easy practical solution to the working capital requirements of business owners with no upfront cost and is secured only by future charge receipts.