What is Credit Card Factoring?
Credit card factoring is one of the alternative ways for businesses that accept credit card payments to get fast access to cash. This method has been increasingly gaining acceptance, especially among businesses that are getting concerned about their fiscal position. Current cash flow is not that profuse like before, which is why some of these businesses have to seek out alternative sources in order to finance any expansion or augment their business capital.
In the past, all these businesses have to do is to apply for a loan with a lending institution and more often than not, they usually get access to the needed money. Ever since the global financial crisis wreaked havoc on the economy, however, most of these lending institutions are getting jittery in readily approving loans. This is particularly disastrous, particularly with businesses that do not have enough collateral to secure the loan. Fortunately, credit card factoring offers these businesses a way out of their financial distress by allowing immediate access to cash whenever they need them.
How Does Credit Card Factoring Work?
If your business accepts credit card payments, then you are eligible to apply for credit card factoring. Typically, the financing company will examine the monthly average of your business credit card receipts and then use that data to determine how much cash can be advanced to you.
Depending on the monthly average of your credit card receipts, factoring companies may be able to grant you an advance of 80% to 90% of the total value of the receipts.
This means if the monthly average of your credit card receipts is at $10,000, then you can expect to receive an advance from $8,000 to $9,000.
- Retail Stores
- Postal Offices
- Construction Companies
- Call Centers
- Online / Web Businesses
How long will it take to get the cash for my business
We are the only Credit Card Factoring providers in the country to offer cash the same day funding when applying for credit card factoring. Begin your online factoring application now, and an credit card factoring specialist will contact you before the end of the business day.