How do you pay back a credit card advance?

Aside from being able to fund a much larger percentage of those who apply; one of the major differences between a credit card advance and a traditional loan is in the way in you pay them back.

We all know that when you get a bank loan, we pay back a fixed amount each month until the loan is paid back. All of the interest is already added into the loan payments.

A credit card advance is very different.

In order to fund more people; they had to figure out a way to remove some of the risks associated with lending money. How they did that is what makes this type of funding so unique.

The money is advanced based upon the amount of credit card sales your business does. Once you are funded, a small percentage of your credit card sales is automatically used to pay back the advance. This is done directly through the processor each time you batch out.

Many merchants prefer this to writing a check each month. One of the reasons is because there are never any late fees if you are late or forget to make a payment.

One of the reasons that this type of funding has been so successful is that since a percentage of your daily credit card sales is used; the amount you pay back each day is directly correlated to the amount of sales you do for the day. Simply put; if sales are slow, you end up paying back less.

This flexible payback structure is one of the cornerstones of their success. It is also why they are able to fund a much higher percentage of those who apply.

Credit Card Advance Loans - Still the Best Alternative

Credit Card Advance Loans - Still the Best Alternative
By Gaston Castro


In attempt to pull the country out of a recession, get people spending again, rejuvenate home sales, lower the unemployment rate and keep small businesses alive, various programs have been developed. Some have been successful and others have served as lessons learned.

Owners of gas guzzlers were offered cash for clunkers to be used towards the purchase of a new, more fuel efficient vehicle. First time home buyers are being offered tax credits and the Small Business Administration developed the American Recovery Capital (ARC) loan program, in attempt to boost lending to small business owners who've been having difficult times securing bank funds. Now, however, according to Business Week, Senator Olympia Snowe (R-Me.) is pushing to end the program she helped create.

According to the office of Management and Budget, the loans are projected to default at rates approaching 60%. Based on these statistics, one might say that the credit card advance loan is a better option for small business owner who need business financing, but don't qualify for traditional bank loans.

The ARC loan program was criticized by small business owners for requiring too much paperwork and having minimal bank participation. Credit card advance loans, on the other hand, only require a two-page application and instead of only $35,000 (the ARC loan limit), credit card advance loan providers have made business funds of up to $500,000 available to small business owners across the United States and in Canada as well. Plus, merchants only have to meet minimal requirements to qualify for credit card advance loans.

$255 million dollars were set aside for the ARC loan program. However, as of now, only about $131 million dollars has been distributed.

Regardless of the fate of the ARC loan program, qualified merchants will continue to have access to business funds through credit card advance loans.

Get a free online quote today!


Gaston C. writes articles about Credit Card Advance loans for Merchant Resources International.

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If you have decent credit, you might want to consider a government sponsored SBA loan

In light of the current economic crises, the Obama administration has taken steps to make it easier for small business owners to gain access to working capital through their SBA program.

Of course not everyone is eligible, and it is not as easy to get as a credit card advance; but it is an alternative that may be worth looking into.

You can find out more about this funding program by visiting the government website at; http://www.sba.gov/financialassistance/borrowers/index.html

The Pitfalls of a Merchant Cash Advance.

Inc Magazine wrote an article a while back about some of the more negative aspects of the Merchant Cash Advance industry. Although it shows a very negative one-sided view of the industry, I still think it is important to share both sides of the issue.

The article points to a case where a merchant was mistreated by a merchant cash advance provider. I assure you that is the exception to the rule. Most providers are ethical business people who follow strict guidelines.

It just goes to show you how important it is to do some background checks of your own before handing over your sensitive financial information to them. You can do that at the Better Business Bureau's web site.

The article is here:

Thanks, But No Thanks

You Need Money, Your Credit is Bad and You Can't Get a Business Loan... Now What?

So, you need money for your business and the bank won't give you a business loan because you have bad credit? No problem... you would be surprised how many times I am approached by business owners who are dealing with the exact same problems.

They come to me because I offer a service called a credit card advance. It is a business loan alternative that is much easier to qualify for, and much faster to get funded. Thousands of businesses take advantage of a merchant cash advance every year.

The reason that we are able to fund you even after you've been turned down by the bank is because we put a lot more emphasis on your business's sales history than on your personal credit history. If you have a consistent history of sales; chances are that you will qualify for a merchant cash advance.

Get funded in a fraction of the time it takes the banks

Another reason people come to me is because they need the money much faster that it would take the banks to process their loan. A cash advance can get you funded in less than a week in many cases, and never more than 10 days. When you compare that to how long it takes a bank to process a loan request; you can understand why they come to us.

There are many differences and many advantages to getting a merchant loan. I invite you to use the following link to discover how a CREDIT CARD ADVANCE LOAN can help your business.

How to be Sure That You are Getting the Best Credit Card Advance Rate

I'm sure you know that there are many credit card advance loan companies out there who are willing to fund you. Some offer better serivces, others have better prices. But how do you know which one offers the best serivce at the best price?

There is a relatively new service out there that maintains a database of merchant loan companies called businesscashadvancequote.com. They keep track of customer complaints and deletes those who don't keep up with their standards of service and professionalsim.

To insure that you get the best price; they submit your quote request to the lender that best matches your requirements. They do this in a way the has the least amount of impact to your credit (unlike many brokers).

You can be sure to get the best possible rate from a reputable lender. This is a great serivce for anyone looking into getting a business cash advance.

Blog Action Day and Global Warming

Instead of writing about a credit card advance loan,  I thought I would take the opportunity to write about something that we can all do to help stem the tide of global warming. Something that I do is spend one day a week without eating meat.

It is very easy for me because I like vegetables. It is also easy for me because I am aware of the impact that raising cattle for human consumption has on our planet. Not only does the methane released from cattle contribute to global warming, but all of the land it takes to grow the hay to feed them can be used to grow food for the entire planet.

Spending one day without meat is a simple way to help. It also helps feed the world and makes us a little healthier too.

Good luck!