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.

Article Source: http://EzineArticles.com/?expert=Gaston_Castro
http://EzineArticles.com/?Credit-Card-Advance-Loans---Still-the-Best-Alternative&id=3290315

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!

A Thought About Credit Card Advance Loans and the Coming Holiday Season

For anyone who's reading this and thinks that it is too late plan for the approaching season, I've got some good news: It only takes about a week for your credit card advance loan to get processed, so you have plenty of time to purchase new inventory.

Don't get left out of the shopping season because you are unable to get a bank loan. Take advantage of how fast and easy it is to get a cash advance for your business.

Purchasing inventory is one of the best uses for a credit card advance and there is no better time to take advantage of it.

Just a thought.

Beat out your business competition with a credit card advance loan

I know business is tough out there. Believe me; I hear it from my customers all the time. So many of them are struggling just to keep their doors open, let alone get ahead. There is one thing I’ve noticed; those who take the opportunity to invest in themselves, come out on top.

What many businesses do when things slow down is to begin cutting corners or cut back on things like marketing.  I understand this is human nature but this is precisely what we should not be doing. We should be doing the exact opposite in many cases. Rather than cut back on our marketing efforts, we should expand them. Rather than cutting corners on service, we should add additional services free of charge. Believe me, customers will respond in a very positive way.

The problem is that when things begin to slow down; we don’t have as much working capital to do these things. No problem… you can always take out a business loan. If you are having a hard time getting a business loan, you can always get a credit card advance loan (or merchant cash advance). The chances of you getting a credit card advance are much greater.

What is a credit card advance loan?

For those who don’t know; a credit card advance is a business loan alternative that is much faster and much easier to qualify for. Not only is it easier to obtain; it is easy to pay back. I advise you to look into one to see what it’s all about.

With a credit card advance you can get funded in about 7 days. You can use the money for anything you like such as;

• Marketing campaigns
• Purchasing inventory
• Expanding your location
• Fixing up your current location
• Catching up on bills

In fact; there are no limitations on how you use the money, although I strongly urge against using the money for anything will not promote business growth.

Bottom line: People like winners. They like doing business with someone who they feel is successful. If you begin cutting corners; it could make a negative impression that will be difficult to overcome.

If you have ever considered getting a cash advance and would like to learn more; I invite you to CLICK HERE to discover how a credit card advance can help your small business reach its desired goals.

I am thankful that my Business Got a Second Chance with a Credit Card Advance

This has been a tough year for businesses. Actually, it has been one of the toughest years in decades. Thousands of businesses have had to shut their doors for forever.

I suppose it is easy for me to say that if they were able to get a bank loan they could have saved their business. I don’t know if that is true for all of them, In fact I sincerely doubt it. But I can tell you with absolute certainty that a business loan could have helped many of these businesses.

The problem stems from the banks unwillingness to loan money during a week economy; which completely exasperates the problem even more. I’m not going to blame the banks. They need to protect themselves... it is what it is.

Fortunately there is a way to get around banks when it comes to getting working capital for your business. What many businesses have already discovered is a credit card advance (or merchant cash advance). It is a way to get working capital much faster and easier without going through the bank.

What is a credit card advance?

It is a form of receivables factoring that uses your Visa/MasterCard sales as the basis of a cash advance. Receivables factoring has been around for centuries, but getting a cash advance against your future credit card sales is something new. What’s more; they use your credit card processor as a means to pay them back. It is for that reason that they are able to fund so many businesses that would otherwise not be eligible for a loan.

I can say with absolute certainty that a credit card advance has helped thousands of small business owners keep their business when they would have surely gone under in these tough financial times.

We receive letter from happy merchants all the time. I want to share with you a letter we got recently that sums this up pretty nicely;

Thank you so much for believing in us. After getting turned down for a loan yet again, I almost stopped believing in myself. This has been a tough year for us and we just needed money to get us through to Christmas (our busy season). We were behind on so many things, I’m sure that we would have had to close if it weren’t for the cash advance.

Happily we were able catch up on past due bills and purchase the inventory we needed to get ready for the Christmas season.

Thank you for believing in me,
Shawna Hudson – Fort Worth, Texas

All I can say is; you are welcome Shawna. It was our pleasure.

Why a Credit Card Advance is Also Called a Bad Credit Business Loan

Unlike a business loan from a bank; a credit card advance can still get working capital for your business, even if you have bad credit. And you can do this even during the current so-called credit crunch.

What makes a credit card advance (also called a merchant cash advance) different than a business loan is that rather than being dependant on your credit score as the basis for loan approval; a merchant loan provider looks at your business’s sales transactions as the main determining factor for your cash advance.

How it works

A cash advance providers looks at your proven track record of Visa/MasterCard transactions from the past few months and gives you an advance based on those figures. A typical cash advance is 2.5 times your monthly credit card sales. So if your average Visa/MasterCard sales are $10K; you could be qualified for $25K.

Of course there are other variables involved in determining the amount of money you will receive; but this is a pretty good rule of thumb.

What makes these so different than a typical bank loan and how they are able to fund you when the banks have turned you down, is the way in which you pay it back.

Before they transfer funds into your bank account; they will need to set up your processor to automatically set aside a percentage of your daily transactions to pay back the cash advance. There is a great deal of care taken to insure that they never take out more than your business can comfortably afford. After all; because there is no collateral involved, they could stand to lose a lot of money if you go out of business.

Because they use a percentage of your Visa/MasterCard transactions, you pay back less when business is slow. This creates a flexible payback structure that goes with the natural flow of your business. This also helps to insure a successful payback.

Advantages of receiving a credit card advance over a bank loan

Aside from actually getting funded, there are many advantages to receiving a merchant cash advance. Some of these advantages include;

• 90% approval rate
• Approval takes 24-48 hours
• Typical funding takes about 7 days
• No collateral required
• Receive up to $500K
• No restrictions on how you spend your money
• Create an environment of 24 hour funding

As you can see, there are many benefits to receiving a merchant cash advance. Use the following link If you are interested in getting a quote or perhaps learning more about a credit card advance.