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.

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

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