I have had a small business for the last two years. My product is a luxury, so there is no guarantee that my sales would continue to grow during the recession.
Year to date, my sales have dropped almost thirty percent over last year. When you account for my rent increasing twenty five percent and for inflation, my losses are significant.
My supplies were beginning to send notices on a continual basis asking for payment immediately. I could not blame them for demanding payment. They were in a similar position as me.
The recession was affecting them as well. I needed to find a source of funding that would not hinder my company’s growth or have a demanding repayment schedule. I asked many local business associates if they had any recommendations, and I heard numerous times that I should look into credit card factoring.
Credit card factoring is also known as a merchant advance or a cash advance for businesses. It relies on your daily credit card sales.
If my company is approved, the process is simple. All I would have to do is have around three thousand dollars in monthly credit card sales. If I meet that requirement, then the process becomes much easier.
I will then be qualified to receive cash within seven days. There is no fixed repayment plan either. The lender will automatically subtract a fraction of my daily credit card batch to pay off the borrowed amount.
I do not have to keep track of any payments, so that is extremely satisfying. I can use the funds I receive for whatever I need, so that helps me use the money to make my business grow.
If you end up enjoying this process, then you could be in luck. If you perform well, the lender will offer a renewal to your company. In most cases, this has been a rewarding process for you and your business, so this could be a great opportunity to continue growth.
You do not usually have to wait until you fully pay off your previous balance. Once you repay sixty percent of your old balance, you can reapply for another advance. This makes money available to you faster, so you can do what is necessary to help your business grow.
I highly recommend trying credit card factoring if your business is struggling or you are in need of short term cash. This is a great way to help save your business.
Tags: business credit loans, credit card factoring, merchant advances, small business line of credit