As a small business owner, I can be successful if I know of all the various types of funding. By knowing these different types of funding, I can prepare myself for future loans or borrowing. Because of the struggling economy, I recently found myself desperately in need of funds.

I needed to pay my suppliers and I had nothing available to make the payments. I had tried to apply for sba business loans, but due to new ownership, lending practices had become stricter.

My next step was to find a lender willing to do credit card factoring. Credit card factoring, also referred to as a merchant advance, would be the best solution to my problem.

As a merchant, I receive thousands of dollars a month in credit card sales. Because of my high credit card sales, I was in great shape to receive funding from a lender willing to do a merchant advance.

I knew that many lenders required that I have at least five to ten thousand dollars in credit card sales a month. I was also required to have a lease on my current location for at least a month. These were all prerequisites that I met, so I applied for an advance.

I heard back from the lender within the same day I applied. Based off of my credit card transaction history, I was approved for a merchant advance.

The advance would easily cover my bills and I could use the funds to make other payments that needed to be made. This almost seemed too good to be true, but I was going to get my funding.

The best part about this situation was my payments would be made automatically. I would not be required to make any monthly payments per se. My payments would be made daily, through my credit card transactions. During each transaction, a small percentage is withdrawn for the lender.

When I close my batch each day, the lender will receive their portion from my credit card vendor. I would not be tied to any long term repayment plan or penalized for late payments.

This was easily the best financing option I could have found. I was able to pay all of my bills and have left over fund that I was able to use directly on the business.

I have recommended many of my friends to use credit card factoring with their businesses if they are in need of short term funds.

Tags: business credit loans, credit card factoring, sba business loans, small business line of credit

This entry was posted on Sunday, December 20th, 2009 at 12:57 pm and is filed under credit card factoring. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.