Small Business Loan against Future Credit Card Receipts

Published: 28th July 2011
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When credit cards were invented did anyone ever imagine that it would become a source of alternative funding or small business loans? The answer is no because it was used as a medium of payment; an electronic payment which gave customers the ultimate freedom to make cash-free transactions. But now, credit and debit cards have assumed a new role; the dimension has changed and these electronic cards have become a potential finance instrument in your hand.

It’s amazing to think how a thin, light, plastic card with a magnetic strip can be processed to yield company revenue. This future revenue prospect of the company becomes the base for merchant cash advance from merchant funding providers in America; Rapid Capital Funding happens to be a major player among loan alternative resources.

Get business loan- Borrow against your credit cards futures sales

Yes, you can get an unsecured small business loan on the sales you are likely to make through electronic payment receipts- to be more specific credit and debit cards. You can also call this as credit card cash advance or credit card cash loan. The amount you can expect from Rapid Capital Funding is as high as $250,000. For this merchant advance you have to satisfy the financial company with certain eligibility norms. What makes you eligible for business cash advance are:

• A business operating within the territorial jurisdiction of America

• A credit card and debit card mode of payment

• An average monthly credit card sales volume- minimum $5000

The process of revenue generation trough electronic payment receipts is called credit card factoring.

What is credit card factoring?

To begin with, it must be stated that when Rapid Capital Funding gives you business advance it buys a certain percentage of your future sales on credit as well as debit cards. The percentage purchased is not at all high; hence when it’s time to repay, you do not get the pinch of money getting cleared out of your bank account.

The electronic receipts are processed or the invoices are factored to generate monthly sales of the company. The lending company takes out their quota of money in three different ways, namely:

Split Withholding - Seamless split of funds between the merchants and merchant funding companies.

Lock Box or Trust Bank Account - Quota of revenue money will be advanced directly into checking account of the bank of the financial provider via the medium of ACH, EFT or wire.

ACH Withholding - The cash lending company can only avail information about credit card processing; their share of money gets deducted from company account via ACH

The USP’s of small business loan

The easy application process clubbed with the following benefits make merchant cash advance a top choice among other alternative finance avenues:

• No formal credit check and review- without any hassle of good credit score.

• Not need to place property and other valuables as security collateral

• No elaborate, time-consuming paperwork

• No wastage of time in loan approval and fund transfer

• Repayment process is easy and flexible

Get fastest business financing with Rapid Capital Funding.

Credit card transactions are significant aspect of any small business nowadays. On the basis of credit card factoring many small business owners can apply for merchant cash advance from Rapid Capital Funding.

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