NFIB

Turn Credit Card Receipts into Working Capital
08/ 05/ 2003

by Jeffrey Moses

Your sales are growing slowly but steadily, but your cash flow isn't enough to do some of the things you know would accelerate your overall growth. You have tangible plans for marketing, new product development and new sales staff. If this sounds like your company, it's time to consider taking a loan - but not just any loan. Rather than turning to a bank or applying for a line of credit when your company needs a cash infusion, consider contacting a credit firm that provides cash advances based on anticipated future credit card receipts.

Based on your recent monthly sales totals, you can qualify for $50,000 to $75,000 in cash advances, which you can use for working capital, business expansion and payment of debts. This amount will be paid back through an ongoing small percentage deduction on your future credit card receipts. There are no advance costs, no required minimum payments and no time frame in which payments must be completed.

To qualify, you must be processing a certain amount of credit sales monthly, usually at least $5,000 to $6,500. Some plans require you to have been in business for at least a year, but others have no time-in-business requirements. In most plans, poor personal or business credit will not disqualify you.

Funding is usually quick, often in several weeks or less - and the percentage-based payment schedule gives great flexibility to small businesses that often experience seasonal ups and downs, unexpected slow periods and sudden business drop offs.

Before you commit, shop around and compare rates to find the advance cash lender that is right for your small business needs. Also, be careful not to get in over your head. The advances must be paid back, with interest, at some point. Consult your financial advisor before taking major steps.

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