Business owners should constantly assess the measurable working capital management improvements which will accrue to their business by successfully coordinating credit card processing and credit card receivables because credit card processing and business loan strategies are closely connected in many ways that directly impact the bottom line of a business. These benefits should be further enhanced if a number of common credit card processing and business cash advance obstacles can be eliminated.

Even the most successful businesses regularly need more financial resources than they can get via a working capital business loan. Perhaps the single most important commercial loan goal for any business is to successfully meet day-to-day cash requirements. This can be an impossible task if working capital is not properly managed.

Effective and timely use of a prudent working capital business loan is an increasingly critical business financing tool when a business is faced with a short-term cash shortfall. Business owners should be forewarned that there can be a substantial number of potential difficulties in coordinating credit card processing and credit card factoring.

Credit Card Processing and Credit Card Financing

Most merchants have documented credit card processing activity and sales volume. This documentation of credit card processing activity and sales volume is a financial asset, since up to $300,000 can typically be obtained via a business cash advance based on future credit card sales and sales volume.

Business Loan Recommendations for Credit Card Processing and Business Cash Advances

Merchants should be aware that there are at least ten serious difficulties that they need to be prepared for before obtaining a business cash advance. These problems are described below to help businesses avoid these common merchant cash advance and credit card processing obstacles. After each potential problem is described, a suggested credit card processing and credit card receivable factoring solution is provided.

(1) Business Cash Advance and Credit Card Processing Problem to Avoid: Closing costs. Preferred and highly recommended business cash advance requirement: No closing costs.

(2) Business Cash Advance and Credit Card Processing Problem to Avoid: Up-front fees. Preferred and highly recommended business cash advance requirement: No up-front fees.

(3) Business Cash Advance and Credit Card Processing Problem to Avoid: Collateral required. Preferred and highly recommended business cash advance requirement: Collateral not required.

(4) Business Cash Advance and Credit Card Processing Problem to Avoid: Financial statements required. Preferred and highly recommended business cash advance requirement: Financial statements required only when a large business cash advance is desired.

(5) Credit Card Factoring and Credit Card Processing Difficulty: Pay off the business cash advance with required fixed payments. Suggested merchant cash advance and credit card receivables requirement: No fixed payment requirement.

(6) Credit Card Processing and Credit Card Financing Obstacle to Anticipate and Eliminate: Required to pay off the business cash advance over a fixed term. Recommended and preferred credit card factoring requirement: Fixed term for repayment not required.

(7) Credit Card Processing and Credit Card Financing Obstacle to Anticipate and Eliminate: Several years in business required to qualify. Recommended and preferred credit card factoring requirement: one year in business.

(8) Credit Card Factoring and Credit Card Processing Difficulty: Credit scores of at least 680 required. Suggested merchant cash advance and credit card receivables requirement: Acceptable credit scores of 500 and higher.

(9) Credit Card Processing and Credit Card Financing Obstacle to Anticipate and Eliminate: $50,000 maximum business cash advance. Recommended and preferred credit card factoring requirement: $300,000 maximum cash advance.

(10) Business Cash Advance and Credit Card Processing Problem to Avoid: 12 to 24 months of documented credit card sales of $12,000 to $25,000 or more required. Preferred and highly recommended business cash advance requirement: 6 months of $5,000 or more.

Can the Business Cash Advance Problems Listed Above Really Be Avoided?

Absolutely. There are credit card financing programs which preclude all of the difficulties listed above. It is not prudent to accept any of these ten obstacles to receive a merchant cash advance based on credit card sales and credit card processing activity.

Of course, not all of these potential problems will be relevant to each commercial borrower. Most commercial borrowers will encounter at least 2-3 of these problems if they are reviewing business cash advance programs that use credit card receivables and credit card processing as the basis for obtaining short term business loans.

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