Credit Card Processing - Business Finance and Business Loan Help

Business loan strategic solutions and credit card processing are more connected than most business owners realize, and changes to either are likely to have measurable impacts on business profitability. Merchants should take advantage of profitable business finance benefits by successfully coordinating credit card processing and business cash advance strategies. The business financing benefits will be especially noticeable if several typical credit card processing and working capital difficulties can be precluded.

Even thriving merchants periodically need more working capital than they can obtain from a bank business loan. One of the most critical business financing tasks for any business is to make sure that short-term cash needs are fulfilled. This is frequently difficult and sometimes impossible for the average business.

Effective and timely use of a prudent working capital business loan is an increasingly critical business finance 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.

IMPROVE BUSINESS FINANCE WITH CREDIT CARD RECEIVABLES AND CREDIT CARD PROCESSING

Most businesses have a documented sales volume and documented credit card processing activity. It is this documented level of sales volume and credit card processing activity that becomes a financial asset to the business finance situation. Business cash advances up to $300,000 can be obtained based on a merchant's sales volume and future credit card sales.

RECOMMENDED BUSINESS FINANCE SOLUTIONS - TEN BUSINESS CASH ADVANCE PROBLEMS

There are a number of critical business finance problems that business owners should be aware of before a business cash advance is obtained. The most serious problems associated with credit card processing and business cash advances are listed below so that they can be easily avoided by businesses. Recommended and Preferred merchant cash advance and credit card processing requirements are shown after each potential credit card factoring problem.

(1) Credit Card Factoring and Credit Card Processing Difficulty: Closing costs charged. Suggested merchant cash advance and credit card receivables requirement: Closing costs not required.

(2) Business Cash Advance and Business Finance Problem to Avoid: Up-front fees. Preferred business cash advance requirement: No up-front fees.

(3) Credit Card Processing and Credit Card Financing Obstacle to Avoid: Collateral required. Recommended credit card factoring requirement: No collateral required.

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

(5) Business Finance and Business Cash Advance Problem to Avoid: Fixed payments to pay off the business cash advance. Preferred business cash advance requirement: No fixed payments.

(6) Business Finance and Credit Card Processing Difficulty: Pay off the business cash advance over a fixed term. Suggested merchant cash advance and credit card receivables requirement: No fixed term for repayment required.

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

(8) Business Cash Advance and Credit Card Processing Problem to Avoid: high credit scores (680 to 700 or higher) required to qualify. Preferred business cash advance requirement: Credit scores of 500 or better.

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

(10) Credit Card Processing and Business Finance Obstacle to Avoid: Up to 24 months of credit card sales required. Preferred credit card factoring requirement: six most recent months with sales of at least $5,000.

CAN THE TEN BUSINESS FINANCE PROBLEMS DESCRIBED 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.

It would be a rare situation for all of these potential problems to be of primary importance to a business owner. Most commercial borrowers will encounter several of these problems if they are evaluating business cash advance programs that use credit card processing and credit card financing.

Author's Note: Steve Bush is the CEO of AEX Credit Card Processing - Business Finance Solutions. AEX Commercial Financing Group [ http://aexcommercialfinancing.com ] and Steve Bush provide commercial mortgage and business loan assistance throughout the United States.
Copyright 1995-2007 AEX Commercial Financing Group and Stephen Bush.

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