SERVICES > ALTERNATIVES > CREDIT CARD RECEIVABLES

CREDIT CARD RECEIVABLES

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Receivable Financing

You accept credit cards for the same reason many businesses decide to factor---to improve cash flow and to increase profits. Your average monthly credit card sales can also serve as the basis for some financing.

Owners frequently use business and personal credit cards to help finance their business. That creates debt and an obligation to make monthly payments, no matter what.

If your business accepts credit cards, you may qualify for another financing alternative. Based on the volume of recent sales that were charged, you may be able to get an advance.

There are no obligatory monthly minimum payments on such an advance. The rate of repayment is a function of future sales.

2 Variations

Please contact us if you have any questions about factoring some of your credit card receivables.

There are two basic ways such an advance can be treated. It could be considered a loan with full recourse, in case your business fails prior to repayment.

We recommend the other variation, where the advance is treated like non-recourse factoring, instead of a loan.

Repaying

With credit card receivable financing, repayment occurs automatically as a fixed percentage of sales. If business picks up, the money gets paid back sooner. If business remains slow, it takes longer.