Credit Card Processing for Your Business

Credit card factoring is a little known financial practice that provides needed cash to merchants through their credit card processor.

Florida, FL (prHWY.com) May 24, 2012 - Florida, May 22, 2012 - Credit card factoring is a little known financial practice that provides needed cash to merchants through their credit card processor. Few business owners realize that they have this option and head straight to family or a bank when they need money to pay for expansions, repairs or upgrades of their stock and equipment. If you are a business in need or cash quickly, you should look into factoring as well.
The concept behind factoring is something like selling futures. You, as the business owner, agree to sell future profits at a discount to the factoring company. The cash is provided now in exchange for anticipated receipts in the next several months or years. These arrangements are for the short term, rarely more than 5 years, and are a viable way for a company with a proven credit card sales history to obtain needed money.
Credit card factoring - Unlike a bank loan, where the repayment schedule is fixed for the life of the loan, a factoring agreement takes into account the fact that in every business there are busy months and slow ones. Your payment is directly tied to your credit card sales, as a percentage, not a set fee. If you have agreed to pay 10% per month and you take in $8,000 one month, your payment that month is $800. In another month you may take in $10,000 and pay $1,000. This flexibility is a wonderful asset for a growing company.
Another benefit of credit card factoring is the speed in which the money turns up in your hand. While a bank may take several weeks of deliberation and dictate how you use the money when and if they give it to you, with a factoring agreement, you will have the money in about a week, and you can apply it to whatever you deem fit.

About the Author:

Credit Card Factoring - At Merchant Cash Finder we know that comparing different quotes is the best way to shop for a Merchant Cash Advance. We take pride in helping business owners get the funds they need while making sure they receive the best deal!

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Tag Words: business advance, restaurant loans, merchant account loans, restaurant loan, easy small business loans, credit card factoring, merchant account loan

Categories: Business

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Merchant Cash Finder
Florida, USA
Phone: 888-970-1119
E-mail: info@merchantcashfinder.com

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