Credit Card Factoring: Quick and Simple Merchant Capital

(prHWY.com) May 24, 2012 - Florida, FL -- Florida, May 21, 2012 - Many times the hardest part of running your own business is getting cash to maintain and sustain gradual growth. This is even true when you are in the market for small business loans. There is a mistaken belief that restaurants are more likely to fail than any other niche; a ten percent success rate is often noted.
The actuality is that at the 5-year mark many new restaurants have a 40% success rate, nearly matching to most other forms of businesses. However, it can be hard to get funds, especially from mainstream sources such as the local bank lender.
Small business loan alternatives can also be obtained from merchant account providers as a factoring contract. These providers have credit card factoring options that range from a few 1,000 dollars all the way to 250,000 dollars if necessary. The entrepreneur is effectively selling their future Visa/MasterCard receivables at a discount in order to get the money that are necessary right now.
The merchant cash advance is repaid by way of a credit card receivables derived contract. A percentage of credit card receivables are paid back based on a "Daily Capture Rate" that is worked out prior to acquiring the capital which means that on a bad business stretch of time the merchant advance can still be paid without having to face delinquency fees.
When you operate your own establishment it can be difficult to predict when you will need to have additional cash on hand. Start up capital can be larger than expected, and the first major problem can be a "make or break" event. Even if the business owner has impeccable credit, it can take weeks for a bank loan to be approved; in the time being, business continues to hurt.
Small business loans provided through credit card factoring supply a much needed, fast, solution for businesses in need of working capital. Neither collateral nor years of financial statement are needed to be considered for small business loans when you work with a reliable financing company. There are many firms to choose from so you may want to make positive that you look around. Your business may be approved for a more advantageous deal than initially offered and searching around with the different companies and programs they provide will ensure that you get the most beneficial deal for which you can qualify. I would also recommend doing your due diligence prior to needing the cash. That way once the time comes along you will know precisely how to proceed.

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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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