Credit Card Loans Explained

Many companies already have bank lines, pledged their assets, and even used their owner’s homes as collateral. Now, they can leverage one more asset to increase working capital: future credit card sales. This is a relatively new concept. It was introduced about ten years ago to provide funding for restaurants. Although there have been many success stories, the product has often been viewed unfavorably because of the high cost and short payback period.

Business Cash Advance has taken this concept, leveraging future credit card sales, and applied long standing asset based lending principals. In this way, we are able to provide substantially less expensive loans, to more credit worthy clients.

Companies that Offer Business Advances

– Entrust Business Funders

– CitiWide Business Advance

– CapVance Advance Funding

Is it a loan, or a purchase of assets?

Business Cash Advance lends money; we do not purchase your assets in advance. We can do this because our loan rates do not violate federal banking regulations. We have the lowest rates in the industry, starting at 6%. Loans have significant tax advantages over cash advances. To see how much you are paying on a cash advance, please use the merchant rate analyzer

How Much Can You Get?

All programs are customized to meet individual client needs. We typically lend up to one month of your average credit card sales. This means that if your company has annual sales of $12 million through Visa and MasterCard, Business Cash Advance can advance up to $1 million. Because we are asset based lenders, we can review your other assets and perhaps increase the size of any loan.

How Do You Pay It Back?

We will ACH a small percentage of your credit card sales out of your operating bank account on a daily basis. There is no need to change processors. Alternately, Business Cash Advance can set up a lockbox for your company at a large national bank. The proceeds from the lockbox will go to Credit Cash and then get sent back to your operating account. A portion of each credit card sale will be used to repay the initial advance. You will not have any borrowing base, coupon book, or monthly payment to remember.

How much does it Cost?

We charge as little as 1% a month. Our terms range from 6 months to 24 months. Example: A 6 month loan may cost 6%, a 12 month loan may cost 12 %, an 18 month loan may cost 18%, etc. Most importantly, our rates are competitive with other forms of financing. Because our rates are low, and the payback period extended, we solve your cashflow needs without creating new problems.