Business Cash

5 Best Reasons to use Credit Card Factoring

Credit Card Factoring gives retail and service business owners with significant credit card sales, quick and easy access to working capital financing. It is a relatively new business financing technique. Many know this by several other names, such as business cash advance, merchant funding, merchant account cash advance, or merchant cash advance.

A Merchant Cash Advance or Credit Card Factoring is a type of funding which isn’t a loan. MCA refers to the lump-sum payment received by a business in exchange for future credit/debit card sales receivables. It is one of the most popular methods small business owners use. Especially those who deal with credit cards (restaurants and other retail merchants). Cash advance providers supply funds based upon a business’ monthly volume of credit/debit card transactions.

When compared to the interest rate on a bank loan or business line of credit, Credit Card Factoring is quite expensive. However, Merchant Cash Advance (MCA) or Credit Card Factoring is becoming more and more popular over the years.

This can be accounted for the following reasons:

We at offer a low rate Business Cash Advance program. This business funding solution is ideal for those who can’t get approval for a traditional loan at the bank. It’s a great alternative when credit and collateral aren’t healthy, and when there is a limit in the business history. It is apt for you if a large part of your revenue comes from credit card payments. Credit card factoring offers a flexible way to manage cash flow, build business credit, and grow your company – all the while opening the doors to traditional business financing. So consider Credit Card Factoring as a short-term finance option. You can use this to improve your credit score and then opt for traditional bank loans.

Have questions regarding Credit Card Factoring? Call 866-598-4295 or use the fast, safe & secure online funding application.

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