Crown Financial Services

Credit Card Factoring strategies for short-term working capital management is often overlooked because of an apparent preference for long-term business financing. Although long-term business loan options are frequently appropriate, there are several short-term working capital management possibilities that will be much more effective for business owners in achieving successful business financing results. One of the most overlooked short-term working capital financing strategies is Credit Card Factoring programs.

Credit Card Factoring - SHORT TERM WORKING CAPITAL MANAGEMENT

For any business that accepts credit cards as a method of payment, a Credit Card Factoring advance is a critical business financing tool that is often overlooked. Even thriving businesses frequently need more working capital than they can borrow from a bank. One of the least-known merchant financing strategies for successful businesses is potentially the single best working capital management strategy for obtaining needed cash for growing their business: the use of a Credit Card Factoring program.

The most likely candidates to benefit from this working capital loan strategy are retail stores, service businesses, restaurants and bars. The highly-recommended and highly-effective working capital financing strategy uses an under-utilized business asset (credit card receivables) to obtain Credit Card Factoring advances based upon a merchant’s sales volume.This working capital management strategy is also known as “credit card receivables funding”. Many businesses have relied upon a working capital financing strategy called “receivables factoring” or “receivables financing” which allows them to sell their future receivables at a discount.

Most small businesses cannot adequately document their receivables in order to qualify for this kind of business financing. Many other small businesses (such as restaurants, bars, retail stores and service businesses noted above) simply do not have such receivables to rely upon as a commercial financing tool.

What these businesses do have in many cases is documented sales volume and documented credit card sales activity. It is this documented level of sales volume and credit card sales activity that becomes a financial asset to the business and its business financing strategies. Credit Card Factoring advances from $5,000 to $1,000,000 can usually be obtained based on a merchant’s sales volume and future credit card sales.  

The business financing time period covered by a Credit Card Factoring advance is typically 12 months or less. For businesses that desire to continue the Credit Card Factoring advance program beyond this period, it is usually an easy matter to get an additional business cash advance once the initial one has been completed. Typically in 48 hours.

Dan Ollman is the CEO and President of Crown Financial Services, Inc.Crown Financial Services, Inc. is based in

 Call now for a free no cost no obligation consultation, (702) 367-3281.Or visit us at (www.crownfinancialservices.net) and download a free booklet, “Ten ways to get working capital for your business”. 

This entry was posted on Tuesday, September 18th, 2007 at 3:14 pm and is filed under Merchant Account Advances. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.