The new wave in small business financing doesn’t only mean more and more opportunities for non-traditional small business lenders. It also brings an upsurge in opportunities for small business owners who would not have thought twice about such methods of financing had bank loans remained as easy to obtain as they have been in the past.
Small business owners have the chance to explore alternate sources of business financing, evaluating their businesses and determining what is best for them individually.
One of these increasingly used and sought-out methods of business financing is the credit card advance. With a credit card advance, lenders can give small business owners a loan, the sum of which is solely determined by the business’s monthly credit card sales. That sum, in turn, is also repaid through the business’s credit card sales. With a credit card advance, it does not matter how quickly or slowly the loan is repaid. There is never a penalty, fine, or interest for slow or fast repayment. In fact, once a certain portion of the advance has been repaid, borrowers become eligible for renewal. This unique feature gives small business owners a sense of security knowing that money is always readily available, should they ever need it.
The fact that the borrower’s credit history is virtually irrelevant during this process is also very appealing to many business owners. Because of this, many people who may feel they could never be eligible for a business loan are actually eligible to receive credit card advances.
What is the Credit Card Advance Process, From Beginning to End?
The first step to receiving your credit card advance is completing an application. This can be done online or on paper. Along with your application, you will be asked to submit your business’s most recent credit card statements. Lenders may ask for anywhere from three month’s to one year’s worth of credit card statements.
Overall, the credit card advance process is very speedy. That said, your application can be reviewed and approved in a matter of days, and your account can be funded in about one week. Immediately following funding, the repayment process begins. As a small percentage of your business’s daily credit card sales goes towards your credit card advance repayment, you continue business as usual, and enjoy your newfound business funds. Of course, this percentage will be explained to you along with all of the other numbers, before you agree to accept your credit card advance.
People say that if you try to solve a problem the same way every time, with no solution, it’s probably time for a change. Embrace the changing times and look into a credit card advance. It could be just what your small business needs.