Credit Card Receivables and Commercial Financing Improvements - By: Allan Michael Taylor

Most businesses which accept credit cards can make use of business cash advance programs by using their future credit card processing activity. However, there are a number of critical commercial financing problems to avoid when using this strategy, and a merchant cash advance is not the only source to consider for additional working capital. The strategy is also called credit card receivables factoring and merchant financing.

One of the most overlooked sources of business working capital is credit card receivables factoring. Businesses should not overlook the substantial working capital business loan benefits which will accrue to their business by effectively coordinating merchant cash advance and credit card processing programs. Improved cash flow and reduced costs are key results of successful coordination of these commercial financing services. One of the most realistic options for obtaining short term small business financing for many retail and service businesses is a business cash advance based on credit card processing volume.

Business cash advance programs can be a source of confusion and problems, and proper anticipation of these potential difficulties is essential for a business owner considering this working capital strategy. Realize that the business cash advance strategy is not readily available until a business has been operational for at least one year. Not all businesses can participate in this financing approach because the business must have been using credit cards as a form of customer payment.

A determination of working capital needs for your business must be made at an early point. The maximum amount for a business cash advance will be based on recent monthly credit card processing volume and will usually vary from $5000 to $250,000 and higher. Review your monthly credit card volume as well as cash receipts from your customers during the past six months. It is not unusual for a business to experience cyclical variations in their monthly receipts, and these fluctuations are generally acceptable in calculating the potential for a business cash advance.

Avoid business finance sites which request that a business owner submit an online application for a business cash advance. Talking to an experienced business cash advance advisor is of critical importance. Representatives using high-pressure techniques should generally be avoided. A realistic expectation is that a merchant cash advance can be finalized in a period of two to four weeks.

Complete an initial business cash advance application once you are satisfied that you have identified a suitable advisor and provider for coordinating the credit card processing and credit card receivables factoring. Recall the suggestion about avoiding online versions of applications for this step. The best way to submit initial documentation is by emailing or faxing the completed application directly to the provider. When obtaining business cash advances, there should never be any closing costs or up-front fees.

About the Author

Stephen Bush and AEX Commercial Financing Group provide business financing help and small business loans for business owners. Steve specializes in SBA loans and merchant cash advances.

Article Directory Source: http://www.articlerich.com/profile/Allan-Michael-Taylor/45501

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