Business Cash Advances and Credit Card Processing Strategies

We are highlighting ten key difficulties to avoid when seeking business cash advances and working capital using credit card processing. It is especially important for business owners to realize that it is not necessary to accept any of the ten credit card factoring problems.

Credit card processing and small business loan strategies are closely connected in many ways. Business owners should not overlook the substantial working capital benefits which will accrue to their business by effectively coordinating credit card factoring and processing. If the ten most common business cash advance problems can be avoided, the total business benefits will be maximized.

Even thriving small businesses frequently need more working capital than they can borrow from a bank. One of the most important commercial financing needs for any business is ensuring that short-term cash requirements are successfully met. This is frequently a difficult task.

The use of a viable business cash advance strategy has become an increasingly important business finance tool for many businesses faced with a potential short-term cash shortfall. There are a number of common problems (noted below) to anticipate and avoid when businesses use credit card processing to acquire working capital advances.

Most merchants have documented credit card processing activity and sales volume. Since up to $300,000 and more can typically be obtained using a business cash advance based on future sales, documentation of processing activity is a valuable financial asset.

Businesses should realize that there are several recurring problems that should be anticipated prior to using this strategy for working capital business cash advances. Ten common credit card receivables problems that business owners should avoid when employing this strategy are highlighted below.

First, many lenders will attempt to charge closing costs. Business owners should realize that this is an unnecessary transaction cost for business cash advances when dealing with a truly reputable provider of working capital financing based on credit card factoring.

Second, many lenders for these services also charge up-front fees. With the best programs there are not likely to be any up-front fees, and this is a transaction cost that can and should be avoided.

Third, many programs for business cash advances have collateral requirements. For business owners seeking credit card financing, this is an unnecessary requirement and should be avoided.

Fourth, some lenders will require financial statements and tax returns for all business cash advances. Such additional documentation requirements should only be necessary for larger working capital advances.

Fifth, monthly fixed payments to repay merchant cash advances are imposed by some providers. The preferred approach is to avoid such fixed payment requirements.

Sixth, some providers impose a fixed term for repayment. This requirement to pay off the business cash advance over a fixed term should be avoided.

Seventh, many business finance programs require businesses to have at least two years of operating history to qualify for working capital business cash advances. While many business owners can meet such a requirement, a more practical standard for newer businesses is a minimum of one year in business.

Eighth, most providers of business cash advances currently require credit scores of 680 or higher. For many business owners, this can be an insurmountable requirement in the current economic climate. It is feasible to obtain this kind of working capital financing with scores around 500.

Ninth, for merchants needing larger business cash advances, it will be disappointing to learn that many programs are limited to a maximum of $25,000 to $50,000. Providers that are better capitalized for this business finance strategy will be able to accommodate an advance of $300,000 and higher.

Tenth, quite a few programs require up to 24 months of credit card sales of $25,000 or higher. A more practical possibility for business owners will involve a transaction history with six months of $5,000 or more.

It would be unusual for all of the obstacles described above to be relevant for all businesses. Business borrowers are likely to experience several of these problems if they are considering a business cash advance that uses credit card factoring and credit card processing.

Can all ten credit card finance obstacles discussed above be avoided? There are indeed viable credit card receivables programs which avoid all of the problems described. For any business owner considering this approach to working capital financing, it is probably worth repeating that it is not necessary to accept any of these problems in order to obtain business cash advances based on future sales.

Advantage of Online Business Compared to Conversational Brick and Mortar Business

For many centuries, people have been building family businesses such as financial institutions, manufacturing, constructions and etc. These businesses are brick and mortar model where one needs to physically build a business which you could feel and touch physically. But in the past one and half decade, people has been using virtual world via internet to build their business empire. Some examples are Google, Yahoo, Amazon and eBay which have become multi billions dollar companies. Online businesses have its own advantage which one should understand and consider. Advantage of online business could be a big factor which could contribute to the success of your business idea.

Lower Cost To Start Up
One of the biggest issue in starting a traditional business even if it is a small company is the start up capital where you need to employ people, find a office space, fill it up with office furniture and many more expenses. However, in online business you could start an online business with almost no cost. All you need to start a simple online business such as affiliate marketing is knowledge about online business, a laptop and access to internet. As you grow, you could expand your set up, but relatively will be a much simpler process compared to setting up an office.

Take Less Time To Start
Online business could be started within hours if you know what you going to do properly. It takes few hours to the website setting, and you could be doing you business. However, in traditional business, you could not start it in few hours as many other aspects need to be solved first such as office location, the office setting, utilities and etc. which could not be solved in few hours.

Work At Your Own Time
An individual online business allows you to work at your own time and may be from your bedroom. This will give you the ability to work at the most productive individual person’s hours such as at night or evening. It does not require you to work from nine to five.

Business Runs 24 Hours And Worldwide
Online business could run 24 hours a day and depending on you business model, it could harvest the entire world for sale. It does not require constant human intervention and could be 100% autopilot. If the setting is done properly, an owner of online business could just sit around waiting for the money to be transferred into his or her bank account.

Higher Profit Margin
Since online business could eliminate many other costs, the business could give higher profit margin. And since it runs 24 hours and worldwide, it has a better potential to make more sales.

The above are just few of the advantages of online business compared to regular business. This is a time for the twenty first century people to work and live on virtual world.

Getting Started With a Small Business

Having problem starting a small business? Take a look at some tips to help you get started with a small business.

Basically there are two types of business one is Sole Trader or Sole Proprietorship and the other is Partnership.

In Sole Trader, you are the one who has an absolute authority over all business decisions. This is the easiest way of starting your small business You just need to set it up in a certain location and open it for a business It is less likely to spend a small amount of money to register for business name. Also you will not spend a lot of fees for lawyer and accountant because less preparation of document is required.

For Partnership, there’s two or more person who has the authority over the business decision. It is formed through an oral argument between these people and a legal agreement is weigh down by a lawyer is still recommended.

Starting a small business needs patience, motivation and a lot of leg work. It also needs proper planning and research. For a better result and great chance of success, take a lot of time evaluating and explore your personal and business goals. Then use the information you gathered and be able to create a comprehensive and detailed business plan.

Through this business plan you’ll be able to look at some important issue that you haven’t considered yet. It will also provide you the milestones to achieve your success.

Before you decide to start your business site your reasons why you want to go into business Some of the usual reasons are you want to be a boss of your own business and have a financial independence. Also having your own business makes you use your skills and knowledge and be able to utilize it.

Upon developing of your business plan make use of these tips to have a successful business career.

Decide and choose your potential business Is there a marketplace for this business and how much competition is there in marketplace? Also see to it that your business is profitable. You can also consider buying a franchise if you really want to have an instant business but it is more expensive because the franchisor will provide you all the things you need.

Make a careful research on the products or services that want to start. This is important to avoid business owners from wasting big amount of money. Is your product or service a demand of can create a demand to make a profit? Choose the best product or can you provide the best service? And also consider the niche your business would fill.

Once you determine that your business is viable and can make a good profit look for a good looking place where people can find it easily and interesting. Consider also the competitors that are present within the vicinity.

And lastly the most important part of starting a business is your capital. Determine your financial capacity so that you wouldn’t come up in bankruptcy. See to it that you have enough capital that can sustain your business.

At this point you can now decide if you would still continue your business having enough capital. If not, try to revise your business plan so that you can still continue your dream and business goals. Remember that starting a small business need a lot of planning and thorough research to achieve your dream.