Short-Term Working Capital Financing Programs
Even thriving businesses frequently need more cash than they can borrow from a bank. In most cases small businesses can obtain short-term working capital using either working capital loans or credit card processing factoring.
SHORT-TERM WORKING CAPITAL LOANS (available to most businesses that have been in existence for at least one year) — Most small businesses have experienced difficulty in recent months when attempting to get short-term business financing. Most banks are no longer a reliable and effective provider for this important commercial finance need. Please contact us for details about whether your business qualifies.
CREDIT CARD FACTORING (available to businesses which accept credit cards as payment from customers) — One of the least-known commercial financing strategies for businesses is potentially the single best strategy for obtaining needed cash for growing their business. This commercial financing strategy uses an under-utilized business asset (credit card receivables) to obtain business cash advances based upon a merchant’s sales volume. The most likely candidates to benefit from this small business loan strategy are restaurants, bars, service businesses and retail stores.
This strategy is also known as "credit card factoring" and "credit card financing". Many small businesses have relied upon a commercial 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 commercial financing. Many other businesses (such as restaurants, bars, service businesses and retail stores 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. Business cash advances from $5,000 to $300,000 can be obtained based on a merchant’s sales volume and future credit card sales.
For more information about options for obtaining either short-term working capital loans or a business cash advance, please contact Stephen Bush at AEX Commercial Financing Group.