Working Capital Advances for Businesses

By: DianaSmith

Working capital is essential for the running of any company. Merchants often require additional working capital in order to meet unplanned needs. One method of attaining this working capital is to approach a company like Business Credit Card Advance to raise the working capital as a loan.

The advantage for companies that seek small working capital loans is that merchant advance cash schemes often do not require any collateral from the borrower. There are no restrictions placed by the lender as to how the money should be utilized within the business. Such companies do not levy hidden fees or up-front costs on such transactions.

Companies seeking working capital loans opt for such funding schemes as they have a number of benefits. Companies that have otherwise been rejected from business loans can apply for a working capital loan on a credit card or debit card account. There are no fixed payments or predetermined time frame for this lending scheme. The entire procedure is automated and hassles free. The loan is granted by the customer selling a dollar amount of future debit or credit card transaction sales at a discount to the loan provider. It is this guarantee that acts as a security and does away with the need for collateral.

There are two main requirements that lending companies impose on businesses applying for loans. The first is that the company should have been in business for a stipulated period. The company will also need to earn a certain percentage of its earnings through credit card based transactions every month to qualify for this scheme.

As each sale is settled, a percentage is automatically deducted and the issuing company is repaid. It is due to this reason that there is no fixed repayment schedule. Repayment is thus directly related to the earnings of the customer.

Business cash advance schemes allow companies to meet sudden demands for their products when working capital or ready materials may be in short supply. Such a loan ensures that the company has enough cash available to be operative and yet competitive at the same time. Business Credit Card Advance provides such working capital advances to companies that have been in business for four months with an average of $5000 in credit card transactions. Approval for loans is done within 24 hours and funding is provided within seven working days.

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