Securing a Business Loan with Credit Card Receipts

If you are looking for a business loan but cannot secure one due to bad credit issues, an alternative finance option would be using credit card receipts as evidence of income. Although it is an unconventional method, this form of funding is frequently used to help many businesses.

How to Secure a Business Loan with Credit Card Receipts

There are a few requirements in order to secure a business loan using the business credit card receipts. First of all, the business must process at least $2,500 dollars a month in credit card sales. If your business doesn't accept credit cards, you will not be able to take advantage of this form of financing. It works by “purchasing” your future credit card sales and giving you a lump sum payment up to $100,000 as a cash advance. The amount of the loan will vary depending on who secures the advance.

How to Repay a Credit Card Receipt Loan

Perhaps one of the best things about a business loan that uses the credit card receipts is the fact that there are no set repayment terms. Repayment occurs as the company takes a portion of each credit card sale until the advance is paid in full.

Benefits of a Credit Card Receipt Business Loan

There are many benefits to a cash advance using credit card receipts. It is not a loan, so you're not borrowing anything. You are allowing another company to buy the rights to your future credit card receipts. Because it's not a loan, credit history doesn't matter. As long as the business has at least 60 days worth of credit card sales, this is a viable option.

For new businesses, this is the best way to get funding, because a lack of a credit history is just as detrimental as a bad credit history. As long as your business is processing a certain amount of credit card sales each month, the business has all the collateral it needs, meaning this type of financing requires less security than others. There is less risk for you, because you don't have to worry about any unforeseen circumstances hindering your ability to repay and negatively impacting your credit rating.

Any business that does not want, or cannot use a traditional business loan for the funding they need, should consider using credit card receipts funding options. This option makes credit card sales a useful choice for businesses, and a great option for customers.