Small business owners are using alternative methods of business financing more frequently. Still for some, these bank loan alternatives, such as the credit card cash advance, remain unfamiliar territory.
Credit card cash advances are in the news, in advertisements and rapidly traveling from mouth to ear amongst small business owners. Nevertheless, I have reason to believe that there remains a large portion of small business owners who have not heard about the credit card cash advance, or have heard misconstrued descriptions, examples and definitions of it. Unfortunately, these uninformed and misled small business owners may be missing out on extra cash to be used on business advancement and development.
I would like to clear up any confusion that there might be about the credit card cash advance. Based on these solid facts, you should be able to determine whether it is the right business financing option for you.
Eligibility
Eligibility requirements for the credit card cash advance are basic. As its name hints, excepting credit cards is one of the most important factors for eligibility and most of the other requirements stem from this crucial requirement. For example, you must own a merchant business (you cannot process credit card sales if you do not sell any products or services). Your business must process at least $5,000 in monthly credit card sales, you cannot be a home-based business and there must be at least one year remaining on the business lease. You also cannot have any unresolved bankruptcies.
Background
Credit card factoring began about a decade ago. Since then, it has taken the difficulty and stress out of business financing for many small business owners. Recently, during the credit crunch, it has been a lifesaver for many small business owners, as the credit crunch has eliminated bank loans as a financing option for lots of small business owners.
Explanation
You get a lump sum of cash in exchange for a small percentage of your business’s future credit card sales. That means you can get cash now and pay later. Once you receive your funds, the payback begins. When a customer uses his/her credit card to make a purchase a small percentage of the sale goes toward repaying the credit card advance and the rest of the sale goes to you. This "split" continues to take place until the entire advance has been repaid.
Benefits
The credit card cash advance allows small business owners to get funds much more quickly than other methods of business financing allow (in as little as 10 business days). The requirements are also much looser, allowing for a larger portion of small business owners to be eligible to receive these funds. There is no collateral required and borrowers do not need to have excellent credit scores.
Setbacks
The credit card cash advance is limited to merchants, those that operate retail and service-oriented businesses. This of course is due to the method in which the advance is repaid.
This type of business financing is also more expensive than the bank loan and meant to make a way for those who are ineligible for bank loans for one reason or another.
Watch the video related to credit card services
www.Hawaii-Prepaid-Legal-Services.com 1. Do not carry your social security card in your wallet. 2. Draw a line through blank spaces on debit or charge slips above the total so the amount can’t be changed. 3. Tear up carbon slip and save all receipts so you can check against your monthly statements. 4. Report all discrepancies as soon as possible. Under the Fair Credit Reporting Act (FCRA) the card issuer must investigate any errors reported to them within 60 days from the date of your last statement. 5. Keep a records of all of your credit card accounts, telephone numbers of the creditors, expiration dates so you can quickly report a loss. 6. Carry only a few credit cards at a time. 7. Check with your homeowners insurance policy to see if they carry identity theft insurance.
Help answer the question about credit card services
Providian Credit card to Washington Mutual Card Services!?Has anyone got a Providian Credit Card only to find that when Washinton Mutual Card Services took over the APR has jumped significantly? I am now paying almost 10 percent more APR. I have had my card for over 5 years now and never had a problem. I was told that all the APR's went up and everyone is paying more. There's nothing they can do to change it.
I have filed a complaint with the General Attorney's Office today and if this has happened to you. Please send in a complaint and stop these companies from absusing the consumers. I plan to pay off this card ASAP and never have anything to do with this company ever again!
I would rather write a check. This way, I will have a good prove backed by the bank that I did make a payment for the services.
I would find it highly suspicious if a payment needs to be made in cash. Usually, contractors who cheat on the income taxes do that. I would rather not give my credit card number. The reason for that, I am not sure at all how privately the contractor will store this information, and if it will be easily accessible by others.
Personal check would be the best way for me to pay.
I worked there for about 3 months in 1999. Like the other person said the pay is decent, but I left because I wanted better hours and not have to work every other weekend. If you don't mind people calling to yell and cuss you out about their bill statement, then you will do just fine!
check out propay.com I use them faithfully and have never had a problem with there service or the fees. The annual membership amount depends upon the amount of processing you think you are going to do. You also have the choice of transferring your money to your checking account or a debit card.
Yes, anywhere Visa is accepted.
It depends whether your bank has closed shop completely, or they closed shop and sold your account to another bank.
If they closed shop, then they might be declaring bankruptcy. I don't think you'd be impacted.
If they sold your account, then the other bank has the right to collect on the money that you owe.
Either way, it's simply like this: as long as you have a balance on your [credit card] account, you WILL be charged interest.
No.
just use it say once a month n pay off in full each month, it will look good on ur credit file
find and contact a korean business group and ask them
Hi. I had the same decision to make when I was starting my online business so I know what problems you are facing.
At first I used paypal, but then my sales were increasing very quickly and I knew I needed to switch to a merchant account/payment gateway setup to handle the larger volume.
I came across this website, http://www.electronictransferservice.com and they really helped me learn a lot. There's plenty of information on their pages and I discovered so much about how all this works with processing credit cards. Their FAQ section is definitely worth a look.
I'm not recommending you sign up with them in anyway, but I did contact them and was able to get all my questions about merchant credit card processing answered from a real live person. That was pretty cool.
I eventually went with a different company, but at least I was armed with much more knowledge than when I first started.
I'm thankful to say that my business and sales have been doing well and making the switch was, to me, a good choice. You'll have to determine for yourself if and when you will make the switch.
One thing though, if your volume of sales is not enough to cover the costs of processing fees, then I would go with paypal and just wait till it does.
Hope that helps and good luck!