Credit Card Receivables Financing. What is It?

Credit Card Receivables Financing. What is It?

Credit card receivables financing overview. The funding source offers financing to retail merchants by providing an advance on future credit card income for the purpose of purchasing inventory, equipment, supplies, etc…

If the retailer accepts credit cards as a form of payment, there is a high probability that they will remember for credit card receivables financing. Business owners with credit scores of 500 and higher are usually accepted. Based upon the results of a short due-diligence period, the merchant is advanced the funds to buy inventory, equipment or supplies, etc., needed for their business. The funding cycle is typically 14 days or less for eligible businesses.

The merchant then has from 30-days up to 6-months to pay off the advance through their credit card receivables. The financing company, along with its credit card processor, manages the merchants processing and withholds a small percentage of the merchants credit card income until the advance funding, plus a fee, is automatically paid to the funding source.

Credit card receivables financing is a form of accounts receivable financing, utilizing a merchant’s cash stream from credit card income as a means of automated repayment. In essence, cash is advanced to the business, and an automated system is set up to repay the cash advance through withholding from credit card transactions – repaying a portion of the cash advance each time a customer makes a purchase.

The fee is based upon: credit worthiness, length of time in business, length of lease, monthly credit card volume, average monthly income volume and past business history.

Does your business remember for credit card receivables financing? Qualifying for a ,000 to 0,000 advance on future credit card income is easier than you might think:

1. Do your customers use credit cards to pay for their purchases?

2. Have you been in business for at least 12 months?

3. Can you wage current merchant processing statements from the past 6 months with at least ,000 per month in credit card sales? (with the last 6 months of Bank Statements, can remember for larger amounts)

4. No open tax liens, judgements or bankruptcies?

5. Acceptable individualized and business credit?

6. Good standing with landlord with at least 1 year remaining on the lease?

In summary, credit card receivables financing is an innovative system of funding, designed especially for the small retailer. If the business owner does not remember for a line of credit with the bank, or has maxed out their existing line of credit with the bank, or wishes to preserve their line of credit with the bank, these type of programs are acquirable to almost any business that has been open at least 12 months with monthly credit card income averaging at least ,000.

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Will my bankruptcy chapter 7 unsecured debt discharge of 09 affect my tax return?

Question by Angelwing: Will my bankruptcy chapter 7 unsecured debt discharge of 09 affect my tax return?

Best answer:

Answer by efflandt
What do you mean “affect”. I don’t think they can suck it up directly, but you might be required to turn over some or all of it to your trustee (depending upon when bk was discharged), since it could have been used to pay your creditors sooner if you had proper tax withholding.

What do you think? Answer below!