Business Cash Advance

This is similar to factoring, except in this case your credit card receivables are factored rather than the business-to-business invoices.Business cash advance programs have been around for a while but gained the popularity and exposure in the last few years. There are several funding organizations that purchase a predetermined number of Terminal sales receipts and provide business cash advance to the sellers in lieu of those receipts. Global Cash Direct integrates those same cash advance programs along with a variety of additional commercial funding instruments to meet your full financial cash flow needs.

Any fund received through a business cash advance is not a loan, it is a cash advance paid against Terminal sales card merchant account receipts and these amounts are paid back through the merchant account itself.

• The business must accept Visa, MasterCard, Discover, or American Express as a mode of payment
• The business must process payments of $1500 or more in a month
• The business should have been there for at least 2 years
• Credit card statement and bank statements for 3 month for seasonal business and 12 months statement for non-seasonal business should be available.

The biggest advantage that the cash advance business offers to the businessmen is that they are not personally liable to repay a business cash advance. Most retail store fronts and small businesss accept credit cards as a form of payment. Rather than using the personal credit or personal collateral, personal guarantor, etc to get a business cash advance the owner can sell his future credit card receivables at a discounted price to the cash advance business companies.

Cash advance programs get repaid through future Terminal sales. Other payments received through cash, check, or other cards are left with you and only the Visa, MasterCard, Discover, and American Express card payments are used for repayment. There are no fixed payment schedules for business cash advance and they get repaid automatically when the merchant has a Terminal sales.

A cash advance program can be particularly useful to meet working capital financing and can be a good alternative to working capital loans. Unlike venture capital systems, cash advance business would not take equity ownership of the company and the company is free to use the business cash advance for any usage that they see fit.