For some business owners, the traditional bank loan just won’t work. If you work in hospitality, retail, or a similar business, then you understand. These businesses go through cycles. They have slow periods followed by bursts of activity. You may have mastered the art of planning for these periods, but the bank doesn’t care. If you take out a small business loan, you’ll have to make your fixed, regular payments no matter how business is going. The entire point of a loan is to help your business grow. Your business loan shouldn’t make your life more stressful. However, you do know that you need some kind of loan, so what do you do?
If any of this sounds familiar, then a credit card factoring may be perfect for you. Just like a term business loan, a credit card factoring loan gives you a lump sum of money that you can use however you’d like to use it. However, instead of making fixed monthly payments, you pay back your loan by using a portion of your credit and debit card sales.
Compared to other loan types
|Loan types||Max Amounts||Rates||Speed|
|Merchant Cash Advance||$7.5k – $1m||Starting at 1.09||1-2 business days|
|SBA Loan||$50k-$10m||Starting at 5%||3-5 weeks|
|Business Term Loan||$10k to $5m||Starting at 5%||1-3 business days|
|Business Line of Credit||$10k to $250k||Starting at 8%||1-3 business days|
|Receivables/Invoice Factoring||$50k-$10m||Starting at 5.8%||1-2 weeks|
|Equipment Financing||Up to $5m per piece||Starting at 5%||3-10 business days|
|Revenue Based Business Loans||$10K – $5m||Starting at 9%||1-3 business days|
United Capital Source
Ready to start a partnership? Then talk to us about factoring your credit cards sales today. You can call us for your free consultation, or you can go ahead and start your application online now.