United Capital Source Logo

We Specialize in Credit Card Processing Loans & Fast Service

Turn your future credit card transactions into working capital with flexible terms.
Free Consultation – No Obligation

No Cost, No Obligation Quote

    Current monthly sales deposit average to your business bank account?

    How much Working Capital would you like for your business?

    Apply In Minutes

    Use our easy online form to apply & get fast approvals

    Compare Options

    Secured & unsecured options with no personal guarantee


    Pick the terms that work best for your business

    Get Funded

    Funds in a few business days for most programs

    Here’s what business owners like you are saying:

    What our clients are saying:

    Intro To Credit Card Processing Loans

    If you’re a business owner who thinks you’ll have trouble qualifying for and paying back traditional small business loans, Credit Card Processing Loans might be the right product for your needs. Like a traditional loan, you’ll receive a lump sum. The repayment terms, however, are very different. Your ability to repay depends on your debit and credit card sales.

    Does your business alternate between busy and slow periods? This can make it challenging to grow your business with a traditional business loan. Your cash flow might not withstand fixed monthly payments when business slows down. These products also require excellent personal credit, business credit, and consistent cash flow. But as long as you have strong debit and credit card transactions, you shouldn’t have much trouble accessing and paying back short-term business loans on future credit card sales.

    In this guide, we’ll answer the following questions and more:

    Love this place. Matt Wiemann was super helpful and hands on the entire process. Was super easy process and everyone was fast , pleasant, and professional. I would definitely recommend them to anyone. I have had 3 loans and this was the easiest one. If you want honest people who will personally walk you thru the entire process then these are the people you want to help your business grow with the proper financing.
    Robert Inigo

    Free Consultation No Obligation

    What Are Credit Card Processing Loans?

    Loans against credit card processing transactions are sometimes called “Merchant Cash Advances” or “Business Loans Against Credit Card Sales.” It’s one form of a business cash advance. You would receive a lump sum based on the projected debit and credit card payments revenue throughout a given period. Payments would automatically be deducted from debit and credit card sales whenever you batch out your transactions (daily, weekly, etc.).

    $5K – $1M
    Starting at 1-6% p/mo
    3-24 months
    1-2 Business days

    How Do Credit Card Processing Loans Work?

    So, how do you turn your credit card transactions into working capital with flexible terms? Instead of interest rates, credit card processing sales loans have factor rates. This determines your principal or the total you’d owe. You would also be assigned a holdback percentage that determines how much of your daily credit card sales will go toward each payment. This percentage and your factor rate are based on your perceived repayment ability.

    It’s important to note that factor rates differ from interest rates. Factor rates typically range from 1.09 to 1.5. So, if you were advanced $10,000 with a rate of 1.4, you would owe $14,000 in total.

    Since payments are deducted from sales, the size of your payment depends on your sales volume. So, your payment amounts would be smaller if you have a slow month. This would not have to be followed by a more substantial payment the next month, nor would it increase your principal. However, you do have to pay back the total amount within a specific period.

    You also have two options for how payments are deducted. First, payments could be deducted as a fixed percentage of daily sales. Second, you could have the company deduct a fixed percentage of your daily bank account deposits. This method is known as ACH, or Automated Clearing House, payments.

    What Are The Advantages of Credit Card Processing Loans?

    Credit card processing loans are quick and easy to qualify for compared to other capital financing options. You can get approved with less than perfect credit history, less than one year in business, and even rocky cash flow. Thanks to these loose requirements, lenders can approve and distribute the capital to your business bank account in less than 24 hours. Now that’s fast!

    Second, since payments fluctuate with sales volume, you won’t have to make large payments when sales are down. The percentage of sales that gets deducted never changes. For this reason, you’ll only have to pay what you can afford at the time. These repayment terms are particularly appropriate for seasonal businesses or the many small businesses that experience occasional revenue dips.

    Lastly, have you ever approached lenders for business financing only to find that their smallest business loan is way more than you need? With loans against future credit and debit card sales, the minimum borrowing amount is just $7,500. A business owner can borrow the exact amount they’re looking for and skip the lengthy approval process associated with a more significant amount of credit.

    You don’t need collateral since merchant account loans tend to feature lower borrowing amounts. But depending on lenders, you may have to sign a personal guarantee.

    What Are The Disadvantages of Credit Card Processing Loans?

    The quick accessibility of card processing loans comes with a cost. A merchant cash advance carries higher borrowing costs than traditional bank financing options. Why are merchant cash advances so expensive? Well, many business owners have subpar credit, which increases the risk of repayment. Higher costs of capital offset the heightened risk.

    The repayment structure and shorter terms of merchant account loans can also cut into your operating capital. That’s why merchant cash advances are only recommended for small business owners with high debit and credit card transaction volumes.

    Additionally, you won’t save money by paying early since the cost is based on factor rates, not a compounding interest rate.

    Get access to funds fast
    The approval process is easy
    Less than perfect credit accepted
    Use for a variety of business purposes
    Higher costs than with traditional financing
    May have to change merchant account provider
    A shorter repayment term may reduce operating capital

    Credit Card Processing Loans Compared To Other Products

    Merchant Cash Advances$5k – $1mStarting at 1-6% p/mo1-2 business days
    SBA Loan$50k-$5.5mStarting at Prime + 2.75%8-12 weeks
    Business Term Loan$10k to $5mStarting at 1-4% p/mo1-3 business days
    Business Line of Credit$1k to $1mStarting at 1% p/mo1-3 business days
    Receivables/Invoice Financing$10k-$10mStarting at 1% p/mo1-2 weeks
    Equipment FinancingUp to $5m per pieceStarting at 3.5% (SBA)3-10+ business days
    Revenue Based Business Loans$5K – $1mStarting at 1-6% p/mo1-2 business days

    Who Qualifies For Credit Card Processing Loans?

    Approved businesses generally met the following criteria:

    Annual Revenue

    Credit Score

    Time in Business
    4 months+

    How To Apply For Credit Card Processing Loans:

    If you have the required information, their application process takes just a few minutes. Funds can appear in your bank account in under 24 hours. Here’s how to get started:

    Step 1: Consider Your Needs

    Before you begin the application process, take some time to make sure this is the right product for your individual needs. Will you be able to use the funds for your desired purpose? Will you do more good than harm to your cash flow? Do you know exactly how much funding to request? Answering these questions ahead of time will make the rest of this process much smoother.

    Step 2: Gather Your Documents

    To get started, you will need the following documents and information:

    • Driver’s license
    • Voided business check
    • Business Bank statements (3 Months)

    Step 3: Fill Out Application

    You can begin the application process by calling us or filling out our one-page online application. At this stage, you’ll be asked to enter the information from the previous section along with your desired funding amount.

    Step 4: Speak to a Representative

    Once you apply, a representative will contact you for a free one-on-one consultation on the repayment structure and terms of your available options. This will ensure excellent service and that there are no surprises or hidden fees during repayment.

    Step 5: Receive Approval

    If you’ve been approved, you’ll hear back from us within 24 hours. Funds should appear in your bank account in 1-2 business days.

    What If I’m Declined For a Credit Card Processing Loan?

    If you were declined a credit card processing loan, it might be because your cash flow cannot withstand the repayment structure. In this case, we may be able to recommend another product that puts less pressure on your operating capital and is easier to repay.

    We may also be able to recommend a different tool for financing your small business. Possible examples include business credit cards or personal loans. These tools are often easier to access than business funding but can perform similar functions.

    If you were declined for poor credit, consider credit repair services as well. Credit professionals can help you boost your credit score by eliminating the issues keeping your score down.

    Ready to take the next step and apply for Credit Card Processing Loans?

    Free Consultation No Obligation

    Credit Card Processing Loans FAQs

    Is a Merchant Cash Advance a Loan?

    Though you receive a lump sum you must pay back, merchant cash advances are technically not “loans” at all. Instead, they’re categorized as a “cash advance.” You are selling a portion of an asset (revenue from debit and credit card transactions). Hence, a merchant cash advance will not appear as a “debt” or a “liability” on your balance sheet.

    What Happens If You Default On a Merchant Cash Advance?

    If you believe you won’t be able to pay off the total amount by your due date, contact us immediatelyThere are many possible solutions to explore before resorting to extreme measures. Most business financing companies will do everything possible to prevent borrowers from defaulting. We may alter your terms to make it easier for you to pay off your remaining amount.

    What’s the Difference Between a Merchant Cash Advance and a Loan?

    The primary difference between merchant cash advances and traditional small business loans is the repayment structure. Instead of fixed monthly payments, the size of your payments depends on your sales volume. And you can make payments whenever you batch out your transactions (daily, monthly, etc.). With a traditional small business loan, you pay the same monthly amount, regardless of how many sales you make.

    However, a merchant cash advance tends to carry higher borrowing costs than traditional business loans. Thus, you’ll probably pay more in a month for the former than you would for the latter.

    Are Merchant Cash Advances the Same Thing as Invoice Factoring?

    These two terms often get mixed up because yet another name for merchant cash advances is “Credit Card Factoring.” Yes, both options technically involve obtaining financing based on your sales. But with Invoice Factoring, a company purchases your accounts receivables. You don’t owe any money. With merchant account loans, the company buys a portion of your future debit and credit card revenues.

    How Much Do Business Loans on Credit Cards Sales Cost?

    One more main difference between a term loan and a merchant cash advance. While a term loan comes with interest, a business loan on credit card sales comes with a factor rate and a holdback rate. The factor rate works a lot like interest. It’s the percentage you’ll pay your lender on top of your original loan. Your factor rate multiplied by your original loan amount = the ultimate cost of your funding. The holdback rate is the percentage that goes back to your lender until you pay off the entire balance.

    For example, let’s say that you have a $50,000 merchant cash advance.

    If your factor rate is 1.15%, your ultimate cost is $57,500. This is the amount you will pay your lender once you’ve paid off your entire funding amount.

    $50,000 x 1.15 = $57,500.

    Your holdback rate is the percentage of your credit and debit card sales that your lender will receive until you’ve paid off the total amount. For example, let’s say that you make $2,000 in credit card and debit sales on a given day. If your retrieval rate is 10%, then your lender will receive $200 that day.

    $2,000 x 0.10 = $200.

    You can easily calculate your costs once you know your funding amount, factor rate, and retrieval rate.

    Are Credit Card Processing Loans Right For Your Business?

    Like any other business financing product, financing on card processing transactions is designed for specific scenarios and types of small businesses. For instance, merchant cash advances will likely have the least impact on your operating capital if you don’t make high volumes of debit and credit card transactions. Then again, merchant cash advances could also be very advantageous for seasonal small businesses. You could make investments during your slow season to prepare for the busy season. Since payments fluctuate with sales, you wouldn’t have to pay off most of the debt until sales start to pick up.

    One of the most significant advantages of merchant cash advances is accessibility. You don’t need excellent credit or many years in business to get approved. This is why a merchant cash advance carries higher costs and fees than other products. Thus, you may qualify for different products with lower fees and borrowing costs if you have excellent credit and a strong business histor

    Can I Get a Card Processing Loan with Bad Credit?

    Yes, this product is available to borrowers with bad credit. Remember, your borrowing amount is based almost entirely on your monthly card sales. And since the repayment structure of a merchant cash advance is expensive, borrowers of this type of financing are expected to have poor credit. However, your credit score will impact the product’s cost and terms. Thus, to access the lowest possible borrowing costs and fees, consider credit repair services before applying.

    Applying for new business funding felt overwhelming, most of the lenders we considered didn't meet our business model and had rigid lending criteria that was a "one size fits all" concept. Thank goodness for United Capital Source and Danielle Rivelli, who is AMAZING!!!! Within seconds of entering our company details, she gave us a call, answered all of our questions, and we felt in good hands. We got the funding we needed, and it all happened within a matter of a day or two. Highly recommend.
    Jennifer Tirado

    Free Consultation No Obligation

    Why Choose United Capital Source?

    Why businesses choose UCS:

    Quick funding options that won’t affect credit
    Access to 75+ lenders with multiple products to choose from
    Financing up to $5 million in as few as 3 days
    1500+ 5 star reviews from happy clients!

    Ready to grow your business? See how much you qualify for:

      Current monthly sales deposit average to your business bank account?

      How much Working Capital would you like for your business?

      Need Instant Help?
      Call Us Now At:

        Current monthly sales deposit average to your business bank account?

        How much Working Capital would you like for your business?

        At UCS, we understand the value of your time and want to ensure that your application has a great chance of approval. Please take note of the following details before applying:
        • To be eligible, it’s necessary to have a business bank account with a well-established U.S. bank such as Chase, Wells Fargo, Bank of America, Citibank, or other major banks. Unfortunately, online-based bank accounts like PayPal, Chime, CashApp, etc., are not permitted.
        • When describing your current average monthly sales deposits to your business bank account, please provide accurate information. Our approval process is based on your current business performance, and it’s essential to provide accurate details about your current sales in the first question on the application form. We cannot approve applications based on projected revenues after receiving funding.
        We appreciate your understanding and cooperation in ensuring a smooth and successful application process.
        1500+ 5 star reviews
        1500+ 5 star reviews

        Take a minute, Get a FREE Consultation

        Your Connection is
        securely encrypted

        $1.2+ Billion Matched to US Businesses