Advance Pay Programs: How to Get a Small Business Loan with Credit Card Sales

Every small business owner with credit card sales needs to know how to get a small business loan up front before the sales have occurred. Although this program can have a high price tag attached, it is one way to get cash for your small business very quickly. It is one way of boosting a weak cash flow when you, as a small business owner know that you will have strong credit card sales in the near future.

This is how to get a small business loan using your future credit card sales. The lender purchases a fixed dollar amount of your future credit card receivables at a discount. The lender gives you a lump sum of money immediately at the discounted amount. When one of your customers pays with a credit card, the lender collects the money from the transaction, and continues to do this until the full fixed amount of the small business loan has been balanced. This is not considered a “collateral” loan, but nevertheless, lenders for this type of financing have stringent requirements. Using an advance pay program to obtain a form of small business loan is a strategy for having access to operating capital for your small business. Please contact us for more information for getting a small business loan with credit card sales.