Business Cash Advance & Business Financing Alternatives 

Small Businesses Protect Their Credit Card Limits

Small businesses are using company cash advances to keep their credit card limits from being reduced because of late payments. By using a business cash advance, an advance against future Visa and MasterCard sales, businesses are not at the mercy of their customers’ late payments.

Construction companies and handyman companies utilize their company credit card as a line of credit to get the wood, hardware and material for their job sites. Every month the cards get paid off from the customer payments on the jobs. The use of the credit card versus an in-store line of credit gives the businesses perks such as free airline miles and hotel stays.

However, every contractor runs into the situation where “Life happens”, a customer goes into the hospital, leaves on vacation, gets laid off, or something happens that impairs their ability to make an on-time payment. With the reverberations of tight credit and foreclosures rippling back and forth through the banking community, banks and credit card companies are moving sooner than later to reduce credit limits. No longer a three strikes and your out, more of a one to three days late and your credit limit could be reduced by 50 – 90%, severely impinging on your ability to get needed material to the job site.

By accepting credit cards for building and repair jobs, contractors benefit in three ways:

  • their customers can use their credit card companies instead needing the cash to cover the work;
  • the contractor’s credit card does not carry all the upfront job costs; and
  • the contractor can use his average monthly credit card sales amount to qualify for a business cash advance.

By leveraging future sales, contractors can make sure their credit cards are paid on time,safeguard their current credit limits, and keep available a sizable amount of buying power to move quickly to get supplies on to a job site or meet emergency financial situations.

US Business Finance Corp helps owners of small and medium size businesses, such as home builders, law firms, medical practices and retail stores, quickly turn their prospects of future Visa and MasterCard sales into cash – usually receiving the business cash advance into their bank account in less than 10 business days. Faster for repeat customers.

Contact US Business Finance Corp’s small business financing experts today to see how your business can benefit from opening a merchant credit card account and using business cash advances to smooth the ups and downs of your cash flow.

Comments are closed.