With more and more businesses processing transactions with credit cards, it makes sense to understand the options available to those seeking loans based on credit card processing volume. Traditional business loans require near flawless credit, substantial collateral, and repayment terms that may be difficult for a company to manage. Credit card processing opens doors to opportunities that may not exist for those that are seeking a loan using traditional means. The basic structure of a loan that is funded through credit card processing is as follows:

  • Loans are made based on a company’s credit card sales volume – the more the historic sales volume, the higher the loan amount.
  • When a loan is made in this way, the repayment amount is based on future credit card sales. This keeps the repayment terms in line with the actual sales of the company.
  • Daily “holdback” percentages are taken as payment. For example, if the holdback is 10%, and a company records $500 in daily credit card sales, the lender would receive $50 as payment, and the company keeps $450.
  • Existing credit card processing terminals can frequently be used to integrate with the lender’s system. Occasionally, a new unit needs to be installed to ensure full integration.

What Are The Benefits?

With funding available in a matter of days, and a loan amount determined more by the volume of the business than the applicant’s credit score, a loan secured by credit card processing is a safe alternative to an unsecured loan or traditional business loan. At AllBusinessLoans.com, we specialize in offering loans that meet the needs of businesses nationwide. With our quick application process and flexible repayment terms, AllBusinessLoans.com provides a level of control over your cash flow that isn’t available through traditional channels. Matching payment to revenue means that the peaks and valleys of your business cycle will be complemented by a payment structure that keeps you in business. Apply today and see the difference!