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January 22nd, 2013:

Part 11: Merchant Services Advances & Lines of Credit

Welcome to part 11 of our 12 part series – “Tell Me the Best Merchant Solution for My Business.”   In this chapter of our series we will discuss the following questions: “Can I take a line of credit out on my merchant payments?    What does it cost? What does the approval process look like?”

Can I take a line of credit out on my merchant payments? What does it cost?

Yes. Sort of.  Merchant Services advances like Choice Merchant Services Capital for Merchants Program, is not a line of credit yet it operates like one.  Here is how it works:

1. You essentially can received an advances of 1 month of merchant services processing volume.

2. The payback period is typically 4 to 8 months.

3. Most merchants pay back about $1.35 on the dollar over a 6 month period.

What does the approval process look like?

If your business has been in business at least 1 year and has 6 months of processing history you can be fully funded within 3 days of starting to process through Choice Merchant Services partner North American Bancard.  In other words, you get approved and funded within 3 days!  Compare the fast turn around here to a bank when it takes 60 to 90 days to qualify for a line of credit.  The Capital for Merchants program can come in very handy when trying to make payroll, order inventory, buy a business, purchase a property, etc.
 
Keep on reading.  Our next chapter of this 12 part merchant service series will be part 12, “Keep on reading.  Our next chapter of this 12 part merchant service series will be part 11, “Can I accept electronic gift cards?  If so, why should I?  What do I have to gain and lose by doing so?”