Executive Summary: Business Cash Advances and Credit Card Processing

The following key business cash advance issues are discussed in this Executive Summary:

• Five reasons to consider a business cash advance based on credit card processing.
• Ten problems to avoid with business cash advances.
• Six criteria for securing merchant cash advances up to $300,000.

• A business cash advance based on credit card financing is one of the few viable options for reliably obtaining short-term business financing
• There should not be any up-front fees or closing costs
• Funds can be obtained very quickly
• There is no need for collateral
• Credit card factoring is available to virtually any business that accepts credit cards in their business transactions

As noted below, there are a number of problems to be avoided with business cash advance programs.

• Closing costs
• Up-front fees
• 2-3 years or more in business required to qualify
• Maximum business cash advance of $10,000 to $50,000
• 12 to 24 months of $10,000 to $25,000 (or more) in credit card sales required
• Financial Statements required regardless of business cash advance amount (Note: larger merchant cash advances can involve additional information such as financials)
• Fixed payments to pay off the business cash advance
• Fixed term to pay off the commercial financing
• High credit scores (frequently 680 to 700) required to qualify
• Collateral required

• One year operating history as retail or service business
• If leasing: at least one year remaining on lease and in good standing with landlord
• No open tax liens, judgments or bankruptcies
• Acceptable personal and business credit (minimum personal credit scores of 500)
• Business accepts credit cards as a form of payment
• Ability to document credit card sales of $4000 or more per month for the last six months

It is not necessary to accept ANY of the 10 problems listed above in order to obtain a business cash advance based on future credit card sales. AEX Commercial Financing Group has eliminated ALL of these potential problems from the Business Cash Advance Program for their clients. Here is an overview of our working capital program:

• Merchant cash advances from $5000 to $300,000