Credit card processors are often insisting upon cash reserves from small businesses, hurting cash flow management.

by | Invoice Factoring Advice, Midwest invoice factoring and news

How would that affect you?

BusinessWeek is calling this tactic a “brutal cash squeeze,” one that can dramatically harm even well-established companies. The article quotes the CEO of Angie’s List, Bill Oesterle, whose credit card processor wanted a new reserve of a whopping $2.5 million. “In two weeks,” Oesterle said, “we would have been in bankruptcy.”

This bad news hit Angie’s List just as the business was growing by more than 50% a quarter. Fortunately, Oesterle was able to change credit processors and, with the help of his attorney, he got his money refunded in three weeks.

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For more specifics about invoice factoring, visit MP Star Financial online or schedule time to talk with a representative. Don’t wait 30 to 45 days for payment. MP Star can get funds to your account faster. Call MP Star Financial today at (877) 292-1904, extension 150.