Credit Card Factoring

Credit Card Factoring: A New Option for Cash Flow Management

Growing businesses are constantly seeking new options for funding expansion plans, staying current with expenses — and just plain cash flow management.

But during times of tight, unpredictable business credit, it can be hard to figure out your options.

Bank loans and lines of credit are expensive and often difficult to obtain.

You could probably sell part of the company, but that’s the last thing most entrepreneurs want to do.

Alternative financing options like invoice factoring are more popular than ever, but are not always helpful to companies that collect payment at the time of purchase (retail stores, restaurants, personal service firms, etc.) and don’t have many receivables to factor. In this kind of situation, credit card factoring – also known as merchant funding – is the perfect solution for many companies.

If your company has at least $3,000 in credit card sales each month, and has been in business for at least two years, MP Star can show you how to access your working capital almost immediately.

How Credit Card/Merchant Funding Works

In a nutshell, in this type of arrangement, MP Star will provide your company with a lump sum payment in exchange for a share of future credit card sales.

Here are the steps:

  1. MP Star will review, with you, your company’s credit card transactions from the most recent six months.
  2. Based on the review, MP Star will provide your company with a cash advance that you can use immediately for normal expenses associated with your business.
  3. To repay the advance, a percentage of credit card sales – previously agreed upon by you and MP Star – will be repaid to MP Star each month.
  4. Since payments are based on a percentage of credit card transactions, you repay less during slow periods and more when business is very good.

Advantages of Credit Card Factoring

Here’s how credit card/merchant funding with MP Star can help your business:

  • Easy set-up
  • Fast access to cash
  • No additional bank debt
  • Your customers will not notice any difference
  • Payment flexibility (you pay back less during slow periods)

Getting Started with Credit Card Factoring

Want to learn more?

Call MP Star Financial at (800) 833-3765, extension 150.

With more than 30 years’ experience in small business finance/invoice factoring, we are ready to answer your questions and help you figure out if credit card factoring is right for your company.

Get your Free E-Book: How Invoice Factoring Can Help You Grow Your Business!

About Us

Since 1995, MP Star Financial has helped more than 1,000 businesses and people like you resolve cash flow issues.

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Phone: 1-800-833-3765
MP Star Financial
33519 Solon Road, Cleveland, OH 44139-2918

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