If your company is seeking or has been refused for a tiny business loan, a collection of credit, unsecured business financing, or other initial business financing to use as "working capital" you may have heard of Credit Card Receivable Funding (CCRF) – but you aren't not quite sure what. CCRF is a substitute funding solution that many existing companies are able to use when they may qualify for traditional lender financing.
Credit Card Receivable Financing is a fast, easy and convenient way of getting working capital or a short-term business loan for a business that has accepted credit cards as payment due to its goods or services for at least the prior 6 months. Unfortunately, it is not available for startup loans, start-up funding, new company loans as will be explained later in this article. For more help search Patient Financing on the internet.
Yet, many business owners still don't totally understand the difference between Merchant Cash Advances (or business cash advances) and Credit Card Receivable Auto financing. The reason is they are incredibly similar in the requirements to qualify, term length and repayment method – nevertheless they are different.
Although both are termed as a form of credit card receivables funding, the primary (and most important) difference is; a Merchant Cash Enhance (MCA) is the genuine "purchase" of your future credit card receivables at a discounted rate.