I own a business and have seen in the past were certain lenders will
let you borrow against a portion of the monthly charges run through
your merchant credit card account. I have looked on the net and have
not uncovered any , yet I know that they are there. Who are they and
how can I contact them.

Hi gapgapgap-ga,

There are many lenders who will let you borrow against your future
credit card sales. This gives you working capital which could be used
to help build future sales volume.

The downside is that this is a VERY expensive form of borrowing. The
upside is that it may be easier to obtain this kind of finance than
some other kinds of finance.

This kind of borrowing is not something to be undertaken lightly, and
you should seek the advice of a qualified professional prior to
signing anything.

The arrangement is sometimes described as "receivable factoring",
which implies an advance against receivables rather than the creation
of debt. This is not to be confused with the forbidden practice of
"credit card factoring" (or "credit card laundering") where the sales
of one merchant are placed through the merchant account of another
merchant.

Here is an assortment of lenders. More can be found using the Google
searches below.

Fred Coutts will advance up to 30% of your average monthly credit card
turnover, repayable within six months. Costs typically range from 6.5%
to 7.5% of the amount borrowed PER MONTH. You need to have credit card
sales over $4000 per month, and 90 days of past credit card
statements.
http://www.fredcoutts.com/indexccloan.htm

Rapidpay offers advance funding of future credit card sales "up to
$50,000".
http://www.erapidpay.com/what.html

Advanceme offers funding from $5000 to $50,000. You must have been in
business for at least nine months, and have had credit card sales of
at least $5000 per month for at least five months. There is an online
application form.
http://www.bbean.com/Financiers/bbin167.htm

Business Financial Services offers this kind of funding to restaurants
and retailers.
http://www.prweb.com/releases/2002/4/prweb37586.php

Capital Consolidators, Inc. advances up to $75,000. You must have been
in business for at least a year, and have monthly credit card sales
over $7000. There is an online application form.
http://www.businessbroker.net/lenders2.ihtml

American Microloan advances from $5000 to $100,000 (70% to 100% of
average monthly credit card sales) for 6 to 9 months, to corporations
or limited liability companies such as restaurants, bars and retail
businesses.
http://www.americanmicroloan.com/program_frame.htm


Google search strategy:

"future credit card sales"
://www.google.com/search?q=%22future+credit+card+sales%22

factoring "credit card sales"
://www.google.com/search?q=factoring+%22credit+card+sales%22


Regards,
eiffel-ga