Credit card factoring is one way to get funding to businesses that are suffering from cash flow problems. I don't have to tell you how difficult it is to keep up with vendors and other business expenses each month. Whatever the reason, an interruption of cash flow can seriously hurt the company's credit rating and cause even more problems, ultimately causing the decline or failure of their business.
Generally, a factor is either a single investor or a business that fronts money to meet the company's cash flow requirements that is to be paid back within a set period of time - much like a short term loan. There are credit card receivables, invoice receivables, accounts receivable factoring and other forms that are routinely used by businesses that tend to have cash flow issues every month or during slow seasons.
Specifically; credit card factoring is when a factor gives your company cash upfront based on your future credit card sales.
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