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A Credit Card Advance Can Provide Inventory Financing For the Holiday Season

If there’s ever a time to stock up on inventory, it’s the holidays. Even during slow economic times, retail sales are higher during the holidays than during the rest of the year. Unfortunately, this year, business experts and small business owners alike fear that inventory purchases for the holidays may be difficult as several institutions are wary of offering inventory financing. According to Karen E. Klein, an entrepreneurship and small business journalist, “Banks are clamping down on credit lines to small businesses, which could leave some of them short on inventory for holiday sales,” as stated in her recent Business Week article. She quotes Bill Hampel, chief economist for the trade group

Credit Union National Assn., who says, “For a lot of business lenders, inventory financing is essentially viewed as unsecured lending.”

Credit card advance lenders, on the other hand, are different. They offer small business owners up to $500,000 in business funds, which can be used with no restrictions. Therefore, if a borrower wishes to use his/her funds to purchase extra inventory for the holidays, he/she is free to do so. Advance providers already offer unsecured funds, on a daily basis. There is no collateral required to receive a business cash advance. Providers simply review applicants’ merchant statements. Based on the applicants’ monthly CC sales, the provider determines the credit card advance amount. Then, when customers use their credit cards to pay for products and services, a small percentage of those sales goes toward repaying the advance.

Essentially, the advance is perfect for inventory financing, because it virtually pays for its self. Merchants use their credit card advances to purchase extra inventory, customers then buy that inventory, and with each customer that uses his/her credit card to pay for a product, the advance is paid off more and more.

Get a head start on your inventory purchases for this holiday season and get a free online quote [http://www.creditcardadvance.us] for your credit card advance today!