Executive Summary: Working Capital and Business Cash Advances

by Stephen A. Bush


This Working Capital Finance Executive Summary will provide the following information:

  1. Three key commercial lending changes positively effecting the use of business cash advance programs as well as other short-term working capital programs offered by AEX Commercial Financing Group.
  2. Five primary reasons to consider obtaining working capital with business cash advances.
  3. Ten problems to avoid with credit card processing, business cash advances and credit card factoring.
  4. Six criteria for business cash advances up to $300,000.


A Special Comment:
Short-Term Working Capital Options Have Changed

Even though business cash advances have been a practical short-term working capital finance option for several years, many businesses chose other approaches to get needed funding. The current volatility in commercial financing options has changed how working capital advances should be evaluated by small businesses.

While there are still other financing choices which should be evaluated, the harsh reality for most business owners is that effective alternatives to get operating cash quickly are limited. There are at least three changes which have occurred to make business cash advances more feasible for businesses.

Here are three of the key factors behind the rapidly-changing funding environment for small businesses:

First, small business unsecured lines of credit have all but disappeared.

Second, many banks are exiting business lending.

Third, most banks are increasingly requiring more collateral for commercial loans.

Please note that AEX now offers several new working capital financing options (in addition to merchant cash advances based on credit card receivables factoring) that can also successfully address the three key business funding change issues noted.

ONE EXAMPLE — AEX has a short-term commercial funding program which should help business owners needing short-term working capital (up to one year). Amounts funded through these short-term commercial loans are generally $100,000 or less.




5 Reasons for Obtaining Working Capital with a Business Cash Advance

  1. A business cash advance based on credit card financing is one of the few viable options for reliably obtaining short-term working capital
  2. Credit card factoring is available to most businesses that accept credit cards in their business transactions
  3. There is no need for collateral
  4. There should not be any up-front fees or closing costs
  5. Funds can be obtained very quickly



10 Problems to Avoid with Credit Card Processing and Credit Card Factoring


There are a number of problems to be avoided with business credit card financing programs.

  1. Maximum business cash advance of $10,000 to $50,000
  2. Up-front fees
  3. Collateral required
  4. Closing costs
  5. 2-3 years or more in business required to qualify
  6. Financial Statements required regardless of business cash advance amount (Note: larger cash advances can involve additional information such as financials)
  7. Fixed payments to pay off the business cash advance
  8. Fixed term to pay off the working capital financing
  9. 12 to 24 months of $10,000 to $25,000 (or more) in credit card sales required
  10. High credit scores (frequently 680 to 700) required to qualify


Our 6 Criteria for Business Cash Advances up to $300,000

  1. One year as service or retail business
  2. Business accepts credit cards as a form of payment
  3. Ability to document credit card sales of $5000 or more per month for the last six months
  4. Acceptable personal and business credit (minimum personal credit scores of 500)
  5. No open tax liens, judgments or bankruptcies
  6. If leasing: in good standing with landlord and at least one year remaining on lease



AEX Business Cash Advance and Working Capital Finance Program


It is not necessary to accept ANY of the 10 problems listed above in order to obtain working capital based on future credit card sales and business cash advances. AEX Commercial Financing Group has eliminated ALL of these potential problems from the Working Capital Program that it uses for their clients. Here is an overview of our commercial finance program:

  1. Business cash advances from $5000 to $300,000
  2. No up-front fees or closing costs
  3. No financials required for most situations although larger business cash advances will sometimes require additional information such as financials
  4. No set term to pay off the business cash advance although there is a minimum of 90 days
  5. No collateral required
  6. No fixed payments - a small percentage of each credit card sale is collected from one of the processing banks as goods and services are purchased
  7. Easy 2-page application: AEX Commercial Financing Group can email or fax the application for its Working Capital Program to you. This application will be requested only AFTER a discussion with AEX. Please note our policy described below about avoiding the use of online business financing applications.


AEX Commercial Financing Group Application Policy


AEX advises business owners NOT to complete an online application.

A commercial borrower working with AEX Commercial Financing Group will not be requested to submit any application until they have completed a thorough discussion with AEX confirming that business financing is feasible for their unique business situation.

By completing an online business finance application, business owners would be submitting confidential business and personal information to a lender before they should. There are numerous commercial loan and business cash advance sites that urge commercial borrowers to complete an application before a business owner even has a conversation with a potential lender.

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