As alternative financing options proliferate, payback in the form of credit card split funding is still the way to go for a variety of reasons. The most compelling are:
• No risk of overdraft
• Payback ebbs and flows with business swings
• It’s the best leverage of future sales for merchants that process cards.
There has recently been much buzz about ACH funding platforms. The buzz seems to ignore the pitfalls of ACH funding:
• There is always a risk of overdraft,
• There are no adjustments for sales swings.
• Funding amounts are limited by stricter underwriting requirements.
It can sometimes be tough to manage all of your once-monthly fixed payments such as rent, vehicles, or suppliers. Stop and imagine adding 22 more such fixed payments. The beauty of credit card repayment is that a few NSF’s will not disqualify funding, and moreover, merchants need not worry about sales slumps as repayment flows with sales volume.