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Not sure I understand your question. Can you please rephrase it?
Those merchant card loan thing
Who are you?? Where are you?? What are you talking about??
Please advice on what??
It sounds like you're talking about a merchant loan - where you borrow against future credit card sales. Certainly not a hoax, but not necessarily one of the best ways to borrow money either (in my opinion).
It sounds like your refering to a merchant cash advance. It is not another hoax. Basically, lets say you make $10,000 in credit card sales a month, this would qualify you for $12,500 advance. So you borrow the $12,500, and are given a 1.3 factor rate (ranges from 1.20 to 1.45). This means your overall pay back would be $16,250. You set up repayment for 9 months. $16,250 over 9 months is approximately $1,805.55, a month. $1,805.55 out of your original monthly sales of $10,000, comes out to about 18%. So your hold back percentage would be 18%. Generally, you will pay 18% of your daily credit card sales to pay off the advance. If you make $500 on one day; $90 would go towards your advance, $410 would go to you. If you make $1000 on another day; $180 would go towards the advacne, $820 would go to you. Basically if your sales go down to $5000 one month, you will only pay $900; if your sales go up to $20,000, you pay $3,600. Let me know if you have any further questions.
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