If your business accepts advance payments for products or services, then it’s likely you have experienced the pain of credit card holdbacks.

Credit card processors reduce their risk through hold backs (holding on to your cash from sales) and/or requiring you to post a letter of credit. With holdbacks, the processor will only release the cash after the product or service is delivered. Depending on your business model this delay can take months. Similarly, a letter of credit ties up available cash. These draconian risk mitigation measures create cash flow problems for capital intensive businesses and can significantly impact your cost of capital.

Business is hard enough. Trying to grow when someone is holding your cash can be debilitating. The old method of survival, raising additional money in capital markets, is a costly activity that forces you into dealing with market interest rates, expensive legal and brokerage fees, and the burden of repaying the debt.

Mace says

• No more credit card holdbacks/reserves

• No more letters of credit

• Increase cash to fund operations, without raising debt

Mace Group’s financial and insurance experts have decades of experience across all lines of insurance within the worldwide marketplace. This allows us to create unique and proprietary insurance products designed to remove credit card holdbacks and increase cash flow for capital intensive industries.

Our industry experts have exceptional relationships with leading credit card processors. Those relationships paired with our innovative insurance products, are designed to seamlessly eliminate credit card holdbacks.

Our experienced and licensed insurance brokers are standing by to answer questions and assist in any way.