How you can use a small business loan

Small business owners can use loans to grow their business. You can use the funds however you wish.

Cover Expenses

Pay for any unexpected expenses that arise.

Invest in your business

Use the loan to grow your business however you wish.

Payroll

Use the loan to pay your employees.

Liquid

Keep the cash on hand for future expenses.

Equipment

Buy new equipment to grow your business.

Staff

Use the loan to hire new employees.

We Fund Fast

24-48 Hours

Loans up to

$10 Million

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5 Stars

Delancey Street Can Help

We're committed to building relationships and helping people all over the USA get access to the RIGHT loan for them. Regardless

Trusted

We're frequently interviewed by major media organizations.

Easy Application

Our app process is super easy. All it takes is one application, and we handle the rest for you.

Service

Service is key. You can ask for advice on ANYTHING and we'll bend over to help.

Experts

Many of our team members are former business owners, and understand your challenges.

Customized

We customize each loan for you, and to your unique specs. Everything is customized.

Universal

We help virtually any industry, any business, anywhere in the USA. It doesn't matter.

Nationwide

We fund business loans nationwide. It doesn't matter where you are, we can help you.

Honesty

This is crucial, and critical. We are 100% honest with our clients, and never strive for less.

Hear from people we’ve helped

“Delancey Street funded our e-commerce shop and really gave us the chance to grow our business significantly.”

- Leena, VP of Sales at Waist Karma

If you own a business that makes debit/credit card sales, then you’re eligible for something called a merchant cash advance (MCA). This type of borrowing is easier to qualify for than traditional long-term and short-term loans, and is not even considered by most financial experts to be a lone. In fact, it’s simply an “advance” on your own credit/debit card sales. Because you’re basically borrowing your own money, so that you can get a lot of cash at once, this type of loan doesn’t affect credit rating profiles either.

Lenders of merchant cash advances still analyze whether or not they should lend to you, and then of course they calculate how much they should lend. What they do is analyze your receipts to see how much money you take in from your credit/debit card transactions. Based on that analysis, they can offer you a MCA. Businesses that have credit issues or limited collateral will often look to MCA options when they need a large sum of cash at once.

How a “Holdback” Affects Your Business

MCA lenders will employ something called a “holdback” – typically 10-20% of your daily sales from credit and debit card transactions – and that’s the money they will keep from your daily bottom line. Of course, the holdback is going to go toward repaying your MCA, but it can still prove to be a damper over time as your profits are cut into by the holdback (something that is employed in addition to the normal interest you pay on the MCA). Holdbacks can be very discouraging for businesses with limited credit who might have been struggling anyway, and if you hit a rough patch, it can become increasingly difficult to afford the 10-20% off your profits. For this reason, many people look for alternative solutions to MCA arrangements.

Businesses who don’t have other options because of credit or limited collateral will obviously take advantage of the MCA. Despite the downsides, it’s still better than losing your business entirely or missing out on a great investment opportunity you might be able to grab if you have that large sum of cash. So there will always be businesses who use the MCA model of borrowing, and that’s great. However, there can be simpler, less expensive ways of borrowing.

Other Ways To Borrow

Because of the very costly nature of the MCA, businesses like to explore other options before committing, and that’s a good thing. Lenders like OnDeck are able to offer speedy, lower interest loans that get the job done without implementing holdbacks or other very high interest rate methods. OnDeck is able to meet the needs of businesses and even be very flexible about giving even bad credit borrowers a chance to help their business with a short-term loan.

A short-term loan will always have a higher interest rate than a long-term loan, but because of the money you will save by not taking out a merchant cash advance, you should be able to pay off the loan quicker. And this will certainly reduce the interest that you’re paying, as the quicker a loan is paid off, the less interest you pay. OnDeck is easy to get started with, has a quick and easy application, and they have a great team of understanding loan specialists who love to help businesses just like yours get a step ahead. As an A+ rated business with the BBB and having helped with billions of dollars in cash, OnDeck is an excellent alternative to the merchant cash advance.