How do merchant cash advances work?
Merchant cash advances are one of many business financing options that Delancey Street provides. We have a number of financial tools at our disposal to help business owners get funding for whatever comes their way. We provide merchant cash advances to businesses all over USA. Merchant cash advances aren’t a loan – they are an advance payment against your future income. We provide you with a lump sum, which is then repaid using a % of your daily credit card receipts/bank deposits. This is great for businesses who have some short term financing needs, don’t necessarily have a strong credit history, and above all – have a recurring and steady stream of revenue. The % we take from your daily sales is known as the holdback/retrieval rate. It can range anywhere from 5% to 20% based on how much money you borrowed, your credit card sales, and the repayment period. Depending on how much money you were advanced, terms can be as short as 90 days or as long as 18 months. Repayment of the merchant cash advance begins immediately after you get the funds. The amount you can borrow when you work with Delancey Street on a merchant cash advance depends on your average credit card sales.