Many business owners often turn to a short term line of credit instead of a merchant cash advance, or business loan, in order to get cash flow to handle unexpected expenses. etc. Getting a line of credit from a traditional bank can be time consuming, and difficult. Often, in order to get fast funds – merchants get a merchant cash advance or a line of credit. If you need a line of credit fast, you need an alternative lender like Delancey Street. We specialize in lines of credit and merchant cash advances/short term loans.
We offer short term liens of credit, which essentially means we offer lines of credit in the range of $10,000 to $250,000. They are paid back over a short term than traditional lenders. Short term lines of credit like the ones offered by Delancey Street are repaid over a few months, as opposed to years. Short term lines of credit, like merchant cash advances, are more expensive than products offered by traditional banks. The exact interest rate you get on a Delancey Street line of credit, depends on the qualifications of your business, but are more reasonable than a merchant cash advance.
Lines of credit from Delancey Street are more expensive than longer term options offered by banks. But, lines of credit offered by Delancey Street are more accessible. Traditional bank financing is only a good option for qualified borrowers – those with high credit scores, strong financials, and successful businesses. Delancey Street lines of credits, like the merchant cash advances offered by Delancey Street, are available to less-qualified borrowers. It means you can qualify for a line of credit (similar to a merchant cash advance), with bad credit, weaker revenue, and shorter times in business. In order to compensate for the risk of lending to you, Delancey Street charges higher interest rates.
One of the other reasons shorter term lines of credit are more expensive is due to the speed. Like merchant cash advances, shorter term lines of credits are funded FAST. Lenders who offer a merchant cash advance / line of credit work super fast. For example, Delancey Street offers a short term line of credit with a completely online process. On top of that, Delancey Street doesn’t require much paperwork to apply for either a merchant cash advance or line of credit. We use a lot of technology and algorithms to determine what you would qualify for (in terms of a business cash advance / line of credit) with bare minimum amount of information.