Get the money you need quickly for your business in Los Angeles or Southern California through a merchant cash advance from Delancy Street. We are a national company that can provide Southern California companies with a variety of solutions to help them get the cash flow that they need to operate efficiently and grow their businesses.
What is a Merchant Cash Advance?
It isn’t a loan, rather, it’s an advance on your receipts that you will typically get over a specified period in the future. Merchant cash advances, commonly called MCAs have historically been used by businesses whose revenue comes primarily from credit or debit card sales. However, Delancy has made this financing instrument available to many other types of operations, giving business owners an upfront sum of cash in exchange for a percentage of your future sales. The advance is paid into your business checking account, typically within 24 hours after you are approved for this financing.
Under the terms of the MCA, Delancy gives you a lump sum of money that can be repaid daily or weekly over a specified period of time. We will also automatically deduct a percentage of your proceeds, which is called the holdback or retrieval rate that ranges from five percent to 20 percent. This percentage is based on several factors including the amount that you borrow, your sales and period of time you require to repay the proceeds. Our repayment terms range from 30 days to two years.
Delancy is able to provide customers with MCAs that range from 50 percent to 150 percent of their monthly sales. If you borrow and repay the money back on time, it’s possible that you can get even more in the future. Your credit score is irrelevant. We look at your business revenue stream to determine the amount of your cash advance, so if you have a poor credit score, it never even plays into the equation.
Benefits of an MCA
Getting an MCA will provide your business with a number of decided advantages. These include:
- An uncomplicated application and approval process
- Funds deposited into your business checking account in 24 to 48 hours
- Flexibility that considers credit/debit card transactions and checks
- Credit score doesn’t matter
- No collateral needed
- High limits that allow you to get the money you need when you need it
Qualifying for an MCA
The application process is simple. Our loan officers will ask you questions about your business such as how well it is performing, what your typical monthly revenue is, how profitable your operations are and how long you expect it will take to repay the advance. Once Delancey has this information, we will offer you an advance amount and a payment schedule that fits your needs.
We will also ask for a copy of your driver’s license to make sure that you are you, a voided check, bank statements and proof that you actually own the company. Once we have this information in hand we can issue advances that typically range from $10,000 to $5 million at interest rates starting at 1.09 percent based on your risk assessment. There is no penalty for prepayment, so if you have the ability to pay back the advance before the end of your term, you can do so. It’s that simple.
Delancey Street understands that businesses funding, and sometimes their business can be considered a high risk. When normal lenders say no, we say yes. We pride ourselves on helping businesses get financing when there’s no other alternative. Regardless of whether you’re in a high risk industry OR your business is a high risk due to financial issues – WE CAN HELP. Below you’ll find information about high risk merchant cash advances and how we can help.
Financing a business or keeping a company afloat is essential for success and future growth opportunities. When you are in need of financial assistance and prefer an alternative route to traditional loans and financing, consider applying for a merchant cash advance.
What is a High Risk merchant cash advance?
A high risk merchant cash advance provides business owners with a lump sum of money to help with covering expenses, payroll, and to keep companies afloat. It is not uncommon for entrepreneurs to experience financial struggles, which is why a merchant cash advance is an optimal solution to remain in business.
Merchant cash advances do not work the same as traditional business loans. With a merchant cash advance, the money you receive is a non-recourse loan, meaning there are no penalties involved in the process. With a traditional business loan or line of credit, you are often required to utilize your home, other property, or your entire business as a form of collateral. Merchant cash advances take your current account receivables and an estimated revenue stream you will generate to determine the amount of money you qualify for once you apply.
How Can a High Risk merchant cash advance Be Used?
Fortunately, with a merchant cash advance, you have the financial flexibility and freedom to use your funds as you please in order to keep your business afloat. Some of the most common uses for a merchant cash advance include:
- Payroll: Keep your employees’ paychecks updated and avoid nonpayment issues.
- Equipment: Invest in new equipment to continuously grow your business.
- Staffing: Hire new employees or pay for contractors that benefit your company.
- Expenses: Manage monthly bills and unexpected business expenses on a whim with a merchant cash advance.
- Growth and expansion: Invest in the future of your business.
- Liquid cash: Keep the cash from your merchant advance on-hand for potential unforeseen expenses and other projects that benefit the future of your business.
Applying for a merchant cash advance
One of the biggest appeals of a merchant cash advance is the ability to apply for the money you require using a one-page application. Most traditional banking institutions and loan firms require a lengthy application process and can take up to six or eight weeks for approval. When you are in need of money for your business immediately, a merchant cash advance service is an ideal route.
How Much Cash Can I Receive?
Merchant cash advances rely heavily on your company’s track record and current account receivables. The amount you are able to receive with a merchant cash advance depends on the amount of revenue your business generates each year and the number of sales you make each day. With a merchant cash advance, it is possible to receive up to $5 million if your business is able to sustain the loan and pay it back within a timely manner. Most repayment agreements range anywhere from 90 days to more than 18 months, allowing you time to get your company finances in order and back on track.
How Long Does Approval Take?
Approval for a merchant cash advance often requires anywhere from 24-48 hours which is much less time than traditional lenders. Once you are approved for your cash advance, receive the funds immediately deposited into your business bank account.
When you have a thorough understanding of how merchant cash advances work, apply to receive one for your business in less time than when choosing a traditional lending firm. Working together with a merchant cash advance service provides you with the flexibility necessary to expand your business as you see fit.