Securing funding for your small business is vital with it difficult to secure funding that will not hurt your line of credit. This is especially true when attempting to find a source of cash flow that will allow you to pay for such things as:
– Basic Expenses
– General Investments
An excellent way to secure funding is with the use of a merchant cash advance. Some things to know about merchant cash advances are how they work, their benefits, and how to secure a merchant cash advance in Los Angeles with Delancey Street.
What Is A Merchant Cash Advance
A merchant cash advance is a common financing option where a financial services company gives a lump sum of money to a business. The business and financial service then enter into an agreement where financial services company will take a portion of credit or debit card sales to pay back the sum. The merchant does not charge interest on the cash advance. Instead, they charge a flat rate fee for the advance. The merchant can collect their money in a couple of ways including:
– Taking A Portion Of Credit And Debit Card Sales Split By The Bank
– Processing Payment Then Transferring The Remainder To The Business
– Debiting The Businesses Checking Account After Reviewing Processing Information
These three methods of collecting money from the cash advance means that your small business does not need to manage the repayment process. In addition, it means that the repayment process is only a small portion of sales, and you will not need to plan for a large monthly payment to the merchant.
Benefits Of A Merchant Cash Advance
A merchant cash advance has a number of advantages over taking out a small business loan. A merchant cash advance will not hurt your line of credit. This means that you can keep your line of credit open for major investments such as purchasing property and equipment.
A merchant cash advance is very desirable for small businesses with little or no credit or bad credit. This is because the merchant collects money through the billing process, and so they will advance you money based upon your revenue. The merchant will often look at your clients’ credit when evaluating you for a cash advance.
A merchant cash advance is a quick way to secure a large sum of credit with merchant cash advances generally being geared towards short term funding for less than two years. This means that you can use a merchant cash advance as a quick way to secure funding for payroll and hiring.
Delancey Street Cash Advance
Delancey Street is a leading merchant with them serving the Los Angeles area. This financial services company offers their clients the opportunity to secure up to ten millions of dollars in funding. They can process cash advances quickly with them distributing lump sum payments inside of twenty-four to forty-eight hours. Delancey Street prides itself in helping small businesses with them offering cash advances for the redevelopment of property, hiring new staff, and restocking inventory.