Is money holding your business back? Delancey Street helps entrepreneurs like yourself – achieve your dreams. We create opportunities, by providing merchant cash advances for cannabis businesses. If you’re ready to expand your business or take things to the next level, then we want to speak to you.
It doesn’t matter how innovative your idea is, or how driven you are – if you don’t have the funds to achieve it. Traditional businesses can turn to a bank – but the cannabis industry doesn’t have that option. The industry is growing, and changing rapidly.
We help all cannabis businesses with cannabis merchant cash advances
- Cultivators who want to start doing extractions and need equipment
- Retail dispensaries that need more inventory, or control over their product
- Businesses who want to purchase land to cultivate product
- Real estate developers, who want to purchase a warehouse for cannabis growing
- You need money for software upgrades
Cannabis companies can turn to us for cannabis merchant cash advances
Traditional banks have strict guidelines and it’s difficult for cannabis/marijuana businesses to get funding. We’re different – we’ll fund you. As more states comes on board with legalized medical, or recreational, laws – there’s an enormous need for funding. We are here to help you. We are a startup helping cannabis companies get the merchant cash advance they need to invest in things like equipment financing, etc. With a marijuana merchant cash advance, you can get access to business capital that allows you to use your future revenue to obtain a loan. The loan is paid through a percent of your monthly revenue.
- This will allow you to grow your business
- Make larger payments when business is booming
- Make smaller payments when you might go through a slower period
- Great for seasonal companies, like cultivators who grow outdoors
Learn more about Merchant Cash Advances
The busy shopping season is a stressful time for many business owners. On the one hand, products are flying off the shelves. On the other hand, increased consumer demand requires extra staff, extended operating hours, and larger inventory counts. Having open access to free cash flow is critical.
If your company could benefit from a cash infusion to help make the busy holiday season go smoothly, a merchant cash advance could be a solution to position your company for success.
Merchant cash advances explained
Merchant cash advances are not to be confused with a traditional loan. Instead, this financial service offers business owners an advance payment on the companies future income. The merchant cash advance provider gives a ‘pre-payment’ in the form of a lump sum. This lump sum gets repaid automatically on a percentage basis daily. Called a ‘holdback’ or a retrieval rate, this percentage can fall between 5% to 20%. The holdback amount gets determined on factors including credit card sales receipts, the amount of the cash advance, as well as the payment terms. Merchant cash advance terms vary from as short as 90 days up to 2 years.
The amount that a merchant cash advance is willing to advance your business is dependant on the companies average credit card sales. Generally, they use receipts from the previous 2-6 months to determine how much money they can advance your business. It isn’t unusual for most operational businesses to qualify for 50% to 250% of your companies monthly credit card transactions.
Benefits of working with a merchant cash advance company
Working with a merchant cash advances offer business owners some benefits that make them an attractive option to secure business funding.
Apply securely online – Applying for a merchant cash advance couldn’t be easier. A secure portal allows applicants to upload all required documents and forms online without having to spend time driving to banks or talking with loan officers.
Quick funding – One reason merchant cash advances work well for businesses is that they offer fast approval and quick funding. In most cases, business owners will get a decision in a few short hours, and financing on agreed cash advances occurs shortly after.
Bad credit OK – To qualify for conventional business loans, an excellent credit score is often required. High credit scores are not necessary to be eligible for a Merchant cash advance. The most important factor is that your company has regular and reliable credit card transactions and that your company has a provable operating history.
Set payments – Merchant cash advances offer company owners more flexibility. All payments get based on a percentage of the companies credit card sales. Instead of paying a fixed monthly amount, merchant cash advances require borrowers to pay a percentage of daily credit card sales transactions pay back the cash advance. The nice thing is it doesn’t matter if you have a good day or a bad day, the payment will always be the same percentage that you agreed to. Typically, this rate varies between 5% to 20%. The more your company earns, the quicker you can repay the advance.
A merchant cash advance differs from a conventional loan in that there is no Annual Percentage Rate. Company owners who use merchant cash advances instead pay a factor rate. A factor rate is a decimal point number that is the amount that must get paid to the provider who issued the cash advance. This fee often varies between 1.1 and 1.5. It’s worth noting that the factor rate often gets misunderstood. With such a low number, it makes the interest rate appear smaller than it is. When you do the math, you’ll learn that a merchant cash advance can become quite expensive. Always make sure that you understand the terms and conditions of the cash advance to avoid misunderstandings later.
As a small or medium-sized company owner, it is always in your best interest to explore financing options that are available to you. By doing so, you’re taking steps to assure that your business runs smoothly and has the financial means to ready for the busy shopping season.