Los Angeles Merchant Cash Advance
Delancey Street is a top rated Los Angeles merchant cash advance provider. We understand your business has needs, and needs funding. We can help. Using our proprietary algorithm, we’re able to evaluate your cash flow – and help you get the funding you need without high interest rates and fees that many other merchant cash advance companies in Los Angeles charge. We recognize the importance of having extra capital – especially if you’re having a bad month, and can’t make basic payments like payroll. That’s where a Los Angeles merchant cash advance comes in handy!
What is a Los Angeles merchant cash advance
This is a cash advance, not a loan. You get a lump sum of cash, in exchange for a percent of future credit/debit card sales. The cash advances we provide give you capital that you otherwise might not qualify for. Many businesses who are candidates for merchant cash advances don’t qualify for traditional financing – or traditional financing may not be quick enough. When you get a merchant cash advance, you’re able to stay afloat while your account receivables catches up with your business. We believe in being your partner, and we’ll always advise you in whatever is your best interest. We believe every business deserves the opportunity to succeed and thrive – sometimes you need a cash advance to help. We want you to consider us your business partner who bails you out of a bad month. When you work with us, you aren’t putting your business or personal assets at risk. Many people think because of poor credit, they won’t qualify. That’s categorically false. We care about your business, it’s account receivables, and how likely it is your business will thrive. Merchant cash advances amazing for people who accept credit card payments, or have some other form of recurring – and transparent – stream of revenue. This isn’t a loan, it’s a cash advance against your future proceeds. We take a calculated risk that you won’t default on the loan, and will repay the loan. We work with merchants in all industries and verticals. You can get the cash advance within a week, without immense paperwork. It’s common for most cash advances to get funded in 24-48 hours.
You won’t lose your home, or other personal property by taking a merchant cash advance from us. You don’t need to worry about forfeiting your personal or business assets either. If you go out of business, you don’t have to worry about lawsuits, or risk of repayment. These are non-recourse loans, which means theres no penalty. Depending on how risky your business is, in some cases, a Los Angeles merchant cash advance company might ask you to sign a personal guarantee. This is rare, but if your business is “risky,” and isn’t old – it might be required to secure the loan. Typically though, these types of cash advances are non-recourse – which means there’s no risk or penalty to you if you close down the business.
For many business owners, getting access to funding can be challenging. Traditional banks operate under stringent lending practices that limit their ability to provide fast funding to companies that do not meet their lending requirements for any number of reasons.
Los Angeles merchant cash advance services offer underserved industries and businesses access to fast funding for their operational needs. Instead of basing creditworthiness on factors like personal or business credit or secured collateral, they use recent financials and credit card sales statements from the company to qualify for an advance.
Industries Los Angeles Merchant cash advances serve:
Startup Companies – As a startup company, two things can put financial stress on a business owner. Not having enough cash flow to grow faster is one. The other is rapid growth. Without adequate free flowing cash to buy inventory or hire additional staff, you want to avoid this growing pain! Funds from a merchant cash advance service can get used by startup business owners for any purpose.
Need to hire? Do it with confidence and payroll.
Do you need new inventory? Access a lump sum to get the best price on fresh products.
Did you have a bad month? Merchant cash advances give startup business owners access to a lump sum, helpful for evening out rough patches in business operations.
Need to ramp up your marketing efforts? Use a merchant cash advance to rev up your marketing campaigns.
Commercial Real Estate – There’s little doubt that embarking on a commercial real estate project requires access to sizeable amounts of capital. If you’re having troubles accessing conventional loans from traditional lenders, a merchant cash advance could be right for your project needs.
Need to redevelop land? Merchant cash advance providers can offer access to millions of dollars to finance the project. These funds can get used for teardowns, construction, and new commercial developments.
Need to refinance? Working with a los angeles merchant cash advance provider offers commercial real estate investors the ability to refinance their properties quickly and conveniently.
Want to justify a higher asking price on a property? Funds from a merchant cash advance can get used for repairs, renovations, and improvements on rehab or fix and flip homes. Regardless of whether you need to make just a few alterations or a complete overhaul, a merchant cash advance gives you access to the funds you need to make a more profitable sale.
Need to update and do maintenance on your rental properties? Owning rental properties can be a challenging business. It’s essential to assure that your rental properties get updated and maintained for safety, health, and living concerns. For some landlords, an expensive, unexpected repair, such as needing a new roof or dealing with frozen pipes costs more than what they have on hand. Merchant cash advances can get used to cover costs for repairs, new appliances, or even upgrades such as new flooring or energy efficient windows.
Benefits of a Los Angeles merchant cash advance:
Access to larger amounts of capital – In many cases, merchant cash advance providers can offer anywhere from 50% – 250% of the businesses anticipated credit card sales transactions. For companies struggling with cash flow, these funds help keep the business running smoothly during slow periods.
Bad credit OK – When you have a dream to build and grow your business, having the financial backing you need to make it become a reality is essential. Merchant cash advance providers work with real estate investors and developers who have less than perfect credit to secure financing for their real estate projects of all sizes.
Fast Funding – Timing is everything.That is why merchant cash advance providers process all cash advance applications in hours, not weeks. Qualified business owners who agree to the terms of the contract can get funds deposited to their company checking account in 48 hours or less. Once deposited, funds are available to get used in a way that’s needed.
Is a Los Angeles merchant cash advance right for you?
Like all financial services, read and understand the terms of the agreement. Merchant cash advances have high fees, and daily repayment of the cash advance starts upon issuance.
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.
Merchant Cash Advances
A merchant cash advance isn’t a loan. It’s a cash advance we give you based on credit card sales that are deposited in your business merchant account. Business owners can apply for an MCA from Delancey Street and get funding within 24 hours. We deposit the funds directly into your business checking account fast.
Pro’s of merchant cash advances
- Fast access to funds
- Easy approval process
- Bad credit is ok
- Great for a whole array of businesses
- Con’s of Merchant Cash Advances
High Fees than traditional business loans
Daily reduction of cash flow to repay merchant cash advance
You can’t merchant service providers until loan repaid
Merchant Cash Advances Explained
If you need to raise capital fast for your business, a merchant cash advance is a great idea. It’s a fast way to raise funding. The funds can be used for anything you need. Some businesses use merchant cash advance to pay for bills that past due. Often, business owners turn to merchant cash advances due to a poor month, or because they need quick cash. Regardless of why you need it – there are advantages and disadvantages. After reading this, you should get a better understanding of:
- What a merchant cash advance is
- The pro’s and con’s of mca
- Who a merchant cash advance is right for
- Why business shoulders need to be careful with merchant cash advance
- What alternatives you have to merchant cash advance when times is of the essence
How merchant cash advances work
Merchant cash advances aren’t a loan. They are an advance, a payment given against your future income. The merchant cash advance provider is giving you a lump sum, which is then repaid automatically using a percent of merchant account daily proceeds. The % you pay is referred to as the holdback, or retrieval rate. This can be anywhere from 5% to 20%, based on the size of the advance, your credit card sales, and the agreed upon repayment period. Depending on the advance amount, terms for a mca can be as low as 90 days, or as long as 24 months. Repayment begins right after the funds are received.
The amount you borrow is based on your average credit card sales. Most mca providers will look at your receipts over the last 2-6 months in order to determine how much you qualify for. Generally, you can get a cash advance from 50 to 250% of your business’s monthly credit card transactions.
Benefits of Merchant Cash Advances With Bad Credit
Merchant Cash Advance’s have several benefits which make them appealing to business owners who need funding. When considering a merchant cash advance, below are some of the more important benefits to keep in mind
Straightforward applications: As with many types of small business loans, or lines of credit, applying for a mca is something you can do online. You can upload documents online, like your business tax returns, bank account statements, credit card processing statements, and more – online in a few minutes.
Funding is fast: One of the main benefits of a mca is the fact you can get approval fast, and funding even faster. MCA’s can give you a decision within a few hours and give you funds even faster. This is great if you need money fast to cover payroll, or other business expenses that are time dependent.
Credit doesn’t matter: Most business loans demand you have a strong personal and business credit score. MCA lenders are lenient when it comes to credit. Your ability to get approved for a mca depends on how consistent your credit card sales are, and how long you’ve been in business. The MCA provider is reviewing your business, and it’s strength, versus your personal credit history. Keep in mind though, that mca will not help you improve your credit score
No collateral: When you ask a bank for a business loan it’s common they’ll ask for some type of collateral to get the loan. The collateral helps the bank make sure you won’t default on the loan. In a mca, you don’t have to put up any personal or business assets to get a cash advance.
Flexible payment: Small business loans have a fixed interest rate, and a fixed payment. It means you owe the same amount of money every month on your loan. This can be helpful for some, who need to budget their expenses. But for others, it can be a problem – especially if you have a slow month and can’t make the payment. MCA’s give you greater flexibility, since the payments are based on a % of your credit card sales. For example, a mca will require you to commit 10% of your credit card sales for repayment. The dollar amount will vary based on the total amount of sales for the month. This means you only give a proportion of what the business is bringing in – instead of a flat dollar amount which might be higher than what you’re earning for the month.
High limits: Bad credit merchant cash advance’s give you significant leeway in terms of how much you can borrow. It’s possible to get a mca of just a few thousand dollars. Some might even give you a cash advance up to $2 million. MCA have greater leeway to be flexible and offer more money – even though you don’t have credit or collateral.
Who should get a merchant cash advance bad credit
MCAs great for businesses who need fast cash and have a well established credit card transaction history. Retailers, or restaurants, are great examples of candidates. Cash advances can also be great for newer businesses who have a great history of credit card sales, but haven’t been operating long enough to build a credit history that traditional lender looks for.
Why business owners should be careful
There’s a lot of benefits to MCAs, but there’s downsides too. There’s one specific downside which can outweigh everything else – the cost. The costs involved with a merchant cash advance can easily outweigh anything else you might get in terms of convenience, etc.
Unlike a traditional loan, a merchant cash advance doesn’t have an APR. Instead, business owners who take a mca pay a factor rate. The factor rate is a decimal point number which represents the amount you have to repay to the provider who gave the cash advance. This can fee can vary, but will be between 1.1 and 1.5. The factor rate is one of the most confused, and misunderstood, aspect of a merchant cash advance because it makes the interest rate look lower than it really is. When you actually look at the number, you’ll see that getting a merchant cash advance is potentially very expensive.
Here’s a good example. Say you take a merchant cash advance of $50,000 – and have a factor rate of 1.3, with a 12 month term – the breakdown is the following. When you multiply the factor rate by the advance amount, you see the totally repayment comes to $65,000. When you look at initially, you’re paying an interest rate of 30%, but the APR could be higher based on the holdback amount.
If you agree to a holdback rate of 15% of daily billables, and your monthly credit card sales average $35,000 over the next year – the daily payment would be $175. The loan would take 372 days to repay. This would put the daily interest rate at 0.15% and the overall APR would be 53.9%. This is double the 30% rate you initially thought you were paying. If your business makes $40,000 in monthly credit card sales, then the APR would climb even higher to 61-62%. When you consider a merchant cash advance using the numbers above, you can see that it’s super expensive money – and you need to be careful before accepting it.