Business Loans on Credit Card Sales
Delancey Street makes getting a business loan on credit card sales fast and easy. We can help you get a business loan based on your existing, and future, credit card sales.
Our goal is to help businesses, who get sales via debit or credit cards, get a business loan. Many businesses have a strong history of credit card, and debit card, sales. Many small businesses have dips of revenue and minimal cash reserves, which makes it difficult to make monthly fixed payments on business loans. Paying your bills on time can be difficult, especially if you have fluctuations in business revenue. If you are unable to make payments on time, you will get bad business credit – this is simply a fact. As long as you have consistent credit card sales, you can get funding with a business loan against credit card sales.
This is a type of working capital loan provided by Delancey Street which is easy to pay back. Regardless of the challenges you have, a business loan against future credit card sales can help. When you get a business loan on credit card sales, you’re growing your business with a tailor made merchant cash advance financing solution. Delancey Street is proud to help businesses nationwide, including retail stores, restaurants, and more. Many of our customers come back to us, for all of their future financing needs.
What is a credit card processing loan
Business loans against future credit card sales are known as merchant cash advances, or “credit card processing loans.” You get a lump sum amount of money that is based on revenue you are going to generate in debit, and credit card, transactions. You repay the credit card processing loan by making payments which are automatically deducted from your debit and credit card sales automatically at set periods/intervals. The repayment is done as a “%” of your sales, and this percent is agreed upon when you initial accept the terms of the credit card processing loan. The beauty of credit card processing loans is that because repayment is based on a % of the overall loan, if you have a slow month – then you pay less. You aren’t committed to a strict, large, payment. You are only obligated to repay the % of overall sales you agree to.
Instead of interest, fees for credit card processing loans are known as “factor rates,” and “retrieval rates,” which are fixed percentages. The factor rate is known as interest. In contrast, the retrieval rate is how much is deducted from your daily sales for payments. You can make payments at any frequency you wish. Most businesses who ask for a credit card processing loan make their payments on a daily basis.
What do you need a credit card processing loan for?
Credit card processing loans can be used for anything. You can use them to pay for emergencies, pay for business expenses during a slow period of time, consolidate your business debt, or invest in long term business initiatives. Many businesses often use a credit card processing loan to seize an immediate business opportunity. Sometimes, opportunities arise – and you just don’t have the funds on hand to seize them. When this happens, you can use a credit card processing loan to get money for it. Business loans against credit card sales allow you to pay for huge expenses without having to worry about paying your bill at the end of the month. With a business loan against your future credit card sales, you can make quick and decisive business decisions without worrying about how much cash you have on hand.
Small business loans can be a great way to overcome your lack of capital. However, it’s important to know the various business loan and cash advance options that are available to you. At Delancey Street, we have the ability to provide you with loans in large amounts for any type of business.
We pride ourselves on a fast approval process. When you have a small business, obtaining a loan could be exactly what you need. It may be necessary to expand your business, take on a new project or even explore a new marketing opportunity. We can fund the loan in approximately two business days. Plus, we offer flexible repayment plans. Bad credit is okay, too, making it easier for you to get the necessary small business loan.
Your Credit Scores
Prior to completing a loan application, you should identify your creditworthiness. This includes the credit score for your business as well as for you personally. If you have bad credit, it may be more difficult for you to get a traditional bank loan. This is when other lenders may be able to step in to assist you.
You should plan on requesting credit reports from the various credit bureaus. This way, you can look at what information they have. If there are any errors, you can get them fixed in order to improve your credit.
It may also be necessary to work on improving your credit before making a loan application. This includes settling delinquent debts and paying all of your bills on time. Then, when you do go to apply for a small business loan, your credit will be better in order to get a better loan.
Get the Documentation Ready
You should gather some documentation so that it is ready for making your loan application. This includes collecting financial statements as well as an income statement. Depending on the lender, you may also need to provide a cash flow statement and a balance sheet. The statements should look as professional as possible so that a bank will take you seriously.
If you don’t have the necessary documents or a bank denies you a loan, there are still bad credit small business loans that may be available to you.
Understand the Loan Terms
Understanding the loan terms is a critical component of obtaining a loan. You need to look at what a lender is going to charge you for interest rates, any additional fees, and the repayment plan.
The loan terms can vary significantly from lender to lender. Additionally, if you have bad credit, you may not get the best loan terms. This is when you have to decide whether getting a loan is the right financial move for your business. You will want to identify the needs within your business as well as your ability to pay back the loan before you sign on the dotted line.
Make an Application
Once you decide that you are ready for a bad credit small business loan, make the application. We can provide fast approval and the funding needed so that you can spend the money on whatever you desire for your business. It can be the best way to move your business forward when you lack the necessary capital.
Simply take the time to identify your needs as a business, review your credit history, and, then, work with us on the various options available. We can help you to get the money that is necessary for your business to succeed .