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Are you struggling to keep up with your existing business debt? Do you have several maxed out credit cards, merchant cash advances, etc? You might be looking for a way to manage all of this debt. Thankfully, Delancey Street has a number of financial options to help you. 


Debt is a huge part of running a small business. A business loan, a line of credit, or business credit card, can help you hire new employees, finance growth etc. But if you have too much debt, it can stifle your cash flow and put your business in jeopardy. The less money you owe, the more you have to reinvest. Often many business owners have immense amounts of debt through merchant cash advance, term loans, and other financing options.

The average US small business owner has $195,000 of debt according to a study done by Experian. Delancey Street has a number of financing options that are amazing for small business owners.

Term Loans

If you have immense amount of debt in the form of merchant cash advances, it’s possible to refinance the debt through a term loan via the SBA, or some other funding source. There are other traditional banks that offer term loans which can help you exit your existing merchant cash advance obligations.

Merchant Cash Advance Consolidation

This is another great way to get your small business out of debt. There are many merchant cash advance consolidation companies out there that will “buy out,” existing cash advances. They will payoff existing merchant cash advances, and give you a new combined consolidation payment. In addition, they will extend the term and lower your daily payment, or possibly turn it into a weekly payment. This makes it much easier to manage your cash flow, which is a big issue most business owners face.

Secured Line of Credit

If you own real estate, or some other asset, it’s possible to get a secured business term loan which will buyout your existing superbly high interest merchant cash advances. Many hard money lenders will offer you a private money loan at an APR of 8-10%. This makes it possible to fund your business without having to worry about the cash flow problems you may face with the daily payments of a merchant cash advance/weekly payment. Often, hard money loans, are offered at 10% APR, with a monthly (interest only) payment.

Invoice Factoring

Another great way of improving your cash flow, and how to get out from under business debt, is trading your invoices for immediate cashflow. Invoice factoring is an overlooked method of getting your business out from under debt. With invoice factoring, you can trade your invoices for a % of it’s face value. For example, if you factor an invoice of $10,000 – you can expect a percent of the invoices value immediately. Overtime, you can expect the remaining balance paid to you. The great thing about invoice factoring is that it is a relatively cheap form of financing. It’s not uncommon for invoice factoring companies to charge 8-10% of the invoice value.

Here are some great ways to get your business out of debt

Take account of your debt: One of the most important things is to sort your debts by interest rate and monthly payment. This means you have to include payments on business loans, your credit cards, your line of credit, you also should include things like payments to vendors. By outlining your debt out, you can prioritize which debt you need to tackle first. Some people will recommend you target high interest rate debt. New small business should have to repay all of your debt within the first 12 months in order to lower the risk of going bankrupt.

Increase revenue: This is easier said than done, but it’s important to say the least. For example, how are you rewarding your loyal customers? Create a loyalty program in order to increase your customer satisfaction and retention. Another strategy to increase revenue is getting active on social media. Respond quickly to comments and reviews on places like Yelp.

Raise prices: This is an overlooked strategy, but often many businesses are able to increase revenue by 5-10% just by raising prices. For example, if your prices have been lower than the market, it might be time to increase prices so you can generate more revenue. Volume discounts can help your business stay competitive.

Cut costs: This is the ideal way of boosting sales in order to get your business out from under debt. If your expenses are too high, then you might want to consider cutting them. For example, sell of equipment, office supplies, items you don’t need. Consider buying used equipment, or leasing the equipment. Another way of reducing costs is downsizing to a smaller office, with lower rent. Another great method of reducing debt is splitting costs with other companies.

Refinance debt: Many types of debt are very high interest. It’s important you consider refinancing your high interest debt, like variable rate debt, credit card balances, and lines of credit. If you can’t afford to pay debt in full, consider debt consolidation or debt refinancing, especially if you have strong personal and business credit. With refinancing you can take out lower interest rate loans to repay the original loan you took. With debt consolidation you can combine several loans into one. If you can change a variable rate loan to a fixed rate, and then pay it down quickly – it can be an ideal situation.

Business credit card debt can be refinanced, or consolidated, via a balance transfer to a new card with 0% interest.

Shorten payment terms with clients: If your business has clients on a long term payment plan, or if they constantly pay late – then revise payment terms. For example, it might be good to give your clients 30 days, or perhaps offer an early payment discount, or a late payment penalty.

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