How you can use a small business loan

Small business owners can use loans to grow their business. You can use the funds however you wish.

Cover Expenses

Pay for any unexpected expenses that arise.

Invest in your business

Use the loan to grow your business however you wish.


Use the loan to pay your employees.


Keep the cash on hand for future expenses.


Buy new equipment to grow your business.


Use the loan to hire new employees.

We Fund Fast

24-48 Hours

Loans up to

$10 Million

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5 Stars

Delancey Street Can Help

We're committed to building relationships and helping people all over the USA get access to the RIGHT loan for them. Regardless


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Easy Application

Our app process is super easy. All it takes is one application, and we handle the rest for you.


Service is key. You can ask for advice on ANYTHING and we'll bend over to help.


Many of our team members are former business owners, and understand your challenges.


We customize each loan for you, and to your unique specs. Everything is customized.


We help virtually any industry, any business, anywhere in the USA. It doesn't matter.


We fund business loans nationwide. It doesn't matter where you are, we can help you.


This is crucial, and critical. We are 100% honest with our clients, and never strive for less.

Hear from people we’ve helped

“Delancey Street funded our e-commerce shop and really gave us the chance to grow our business significantly.”

- Leena, VP of Sales at Waist Karma

Invoice Factoring

Delancey Street is a premier, and trustworthy, invoice financing company. We can help you turn unpaid customer invoices into quick cash, with invoice factoring and invoice financing. These are two great options for business owners who can’t pay for goods or services immediately, but need cash in order to keep their business running.

Invoice factoring is a form of financing used to get working capital. Businesses will sell their open invoices to a factoring company who gives them immediate cash. Invoice factoring is fast, simple, and a debt-free way of getting financing for companies who cannot wait months, or weeks, for payments. Invoice factoring is very simple, and straightforward. Companies who use invoice factoring typically provide a product, or service, to their customers. When it’s time to invoice the customer,  company will send the invoice to the factoring company. Our invoice factoring company will advance the company a % of the value of the invoice. The invoice is forwarded to the customer, who then pays the it on their normal terms. Once the invoice is paid to the company doing the invoice factoring – the remaining balance is paid to the company.

Invoice factoring can improve cash flow and there’s no interest

Invoice factoring isn’t a loan, and no interest is charged. Instead of paying interest, the cost of factoring, is based on how long it takes your customer to pay your invoice. Factoring fees are based on things like – dollar volume of invoices factored, credit, and payment history, of your customers and the expected payment terms.

What are the benefits of invoice factoring

Companies who use invoice factoring will see many benefits. First, factoring is based on a customer’s credit + payment history. Companies who aren’t eligible for traditional lending easily qualify for invoice factoring. Second, immediate access to money makes it possible for companies to meet their payroll needs, purchasing new materials, settle their payables, or other expenses. Bottom line – you get cash on hand.

The best part about invoice factoring is that you get access to funds you’ve already earned. Invoice factoring is known by many names, like invoice financing, accounts receivable financing, etc. Bottom line, with invoice factoring, you are selling your accounts receivables to a company like Delancey Street in order to get quick access to your money. Instead of waiting many weeks to get paid on your invoice, you can get an advance on those funds fast, which means you get immediate cash for business expenses you have. For example, you can use the funds to pay for payroll, supplies, repair, expansion, virtually anything.

The funds you can get from invoice factoring can make it so you can take on that new, unexpected, business opportunity. Many business owners often find themselves unable to take on new expenses, or layout money for new expansion projects, because they don’t have funding. Many are waiting for existing customers to pay their invoices, and don’t have the funds to accept new business orders. With invoice factoring, that’s not a problem anymore.

How it works

There are three parties involved in an invoice factoring scenario.

  1. The business which issues the invoice
  2. The customer who has to pay it
  3. The financing company, also known as the factor, who offers the advance on the unpaid invoice

After you deliver your product or service to the customer, an invoice is issued. The company sells the invoice to the factor (Delancey Street. In return for the advance, the company gets anywhere from 70-90% of the value of the invoice. After the debtor pays the invoice, the business gets the remainder of the funds, minus a fee which is based on the terms and value of the invoice. In the end, all three parties benefit from invoice factoring.

Invoice Financing is a financial transaction through which businesses fund their cash flow by selling invoices, open receivables, to factoring companies. With invoice financing, you don’t have to wait for customers to pay. A factor provides you with immediate cash so that you’re able to meet payroll obligations, pay bills and run daily operations with ease.

Benefits of Invoice Factoring
1. Provides you with immediate cash.
2. It is based on your customers’ creditworthiness.
3. The transaction is simple.
4. It doesn’t drive you into debt.
5. You don’t have to wait for customers to pay.
Invoice factoring is different from borrowing in that you actually sell your invoices rather than using them as collateral. It enables you to convert invoices into cash without waiting for your customers to pay.
By factoring, you essentially transfer the cost, effort and time needed to collect payments to the factor. The net result is that you get to channel all your efforts into running your business. Also, the amount of cash you receive is based on your customer’s credit history and not your business itself. This makes factoring perfect for businesses that don’t want to get into debt and those that don’t qualify for traditional lending.

Invoice Factoring Process
Invoice factoring is a simple process. A business first enters into an agreement with a factor. The business then creates invoices as normal. However, instead of sending invoices to customers, it sends them to the factoring company.
Once the factoring company has assessed the invoices, it transfers a cash advance to the firm’s account within 24 hrs. The advance is typically 90 percent of the invoice. Once the customers pay, the factoring company subtracts a factoring fee and sends the balance.

Steps You Should Follow in Invoice Factoring.
1. Bill as normal.
2. Send your invoice to factor.
3. Receive cash advance from factor.
4. Your customers remit payments to the factor.
5. Factor sends the remaining balance after charging a small fee.

Invoice Factoring vs Debt
Whenever there is a need for working capital, some businesses turn to banks and other lenders. However, the process can be cumbersome. Getting lines of credit or bank loans involves a lengthy process that can take weeks or even months. Also, business lines of credit or bank loans drive you into debt.
Lenders assess your company’s creditworthiness before they qualify you for a loan. You can’t obtain enough funds to run and grow your business if your business has no credit or a not-so-good credit. Even if you qualify for a loan, there are limits on how much you can borrow. That can hamper the growth of your business.
On the other hand, invoice factoring is quick and easy. Your invoices can be approved within 15 minutes after which you can have the cash advance within 24 hours. The amount you’ll get is hinged on your customer’s credit history. Established factors offer factoring lines ranging from 50,000 to 20, 000,000 dollars. Such a range offers you unlimited room to grow your business.
The relationship between a business and a factoring company is based on a factoring agreement. The agreement contains the terms of engagement between the factoring company and the client. The terms include:
1. Length of service.
2. Advance rate.
3. The volume of commitment.
4. Fee/factoring discount.

The Length of Service
The lengths of factoring contracts vary. Some contracts last for only three months, some go for six months and others cover multiple years. You should always seek clarity on the length of service before you get into any factoring agreement.

Advance Rate
Most factoring companies advance you at least 70 percent of the total invoice amount. The amount of cash sent is based on variables like customer’s creditworthiness, volume and paying trends.

Factoring Volume
Most factoring agreements stipulate the volume of commitment. To get the best terms for your business– low factoring fees and high advance rates – you can commit to factor an agreed volume of invoices.

Factoring Fees
Factoring fees vary based on volume, size of invoice, customer trends, industry and other variables. Some factoring companies demand a flat fee while others charge a factoring fee in addition to charges for their support and administrative services. Be clear on the fees before you enter any factoring agreement.

Types of Invoice Factoring Companies
To enjoy an empowering factoring engagement, you need to find the right partner. There are so many factoring companies out there and finding the right one can be difficult. A factoring company should meet your cash flow needs and offer you other value-adding services.

Generalists vs Specialists
Businesses in several industries use invoice factoring services. While some factoring companies specialize in specific industries others serve multiple industries.
Factoring companies with clients across multiple industries are called factoring generalists. Generalists typically have client portfolios that span several industries. Small businesses make a majority of their clients.
Factoring specialists, on the other hand, focus on a specific industry. Most of the specialist clients are small to mid-size companies.

Recourse vs Non-recourse
Factoring companies fall into these two categories – recourse and non-recourse factoring companies. Before selecting a factoring partner for your business, it is important that you know what differentiates the two.
Most factors are recourse factoring companies. A recourse factoring company has a right to resell your invoice back to you if your clients don’t pay within a specified time frame. The time frame is usually 90 days or more.
Non-recourse factoring companies are not very common. A lot of factoring companies tout themselves as non-recourse. In reality, their contracts list a myriad of reasons why your invoice should be exempt. Truly non-recourse factoring companies take all the credit risks that come with the collection of your invoices. That is why they charge higher fees.

User Rating
5 based on 1 votes
Service Type
Invoice Factoring
Invoice Factoring
Invoice Factoring