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.

Payroll

Use the loan to pay your employees.

Liquid

Keep the cash on hand for future expenses.

Equipment

Buy new equipment to grow your business.

Staff

Use the loan to hire new employees.

We Fund Fast

24-48 Hours

Loans up to

$10 Million

Google Rating

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

Trusted

We're frequently interviewed by major media organizations.

Easy Application

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

Service

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

Experts

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

Customized

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

Universal

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

Nationwide

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

Honesty

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

Merchant Cash Advances Explained 
In this economic climate, there’s no shortage of ways for business owners to receive quick funding for their businesses. A convenient way to get access to business funding is through a merchant cash advance (MCA). 

If you’re a merchant and you haven’t received funding from an MCA, you could be missing out on a great business funding opportunity. Not only can your MCA application be approved quickly, merchant cash advance providers offer an easy way for you to repay your merchant cash advance. 

A merchant cash advance is a type of business funding that is based on your daily credit card receipts. MCA providers will offer funding for your business in exchange for a portion of your future credit card receipts. 

Unlike traditional business funding opportunities, you won’t be required to provide your MCA provider with collateral. As long as the provider has access to your future credit card receipts, you could be approved for a merchant cash advance. 

Here are the steps that are required in order to get approved for business funding through a merchant cash advance. 

1. Complete an application. Provide information about your business including your credit card receipts, business history and industry. 

2. Your application gets reviewed. The merchant cash advance provider will review your credit card receipts to determine if you qualify to receive an MCA offer. 

3. Receive your merchant cash advance decision. If you’ve been approved for an MCA, you’ll be required to sign a contract. This contract contains details about your merchant cash advance offer including holdback charges and factor rates. 

4. Get your cash. You could receive your merchant cash advance funding in a day. Your MCA provider will deposit your approved cash advance amount into your business banking account. 

How Holdbacks Affect Your Merchant Cash Advance 
Merchant cash advances have holdback charges that are based on your daily credit card revenue. In many instances, merchant cash advance providers charge up to 20 percent of your daily credit card receipts for holdbacks. 

Let’s explore how holdbacks can affect your merchant cash advance. Your business had $650 in credit card transactions on Thursday. According to your agreement with your MCA provider, the holdback charge for your total daily credit card receipts is 20 percent. Based on this agreement, your holdback charges for Thursday is $130. 

Your MCA provider collects holdbacks automatically. Once a holdback has been collected, it will be applied as a payment to your merchant cash advance. 

Holdbacks make it convenient for you to make payments toward your merchant cash advance agreement. However, holdbacks can decrease your monthly revenue. This might make it challenging for you to pay other expenses. 

Understanding Factor Rates 
When it comes to the convenient features of merchant cash advances, there are costs associated with using this type of business funding. A factor rate is the extra charge that you pay MCA providers in exchange for the funding. 

Here’s what you’ll need to now about factor rates before you agree to a merchant cash advance. Factor rates aren’t the same as interest rates. Interest rates are calculated using percents. Factor rates are calculated using decimals. 

You can expect the factor rate for your MCA to fall between 1.2 and 1.5. If you get approved for a $39,000 cash advance with a 1.3 factor rate, you can expect to pay $50,700 for the advance after it has been repaid. 

Your MCA agreement includes a holdback percentage and a factor rate. Know the terms of your merchant cash advance before you consent to an agreement. 

A merchant cash advance is one way for you to receive business funding. This information can help you decide if an MCA is a viable option for your business.