what does it mean to co-fund merchant cash advance

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

1

Cover Expenses

Pay for any unexpected expenses that arise using our business loans.

2

Invest in your business

Use the business loan to grow your business however you wish.

3

Liquid

Keep the cash on hand for future expenses.

4

Payroll

Use the business loan to pay your employees.

5

Equipment

Buy new equipment to grow your business.

6

Staff

Use the business loan to hire new employees.

We Fund Fast

24-48Hrs

Loans up to

$ 10 Million

Google Rating

5 Stars

PARTNERS FIRST.
LENDERS SECOND.

Hear from people we've helped

Delancey Street makes lending easy. They took a chance on me when no one else would.

Leo kovacz

Founding Partner (Zooomr Car Leasing)
Delancey Street funded our e-commerce shop and really gave us the chance to grow our business significantly.
Delancey Street makes lending easy. They took a chance on me when no one else would and helped my...

Steven Goldman

Founding Partner (Goldman & Associates
Chicago Lawyer)

Delancey Street Can Help
with Small Business Loans

We're committed to building relationships and helping people all over the USA get access to the RIGHT loan for them. Regardless of your credit, or the riskiness of your industry.

Trusted

We're frequently interviewed by major media organizations.

Easy Application

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.

Our team is always available, and ready to help

Our team of industry experts is ready to help with all of your business needs. Whether you’re looking for a reliable hard money lender, looking to go public via a reverse merger, or need private capital for a venture – we can help.

Industry Experts

Our team consists of extremely qualified industry experts

Quick Service

We work diligently, and quickly, to help you

We’re here to answer your
questions. Contact us anytime:

Minimum Qualifications Requirements

Delancey Street’s team consists of former business owners, and entrepreneurs. We understand your business has unique needs, and not every project is going to be easy and be ideal. These are general guidelines which should be interpreted as a suggestion, rather than mandatory.

At the end of the day, we look at you – just as much as the quality of the deal and the qualifications.

  • Risk Free. No Application Fees.
  • Decisions Within 48 Hours.

Business Loan Guidelines

Speed We close within 24-48 hours
Paperwork Not much
Qualification 3 months in business minimum. Credit isn't a huge issue.
Maximum Loan Amount $5 Million
Loan Terms 6-24 Months

It’s Simple

  • 1 Tell us your financial request
  • 2 We consult & provide terms
  • 3 We finalize the transaction

Get funding today

  • Apply today and we'll tell you what you qualify for
  • No obligation and no effect on your credit score
Get pre-qualified today

what does it mean to co-fund merchant cash advance

Facts to know you need to know about Merchant Cash Advance
Is Merchant Cash Advance same as ordinary loan?

Merchant Cash Advance, MCA, is different from a loan because the merchant receives advance cash based on the amount the company makes, but not according to the credit score. The money requested takes around 24 hours to reflect in the merchant’s account. A loan, on the other hand, demands the owner pledge some assets against the loan for security purposes. Companies that provide Merchant Cash Advance services like Delancey Street evaluate weight credit and risk assessment in a different way than other lenders and banks do.

The service providers assess the daily performance of the borrower to ascertain if he or she is capable of paying back the advance within the given period. Although the borrower receives the money quickly, the service attracts higher rates than ordinary loan lenders. It’s advisable to make a credible decision before requesting the advanced cash and see if it’s valuable as far as the rates and the payment period are concerned.

Advantages and disadvantages

The advantage of the Merchant Cash Advance is that it’s reliable to businesses that require cash without passing through stringent processes involved in other lenders. In ordinary loans, one must visit the provider in person, fill many forms manually, and look for guarantors as well as other time-wasting procedures hence making the MCA stand out as the best. Many business owners opt to visit companies like Delancey Street because they find their services reliable despite the high rates. Most borrowers with bad credit depend on this process because the lenders are only interested in daily cash flow of the business but not the credit score.

However, the downside of the process is that the service does not strengthen the borrower’s credit profile. Additionally, the Merchant Cash Advance lender does not update the borrower’s payment history to business credit bureaus that update the credit profiles of individuals. The other problem is that the borrower suffers because of the daily cash used to repay the advance and especially if the business is not doing well. Again, the merchant cannot access more money unless he or she clears the first transaction.

The lenders, like United Capital and Fora Financial help the business startups because the traditional loan lenders require a detailed report covering the history of the borrower’s business turn them down. They also provide the borrower with an option to decide the best payment method that fits them including a simple process, fast cash, and flexible repayment plans. For the established businesses that are financially stable, the lenders advise them on the alternative services if they need one like credit cards that help in covering other expenses.

Additionally, they get advice on term loans lenders that provide money payable after an agreed period. The APR, Annual Percentage Rates on term loans are lower than the ones provided by Merchant Cash Advance service providers. However, it takes longer for these loans to mature hence not reliable for the business owners.

What are the charges expected on taking advanced cash?

The best thing about the Merchant Cash Advance services is that they don’t have the APR, Annual Percentage Rate. The borrower pays a factor rate that depends on the lender although the factors range from 1.05 to 1.4 in different service providers. Before applying for a Merchant Cash Advance, it’s worth considering if the project that one intends to fund is projected to earn more money than the payback amount.

Additionally, one should consider the payback period before choosing a Merchant Cash Advance over other cheaper options. The truth of the matter is that long-term financing is more expensive than short-term financing as far as the payment period is concerned. The valuable uses of borrowing such money include bulk inventory order, purchasing of new equipment, and marketing campaigns. In these types of investments, it’s easier to pay the borrower with the profit projected to receive as a result of the investment.

The borrower also has the privileged to make low payments during the days that the business makes low returns. The highest number of borrowers covers the ones that intend to cover up ordinary business expenses incurred during the low season. However, such a decision is wise only in the scenario that the business uses its funds to stabilize revenue or increase its funds. It might be a bad business idea to take Merchant Cash Advance to overcome an unexpected or temporary cash flow.

Conclusion

Although the cash advance does not accumulate in case of late payment like the traditional loans, one must be very cautious because it’s not the solution to the long-term financial crisis. The financial crisis might get worse if the lender deducts funds from the daily receipts that will eventually hurt the borrower’s cash flow. The application process of these services demands a high level of transparency and discipline because it mostly takes place online and the borrower fills the application form alone. Besides, the services are accessible through the Mobile Apps making them simpler, faster, and reliable than the traditional loan processes.

Do you need a small business loan?

Apply now