Merchant Cash Advance

All you need to know about small business funding in Canada.

What is a Merchant Cash Advance?

As a business owner, you have many options available to you when it comes to obtaining funding. You could go to a bank, a credit union, or even a private lender. You could also use your business credit card. However, if you want a solution that is as flexible as your sales, consider a merchant cash advance. With low fees and acceptance based on your business’s sales instead of your credit, it’s a great way to get the capital you need.

Who Qualifies for a Merchant Cash Advance?

Whether you qualify for a merchant advance depends on a few different criteria. Most companies offering these types of financing look at your business and its sales rather than your credit history, but this differs based on the lender. In most cases, lenders look for:

  • A retail-based business instead of one that is home- or ecommerce-based.

  • A minimum amount of credit and debit card sales in a month.

  • A minimum amount of time since the business was established.

  • A business that is headquartered in Canada.

If you can meet these simple criteria, then you can get the cash you need. Lenders tend to offer anywhere from $5,000 to $1,000,000 depending on the size of your company and your ability to repay.

How Borrowers Use the Funds

The great thing about a merchant cash advance is that you can use the money for virtually anything that will improve your business:

  • Have a project that will provide you with an outstanding return on your investment? A merchant advance can help you raise the capital you need to get that project off the ground.

  • Want to remodel your boutique to make it more modern and relevant? You can do that too.

  • You can use the funds you receive to purchase new equipment, stock your inventory, or even help you get through a lull in sales if you run a seasonal business.

How Repayment Works

Unlike traditional financing, you repay a merchant cash advance on your own time. There is no fixed time period during which you must repay the financing in full. When you accept the financing, you agree to allow the lender to withhold a small percentage of your daily sales until you have repaid your merchant advance. What’s more, unlike banks, there is no collateral necessary and having bad credit is not an immediate disqualifier. It’s all about your business and your ability to repay your financing over time.

How to Get a Merchant Advance

If you are interested in obtaining a merchant advance to help finance your business needs, you will need to provide some basic information. You will need to provide your basic business information, your merchant ID number, recent bank statements, a government-issued photo ID, and a void cheque. You will also need a business bank account where your lender can deposit your merchant advance. If you request a large amount of financing, your lender may ask you for additional documentation.

Thinking Capital is Canada’s premiere provider of merchant advances. If you need money for your business for any reason – whether you want to buy new equipment, gain a cash flow injection, or even open another location across town – we can help you get the money you need for your business. Apply today and find out just how simple it really is.