Business owners who are interested in growing their businesses often look to their banks in order to secure the extra working capital necessary to fulfill their plans for growth. However, as too many Canadian business owners are aware, successfully securing bank loans isn’t all that easy. That’s why, at Canadian POS Corporation, we happily offer Canadian business owners an excellent alternative!
Our merchant cash advance program offers merchants funding fast. We’re talking about 24 hours fast! What’s truly great about merchant cash advances is that, unlike loans, the money is not borrowed. Merchants are paid for their future credit card and debit card sales in advance. Yes, the money is a payment – not a loan. Therefore, business owners avoid a number of problems that generally come with bank loan applications.
Here are four:
1. Having your bad credit score prevent you from securing business funding. Bank loan applicants require good credit. It’s just that simple. Banks need to ensure that their applicants have histories that prove that they’re able to pay their loans back without complications. Business owners with bad credit, therefore, are generally out of luck when it comes to securing bank loans. Bad credit, however, does not impact one’s ability to get a merchant cash advance.
2. Having to wait waits weeks or months to get your hands on much-needed money. As mentioned earlier, the turnaround times for merchant cash advance applicants are extremely quick. Because the process only requires a review of a merchant’s credit card and debit card sales, there isn’t a long and drawn-out period of time between applying and being approved. We pride ourselves on funding our clients within 24 hours!
3. Not having any collateral. Most often, bank loan applicants require some form of collateral. Usually, it comes in the form of one’s home or other major piece of property. By putting up collateral, an applicant assures his/her bank that if he/she cannot pay back the loan in full by a particular due date, the bank will be able to cease the asset. For business owners with no collateral, a merchant cash advance is the perfect funding option.
4. Having to adhere to a strict payment schedule. One of the most highly heralded aspects of merchant cash advances is that they come with no repayment schedule. Bank loans are required to be paid back in monthly installments. A specific amount is due by a particular date each and every month. If a payment is late, it negatively impacts the borrower’s credit score and potentially causes his/her interest rate to increase.
With a merchant cash advance, payments are made much differently. They are made automatically through the merchant’s credit card and debit card sales. Every time a transaction is processed, a small percentage of that sale goes towards making a payment. If sales are going well, payments are made quicker. If sales are slower, so are the payments. If there are no sales, no payments are made. As a result, there is no such thing as being late with a payment!