2017 just may be the year you take your business to the next level. Chances are that you have a number of plans that you’d like to put into action. Opening a new location, renovating your current store, launching a new advertising campaign, hiring new staff and buying new inventory may all be on your list of things to do in the new year. The thing is that you’ll definitely need some business financing to set your plans in motion.
What is your best option for securing extra working capital? Most entrepreneurs automatically think that going to their local banks to secure business loans are the only real options available. Unfortunately, banks are known for not always coming through. With so many requirements – including credit checks and collateral – bank loans are hard to come by these days.
“Banks have been stingy with lending to small businesses since the beginning of the financial crisis that began in 2007,” reads Business.com, “While the economy has improved since then, credit availability has not eased up at all. Given a tight credit market, small businesses have to take advantage of whatever resources they can find. Merchant cash advances are a novel workaround to unavailable bank lending.”
What makes merchant cash advances ideal alternatives to bank loans? Well, firstly, let’s clarify the fact that credit checks and collateral aren’t necessary. Merchant cash advances aren’t loans so recipients of the money aren’t borrowing anything. Instead, they are receiving payments for future credit card and debit card sales. This alleviates the pressure of having to adhere to specific repayment schedules and accruing interest charges.
Instead, a one-time fee is charged for accepting the advance and it is paid back through a small percentage of future credit card and debit card sales. That way, no payment is ever unaffordable. Payments are only made when sales are made. And because there is no repayment schedule, there is no such thing as being late with a payment. This ensures that a merchant’s credit history is never negatively impacted.
“Unlike with a bank loan, there is no fixed monthly payment, no interest rate or payoff date,” explains Business.com, “There is no collateral requirement. In the event the merchant\’s business fails and full restitution for the advance not made, the owner\’s assets are not at risk, as they would be with a bank loan. In fact, if a merchant\’s business fails and the cash advance is not fully repaid, there is no legal liability.”
How can Canadian POS Corporation help you make 2017 your most successful year of operations yet? We offer Canadian small business owners the opportunity to get merchant cash advances in as little as 24 hours! As Canadian business owners ourselves, we understand that when an opportunity or unexpected emergency presents itself, timing is everything. That’s why we offer an easy application process with minimal paperwork, fast decisions and a quick deposit of funds in your account.