Why A Merchant Cash Advance Tops A Business Loan

If you’re a Canadian small business owner, you most likely have some experience applying for a business loan from a bank. Unfortunately, it is in all likelihood that you also have experience having your business loan application denied. For many entrepreneurs across Canada, securing business funding is a difficult undertaking. This is because bank loan officers follow strict lists of criteria that applicants must satisfy in order to be approved for funding.

Is your credit score strong? Do you have any collateral? Have you devised a comprehensive business plan? If you are unable to answer “yes” to these questions, you’re already in a tough position. This is why a merchant cash advance makes such an excellent business funding alternative. Let’s discuss why a merchant cash advance tops a business loan.

You can be approved within 24 hours.

The process of securing a business loan from a bank is often a long and arduous one. In many cases, it can take weeks or even months to get approved. As mentioned, many business owners go through the long wait only to discover that they’re not approved. A merchant cash advance, on the other hand, is a business funding option that offers a quick injection of cash into a business. We’re talking about getting approved within 24 hours!

“The biggest benefit of an MCA is quickly getting the money in hand that you need for your business,” writes Julia Rittenberg and Rob Watts on Forbes.com, “If you have a project or an improvement that you want to make in your small business and need money to make it happen, a merchant cash advance can be a way to acquire the money needed to do so.”

You don’t need a strong credit score.

A merchant cash advance is a payment for future credit card and debit card sales. It is not a loan. As a result, you don’t need a strong credit score to secure it. As Jamie Johnson of Business News Daily explains, “you will need to be able to show at least six months of credit card transactions. A history of good sales can make it easier for small business owners with bad credit to qualify.”

You don’t need any collateral.

Bank loan officers need to ensure that their establishments will not lose out on the whole business loan deal. If a borrower cannot repay the loan, he/she still has to be on the hook. This is where collateral comes in. It usually takes the form of a major property such as a house or car. It may even be a piece of business equipment. In the event of a default on a loan, a bank can take over ownership of collateral.

With a merchant cash advance application, collateral is unnecessary. “Unlike a loan, you don’t need to have collateral to back up the loan,” affirms Rittenberg and Watts.

Apply for a merchant cash advance today!

As Canadian business owners, we understand that when an opportunity or unexpected emergency presents itself, timing is everything. That’s why at Canadian POS, we are happy to offer you the funds your business needs in less than 24 hours! Contact us to receive detailed financing options including how much financing you qualify for and the cost associated in two easy steps with no commitment.

Please don’t hesitate to call us at 1-877-748-2884 for more information about our Merchant Cash Advance Program.