Why Go For A Merchant Cash Advance Over A Bank Loan?


Time and time again, Canadian business owners discover that getting approved for a bank loan is an incredibly hard thing to do. For a variety of reasons, banks have made it pretty difficult for entrepreneurs to get the funding they need to take their small and medium-sized businesses to the next level. This is why the merchant cash advance has become such a popular alternative for business funding.

Why is it so hard for business owners to be approved for bank loans?

Clearly, no one knows the answer to that better than a loan officer. However, it is well known that many people are unable to jump through the hoops that banks put in front of them. And by “hoops” we mean having a good credit history, being able to put up collateral and coming prepared with a detailed business plan to ensure the bank that the loan will be repaid.

Why is it so easy for business owners to be approved for merchant cash advances?

Well, let’s start with the hoops. There are none! To be approved for funding, business owners don’t require credit checks or collateral. They’re not even required to divulge what they need the money for (although it’s always advisable to discuss business growth ideas with their funding specialists). Instead, they simply need to submit their monthly statements that show their credit card and debit card transactions.

Based on a merchant’s average monthly sales (as well as a few other factors including the business location and number of years in business), he/she will learn exactly how much money he/she is eligible for. Approval is practically guaranteed. In fact, a free, no obligation quote is generally provided within an hour and funding is often provided within 24 hours!

What is included in the free, no obligation quote?

The quote involves the amount of money a merchant is eligible for and the one-time fee. It’s important to note that a merchant cash advance isn’t free, of course. However, unlike with a bank loan, there is no interest rate. Instead, the one-time fee is charged so that merchants are well aware of the exact cost of accepting the funding. It never accrues on the balance over time and is paid back over time as part of the total cash advance amount.

How is a merchant cash advance paid back?

This is often heralded as the best part! There is no repayment schedule. Payments are made automatically through a small percentage of each credit card and debit card transaction made by the merchant. During slow periods, payments are made less frequently. When sales pick up, so do the payments. A merchant cash advance program works with the ups and downs of each specific business. This is another major benefit that bank loans do not provide.

Have you encountered difficulty attempting to get funding for your business?

If so, call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost today to learn more about how our unique merchant cash advance program can help you. Of course, bank loans are always an option. But, as you may have experienced for yourself, it’s not an option that is quick and easy!

Scroll to Top