All business owners need money to grow their businesses. And while most of them are successful in selling their products and services in order to turn profits, they are not necessarily generating the amounts of income needed to reinvest into their companies. Commitments such as renovations, new advertising campaigns, buying new inventory, making repairs and buying replacement equipment cost significant amounts of money.
But how does the average small business owner attain such funding? Throughout history, Canadian business owners have gone to their local banks in order to secure business loans. History has shown, however, that getting your hands on such much-needed funding isn’t so easy. Banks tend to put entrepreneurs through long lists of requirements that can often be hard to meet. As a result, many business owners are unsuccessful in securing additional funding.
Why do so many business owners get turned down for loans? Well, there are a number of reasons. And they may vary depending on the type of business owner you are. However, most find that poor credit histories are culprits in their denials for loans. If you’ve ever had a late payment on a credit card, you’ll know that your credit score has taken a hit. Banks need to ensure themselves that their borrowers are trustworthy enough to pay back the money.
Many business owners also lack the collateral that banks require in order to approve them for loans. In many cases, one’s home is requested as a form of collateral. The banks basically want to cover their backs in the event that borrowers default on their repayments. This means, however, that one could lose his/her home if there is any problem with paying back the money that was borrowed.
Is there an alternative to bank loans for business owners in need of money? There sure is! The merchant cash advance is an ideal way for small to medium-sized business owners to get their hands on additional funding – and fast! At Canadian POS Corporation, we offer a merchant cash advance program that funds businesses within 24 hours! The application process is easy, requires minimal paperwork and doesn’t require any credit checks or collateral.
How does the merchant cash advance program work? One of our funding specialists reviews a merchant’s recent credit card and debit card sales history in order to determine how much money can be advanced. Based on a merchant’s average monthly sales, our funding specialist creates a free, no obligation quote that includes the amount of money that can be advanced and the one-time fee associated with taking the money.
If the advance is accepted, it is paid back through a small percentage of the merchant’s future credit card and debit card sales. This part of the program is often heralded as its best part. You see, there is no monthly minimum payment required and there is no accruing interest rate. Instead, payments are made automatically when sales are processed. That way, no payment is ever made before the merchant is paid first!
And, with no timeline to pay the advance back, there is no such thing as being late with a payment. As a result, one’s credit history is not affected. At Canadian POS Corporation, we’re happy to report that our merchant cash advance program has successfully helped Canadian business owners to secure additional funding for their companies when their banks were no help to them!
For more information about our merchant cash advance program or to get a free, no obligation quote, please don’t hesitate to call Canadian POS Corporation at 1-877-748-2884. You may also email us at info@localhost.