16 February

Cash and loan agreement

Small Business Lending in Canada (Infographic)

Interesting stats on small business financing in CanadaMerchant Cash Advance Infographic

The merchant cash advance lending scene in Canada is a blossoming industry. As large Canadian companies like Shopify begin to launch their own lending arms and as small businesses continue to look for funding to grow, it is more important than ever to shop around to find the best deals. Traditional funding models can often fall short: banks in Canada typically require 32 articles of information and still decline loan requests around 78% of the time. Our merchant cash advance system requires only 5 articles and approves 90%. With figures like these, it shows the advantages of avoiding the typical lenders: lenders that since the financial crash are ever unwilling to lend. With small businesses contributing around 30% of Canada’s total GDP, the need for simple, fast finance to grow is out there.

So what other reasons make a merchant cash advance from our company appealing to you? Well one important factor is the amount of money you can borrow. The kinds of businesses that are typically applying for merchant cash advances are young, tech-savvy and find themselves blocked out of traditional funding channels. These businesses tend to need funding to keep up with growth – whether to buy new stock, new equipment or move to a more suitable premises. They may also require further funding as their business grows or slows. Large banks will usually offer around $40,000 with collateral in a five year period. These long repayments and lack of real injection can cause businesses to stagnate. Alternatively, we can offer $400,000 during the same time frame and without the need for collateral. The results speak for themselves.

Another huge draw is the personal method of banking. Dealing with small, technology-driven firms results in better relationships, both on a financial and customer service level. A recent survey found that 73% of Canadians are interested in having strong, personal relationships with service providers, and 82% are more likely to recommend a friendly brand to others. Besides not offering the flexibility and freedom of merchant cash advances, by using a smaller independent company you are dealing with a friendlier, more bespoke funding arm. Utilising technology in this way also ensures that the funding you apply for is the right amount to not only build your business but to repay your loan as fast and efficiently as possible.

The industry continues to grow and grow. The Canadian small business lending index rose to 135.2 from a downwardly revised 132.5 in October 2016, and throughout the year there was a 4% rise in lending. More and more businesses are seeking out contemporary ways of increasing their capital. Merchant advance loans are a great way for these businesses to bypass the banks and find the right level of capital that they need. Taking into account areas like lines of credit, we can beat the typical monthly Canadian rate of 5%. This is particularly good value when compared with some lenders who can adjust rates and charge as much as 10%.

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