skip to Main Content

In previous posts I wrote about the qualification criteria and the application process of a merchant cash advance compared to a traditional small business loan. To qualify for a merchant advance all a business really needs is proof of 12 months sales history and have 12 months remaining on a lease. The application process is also very simple and quick. A one page application form is all that is required to get the process moving.

We require banks statements, credit/debit card processor statements, a copy of a lease, business license and photo id and a couple references. No credit check and no lengthy review process. Funding is usually provided in 2 days compared to a few months at the bank.

In addition to being quick and simple, the approval rate of a merchant cash advance is significantly higher than a traditional small business loan.

Because Merchant Cash Advance financing is based on the sales history of the business rather than the personal credit history of the business owner the approval rates are very high. Banks typically turn down 8 of 10 applications for small business loans whereas almost 9 of 10 applications for a merchant advance are approved.
In the past few years, specific retail categories like foodservice, clothing, or grocery have found it increasingly difficult to get financing from traditional sources – they are “profiled” by industry. A merchant advance is based on sales history – regardless of industry.

The merchant advance industry is gaining widespread popularity among the small business community in Canada as an alternative to a traditional bank loan. For those of you unfamiliar with the service, a merchant advance provides a lump sum amount that is repaid on a daily basis using a small percentage of sales. Daily payments ebb and flow with sales trends of the business and repayment typically takes 7-9 months. A merchant advance is intended for short term opportunities or emergencies (inventory, renovations, taxes) and is not intended to be used as an alternative to long term debt.

Compared to a bank loan, a merchant advance is expensive. However, if you believe time is money, then a merchant advance can be a very practical option for your business.

This Post Has 22 Comments
  1. Yes, Merchant Cash Advance is becoming a new trend for small business. Now a days business owners prefers Merchant Cash Advance above personal loans and bank loans !

  2. I appreciate, cause I found just what I was looking for. You have ended my 4 day long hunt! God Bless you man. Have a great day. Bye

  3. I see you don’t monetize your site, i’v got idea how to earn some additional
    money using one simple method, just search in g00gle
    for; ruthiezx’s method

  4. Wow that was strange. I just wrote an extremely long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Anyways, just wanted to say great blog!

  5. Good post however I was wondering if you could write a litte more on this subject? I’d be very thankful if you could elaborate a little bit further. Many thanks!

  6. Good day I am so thrilled I found your webpage, I really found you by accident, while I was browsing on Yahoo for something else, Regardless I am here now and would just like to say cheers for a incredible post and a all round thrilling blog (I also love the theme/design), I don’t have time to read it all at the minute but I have bookmarked it and also added your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the excellent work.

  7. Another thing I’ve really noticed is always that for many people, poor credit is the consequence of circumstances beyond their control. For example they may have already been saddled having an illness and as a consequence they have substantial bills for collections. It can be due to a job loss or even the inability to go to work. Sometimes breakup can send the budget in a downward direction. Thanks sharing your notions on this weblog.

  8. certainly like your web-site but you have to test the spelling on quite a few of your posts. Several of them are rife with spelling problems and I to find it very bothersome to tell the reality on the other hand I’ll definitely come again again.

  9. I think this is among the so much significant info for me. And i’m satisfied studying your article. But want to statement on some general things, The website taste is perfect, the articles is truly great : D. Excellent job, cheers

  10. Thanks for the sensible critique. Me and my neighbor were just preparing to do some research about this. We got a grab a book from our local library but I think I learned more from this post. I’m very glad to see such great information being shared freely out there.

  11. It’s a pity you don’t have a donate button! I’d definitely donate to this outstanding blog! I suppose for now i’ll settle for bookmarking and adding your RSS feed to my Google account. I look forward to fresh updates and will talk about this site with my Facebook group. Talk soon!

  12. Thank you a lot for sharing this with all of us you actually understand what you’re talking about! Bookmarked. Kindly also visit my web site =). We will have a hyperlink trade arrangement among us!

  13. Hello! I’ve been following your blog for a while now and finally got the bravery to go ahead and give you a shout out from Dallas Texas! Just wanted to mention keep up the great work!

  14. I got this web site from my pal who told me about this web page and now this time I am browsing this
    website and reading very informative articles or reviews at this

Leave a Reply

Your email address will not be published.

Back To Top