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With last month being Small Business Month, there was lots of content out there about the small business community in Canada. I’ve set up alerts for “small business” “small business marketing” and “small business financing” and will periodically post/share articles that are relevant to small business owners in Canada.

One particularly interesting and relevant article was published recently by Sage, a global leader in small business management and accounting software.

They do an annual research study that measures, among other things, confidence in the economy, the government, and the banking industry among business owners in 17 countries around the world.

The most recent report indicated businesses are more confident today than they have been in three years. Of relevance locally was the fact Canadian business owners are more optimistic than their counterparts in other parts of the world with two thirds suggesting the economy is improving.

small business confidence

Despite the optimism, the majority of Canadian businesses believe the banks and the government are slow to respond to the increased business confidence. More than half (55%) of businesses agree that banks aren’t doing enough to make funding available to small businesses, and a similar percentage (50%) believe the government needs to put more pressure on banks to lend.

Due to this perceived lack of support from banks and government, more than half (52%) of businesses agree that they need to look at alternative funding sources. However, while 37% of businesses feel positive towards peer-to-peer lending and crowd-funding, only 2% have already used it. Get the full report here

The merchant cash advance industry, while no statistics are available, is emerging as one of the most popular “alternative” funding sources. Our research indicates there will be more than $250 million in working capital financing provided to almost 10,000 small businesses in Canada in 2014.

A merchant cash advance is unique in the small business financing sector because approval is based on the sales history of the business rather than the personal credit history of the small business owner. To qualify a business must accept debit/credit as payment, they must process multiple transactions daily (retailers), have been in business for at least a year and have at least 12 months remaining on a lease.

These types of qualification make a merchant cash advance ideal for retailers. To learn more check out the FAQ page

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