Merchant Cash Advances in Canada and the USA

Merchant Cash Advances MCAs in Canada the USA. When you receive a merchant cash advance from SMB Funding®, We’ll provide you with a lump sum of capital in exchange for a percentage of your business’s future sales.

What is a Merchant Cash Advance?

A Merchant Cash Advance (MCA) in Canada and USA, offered by SMB Funding®, is a financing option where your business can receive a lump sum of capital upfront in exchange for a percentage of your future sales. Here’s how it works:

Lump Sum Capital: When you apply for an MCA, SMB Funding® provides your business with a lump sum of working capital. This capital can be used for various business needs, such as expansion, inventory purchase, marketing, or covering any sort of business expenses.

Percentage of Future Sales: In return for the upfront capital, your business agrees to repay SMB Funding® by giving them a percentage of your daily or weekly credit card sales or overall sales. This percentage is typically a fixed portion of your sales revenue for a period of time agreed by both parties.

No Fixed Term: Unlike traditional loans, MCAs do not come with a fixed term. Instead, the repayment amount is determined as a percentage of your sales/future sales until a specified total amount, including the original advance and fees, has been repaid.

Funding Plan: SMB Funding’s Funding Advisors will work with your business to create a funding plan tailored to your specific needs and financial situation. This plan helps ensure that your business receives the right amount of funding without straining your cash flow.

Also, you can maximize the capital receive from SMB Funding and make the most of the money to earn a good amount of profit for your business.

Qualification Criteria: Business owners in Canada and USA who have been averaging a minimum monthly sales volume, typically around $10,000 per month over the last six months, are often eligible for an MCA typically qualify for an MCA equal to 70%-120% in funding. The amount of funding can range from as low as $5,000 up to $500,000.

Repayment Flexibility: SMB Funding® offers both fixed and flexible repayment option, allowing you to choose the option that best suits your business’s cash flow. Our Funding advisor will closely work with you to create the best funding plan for your business which will help jumpstart your business growth without maxing out your cash flow. SMB Funding offers both Daily and weekly payback option so that you can have the option you want to choose.

It’s important to note that MCAs are a form of financing with unique terms. While they offer quick access to capital and flexible repayment, they may come with higher fees or costs compared to traditional loans. Business owners should carefully consider the terms and costs associated with MCAs before deciding if this financing option aligns with their business needs and financial situation

Merchant cash advance rates

Instead of a traditional interest rate, MCAs use factor rates, which are simple decimal figures that show how much “extra” you will owe on the original amount of the loan. Your factor rate is determined based on your risk assessment. Most factor rates fall between 1.1 and 1.5.

Who Should Apply for a Merchant Cash Advance?

Merchant cash advances are ideal for:

Businesses seeking fast funding—MCAs can be deposited in as little as 24 hours
Businesses that process a lot of debit and credit card transactions
B2C businesses that need smaller amounts of funding
Businesses with lower credit scores
Business owners that do not have collateral, such as real estate and other assets

Merchant cash advances can benefit restaurants, dental practices, attorneys, dry cleaners, gas stations, pharmacies, and more. No matter what industry you operate in, our expert Funding Advisors will work closely with you to select the best funding option to help you achieve your business’s goals without sacrificing cash flow.

Why merchant cash advances MCAs is popular in Canada

Merchant Cash Advances (MCA) have gained popularity as a financing option for small and medium-sized businesses in Canada in 2023.
MCA providers in Canada offer fast and convenient business loans, with approvals and funding taking place within 24 hours.
These cash advances are an alternative to traditional bank loans, making them accessible to businesses with limited credit history or less-than-perfect credit scores.
MCA providers evaluate the business’s future sales and revenue to determine the loan amount, making it a flexible financing option.
The application process for MCA loans in Canada is streamlined, allowing business owners to apply online and submit the required documentation easily.
Merchant Cash Advance loans in Canada do not require collateral, reducing the risk for business owners.
With MCA loans, businesses receive a lump sum of cash, which they repay through a percentage of their daily credit and debit card sales.
This repayment structure ensures that the loan payment aligns with the business’s revenue, making it more manageable.
MCA loans in Canada offer businesses the opportunity to obtain quick working capital for various purposes, such as inventory purchases, equipment upgrades, or marketing campaigns.
Since MCA loans are based on future sales, the loan amount is typically tied to the business’s average monthly revenue.
Canadian businesses that experience seasonal fluctuations can benefit from MCA loans, as the repayment amount adjusts according to sales volume.
MCA providers in Canada often have lenient eligibility criteria, making it easier for businesses to qualify for funding.
Business owners can use the funds from an MCA loan in Canada without restrictions, providing them with the flexibility to allocate the money where it is most needed.
MCA loans can be particularly helpful for businesses that require immediate funds for unexpected expenses or cash flow gaps.
Some MCA providers in Canada offer additional perks, such as personalized customer support and financial advice tailored to small and medium-sized businesses.

How to Get a Merchant Cash Advance in Canada

Grow your business, Just take simple step

Apply

Gather 3 months of bank statements and other records. For faster approval, grant us secure access to your bank account’s transactional data.

Choose Funding

A Funding Advisor will reach out to you within 1 hour (during regular business hours) to complete your application & discuss your funding options.

Get Funded

Once you and your Funding Advisor determine what funding option works for your business, your funds can be approved and deposited within 24 hours.

Set Repayment

Payments will be automatically deducted from your business’s daily or weekly debit and credit card sales. Payment amounts will be based on your sales.

How to Use a Merchant Cash Advance

There are no restrictions on how a merchant cash advance can be used. MCAs are typically best used to support growth strategies that will help increase your revenue, such as: