From our standpoint, here at Synergy Merchants, Canadian business owners are among the world’s most innovative entrepreneurs. With so many new business types popping up across the country, it’s no wonder our nation’s economy continues to thrive. Nevertheless, many business owners in our country are finding it difficult to take the companies to the next level. The problem, we regularly hear, is that they are having too much trouble securing loans from their banks.
At Synergy Merchants, we’re proud of the fact that our unique merchant cash advance program has helped numerous Canadian business owners grow their businesses. If you ask us, a bank loan may not be your best funding option. Here are three reasons why:
1. If you’re lucky enough to get approved for a loan, the process is a very long one.
Time is of the essence. Most often, our clients contact us because of the importance of getting their hands on extra working capital quickly. Seasonal inventory is one of the most popular reasons that business need to get money fast. Deals with their suppliers are often such that certain types of inventory are cheaper at particular times of the year. For example, winter clothes can be purchased at significantly discounted prices in the summer.
The thing is that there are usually small windows of opportunity to grab such inventory at low prices. Therefore, getting access to funding quickly is important. Without it, many opportunities to significantly increase profits are lost. With our merchant cash advance program, clients can receive funding within 24 hours. With traditional bank loans, it often takes weeks to receive the money – if you’re approved for it.
2. Bank loan applications require a ton of paperwork.
The list of Canadian business owners who have been turned down by their banks for business loans continues to get longer every day. And that’s because there is a long list of criteria for entrepreneurs to answer to when applying for traditional bank loans. Credit checks, collateral and detailed business plans are among the most popular requirements for loan officers.
Without them, business owners are often unable to secure funding from their banks. Synergy Merchants’ merchant cash advance program, however, requires no credit checks, collateral or detailed business plans. Because we purchase future credit card and debit card sales, the money we provide isn’t a loan. It’s not borrowed. It belongs to the recipient to do with what he/she pleases. To approve clients, we only need to review their credit card and debit card sales history.
3. The risk of increased interest rates, late fees and worsened credit scores.
When you borrow money from a bank, you are required to make monthly minimum payments in order to pay it back. You must adhere to a strict schedule that involves a specific day of the month when a specific dollar amount must be paid in order to keep your account in good standing. Making late payments can both impact your credit score and increase your interest rates, making it harder to pay off the loan in full.
With our merchant cash advance program, there is no repayment schedule and there isn’t a minimum payment requirement. Payments are made automatically through a small percentage of each future credit card and debit card sale.