The holidays are fast approaching! Here’s hoping that you’re currently enjoying an especially lucrative holiday shopping season. As we highlighted in our last blog, business owners all across Canada are certainly hoping to keep sales high well into the new year. And there are many different strategies that one can employ in order to keep customers coming back.
Of course, being able to secure extra working capital in order to afford the investments into those strategies is highly important. This is where Synergy Merchants’ unique merchant cash advance program comes into play. It enables Canadian business owners to receive funding without the worrying about credit checks, collateral, repayment schedules or accruing interest rates.
Instead of paying interest, clients of Synergy Merchants pay a one-time fee.
There is a big difference between the two types of charges. One-time fees are exactly what they sound like. They represent the exact cost of taking an advance which is not unlike any charge for any item that can be purchased. By knowing this fee upfront, our clients can rest easy knowing that no matter how long it takes them to repay their advances, they will not have any additional charges added to the amounts they owe.
Instead of paying a one-time fee, borrowers of business loans pay interest.
How do interest rates work? The simplest way to explain it is to say that interest is a percentage of the amount that you owe and is regularly charged until your loan has been paid in full. The amount of interest you are charged depends on your interest rate. And the interest rate you are given depends on a number of factors about your business. Here’s the bottom line – it’s practically impossible to tell exactly how much interest you’ll pay in full for your loan!
That’s because the total amount of interest you pay is also based on a number of factors. Your interest rate, the amount of your loan and how long it takes you to pay back are all taken into consideration. The quicker you pay your loan off, the less interest you pay. The longer it takes you pay to back, the more interest you pay. The only time you can determine the total amount of interest you’ll accrue on a loan is when it has been paid off in full.
What else is important to know about how interest works?
Your interest rate isn’t necessarily fixed. If your payments come in late, they could impact your interest rate. Most lenders not only charge late fees and other penalties for late payments, but they also tend to increase interest rates as a form of punishment. This too will impact how long it takes to repay a loan and the total amount of interest paid by the time the loan has been paid off.
Is there any way to avoid interest when borrowing money?
No. This is why, at Synergy Merchants, we don’t recommend that Canadian business owners borrow money. We encourage them to sell their future credit card and debit card sales at a discounted rate instead. Because cash advances are purchases, the money is not borrowed. Therefore, there is no interest rate.
For more information about how our unique merchant cash advance program can help your brand enjoy the gift of avoiding interest, please don’t hesitate to call Synergy Merchants at 1-877-718-2026 or email us at firstname.lastname@example.org.