We like to be asked questions. If it's one thing we love here at Synergy…
Many of our clients have admitted that they did, at one time, trust their banks to support their businesses if and when the time called for it. Business owners all across Canada most often reply that they can simply “go to the bank for money” if it is needed for their businesses. However, following the global-wide recession, more and more business owners are finding that their banks are not so dependable after all.
It’s no secret that securing a business loan is not the easiest task in the world for entrepreneurs. Having to put collateral on the line, going through a credit check and offering up a detailed business plan are all pieces of the puzzle that must be put in place in order to simply get the ball rolling. The risk is greater on the side of the borrower, as the lender does everything in its power to ensure that it does not lose on the deal.
Even still, banks are growingly hesitant to lend money to businesses. This is especially true for small businesses which are often heraled as the backbone of the national economy. Today, the QMI Agency reports that a survey conducted by the Confederation of Independent Business found that Canada’s largest banks are failing to serve the needs of small businesses in the country.
According to the report, the “Banking On Better Service” survey polled 12,124 Canadian business owners to assess “the banks on financing, fees and services across three categories of business, micro, small and mid-sized.”
Said CFIB President, Catherine Swift: “When you consider that micro size businesses alone account for over three-quarters of the businesses in Canada, you would think that it would be in a bank’s best interest to serve them well, especially considering their role in job creation and economic growth.”
Of all banks, CIBC was revealed to be the worst when it came to servicing micro and small businesses. Ironically, however, it placed first in servicing medium-sized companies with between 50 and 499 employees. Given an overall rating of 0.9, CIBC lost out to credit unions and Scotiabank which scored 7.5 and 5.5 respectively.
In addition, the survey revealed that the nation’s biggest banks have been losing market share in the small business sector in favour of credit unions. RBC, National Bank and CIBC have all seen their shares of the small business market drop significantly over the past two decades, while Scotiabank and credit unions have doubled their share.
And while we have always believed this, Synergy Merchant Services is confident that there couldn’t be a better time than the present for small to medium-sized business owners across Canada to look into the merchant cash advance as an option for extra working capital.
With far less hassle to experience during the application process and much less risk placed on the business owner, the merchant cash advance is a funding option that will only continue to get more popular over the next several years.