The merchant cash advance program is something that is still a foreign concept to many Canadian business owners. Here, at Synergy Merchant Services, we sometimes forget that. Considering that we’ve spent the better part of a decade introducing it to entrepreneurs all over the country, it’s important to keep in mind that not everyone has heard about it. But, of course, that can be understood.
Each and every day, it’s likely that you’ll see a television commercial promoting one of the big banks. Chances are you’ll also see billboards and ads on the sides of buses heralding banks as well. Not that we particularly disagree with these ads. We all need banks!
And while there are many benefits to having a bank account, of course, it doesn’t mean that the bank can do everything that you need. Working with our clients over the years has really helped to open our eyes as to how difficult it can be for a business owner to borrow money.
Our clients often tell us that even when they’ve established long relationships with their local branches, they are still turned down when applying for loans. It’s important to understand that banks are hesitant to take risks. And providing a loan to a business owner looking to renovate his restaurant, for example, is considered a big risk.
The great thing about a merchant cash advance is that it is not a loan. The risk factor is eliminated by the fact that our clients are not borrowing money. Instead, they have made a sale. Synergy purchases a portion of their future credit and debit sales. And we pay for those sales upfront.
Within five days, a merchant can receive the cash that he or she needs to renovate, advertise or expand. Honestly, our clients may do whatever they like with the money they receive. Of course, the money isn’t free. The mere idea that the money has no charge is one thing that scares some business owners away – assuming they are getting involved in a scam!
Naturally, we must charge a one time fee for the cash advance. This is not an accruing interest rate. The cash advance is paid back over time through a small percentage of those future credit and debit sales that we purchased. So there is also no fixed repayment schedule. This means that there is no such thing as being late.
Our clients often tell us that this is their favourite aspect of the program. They have peace of mind in knowing that their credit scores will never be affected and they will never have collectors knocking on their doors asking for cash. Some advances are paid back with a couple of months. Some take closer to a year. No matter what, the cost of the advance never increases.
Contact one of licensed funding specialists today to get yourself a free, no obligation quote for a merchant cash advance!