As Canada’s merchant funding company, Synergy Merchant Services is known for supplying Canadian owners of small and medium-sized businesses with extra working capital. It’s that much needed money that these business owners require to help grow and expand their businesses.
Without this extra money, developing one’s company to greater levels of profit is a next-to-impossible task. This task, is one that is becoming increasingly harder to achieve as banks tighten their lending policies in the post-recession era. Getting a loan to help an entrepreneur grow his or her business is not as easy at it once was.
Of course, we have always championed that the merchant cash advance is the perfect source of small business funding in Canada. There are a number of benefits for business owners to consider. You don’t just have to take our word for it. An article on Loan.com lists four benefits to merchant cash advances that we would like to share with you.
The website’s slogan indicates that it is a source for “the truth about lending”. So sensibly, Loan.com lists that the first benefit of a merchant cash advance is that “it is not a loan”. It notes that unlike a loan, an advance commands no interest rate, but instead charges a fee. As they write, “for many small businesses, a merchant cash advance is worth the price because other forms of funding are difficult to obtain.”
The second merchant cash advance benefit according to Loan.com is that “credit history is less important.” Clarifying that a merchant cash advance is specifically based on a merchant’s previous credit card sales, money is both provided and collected based on a merchant’s receivables. One’s credit history need not be impacted by taking a merchant cash advance.
Benefit number three, according to Loan.com is that there is “less security required”. Says the site: “Lenders speak of the Five ‘C’s’ they want potential borrowers to have: capacity to repay, good character (or reputation), good loan condition, capital in the business and collateral.”
“Often, for the new borrower or small business borrower, more collateral or security is required to offset the risk to the lender. With a merchant cash advance, your credit card receivables are the security the factoring company needs.”
Finally, the fourth benefit is that there is “less risk for you”. The website affirms that the merchant cash advance company places itself at risk, not the business owner. Traditional loans require the type of security that could mean the loss of personal assets and property if the loan cannot be repaid. Again, this will negatively impact a merchant’s credit rating. Perhaps, it’s time you treat your business to the benefits of a merchant cash advance!