Many business owners all thoughout Canada have had the displeasure of walking into a bank in an effort to secure a business loan. The process is a gruelling one that requires an abundance of documents to be submitted and much time to be spent. Often, after weeks of attempting to comply with the demands of the bank, a business owner is informed of the decline of his or her request for that well-needed extra capital.
The majority of banks, especially during the state of the current economic crisis, feel that it is too risky to provide lines of credit and business loans for fear that they will not be repaid. Interestingly, the requirements to secure a loan actually put the person requesting the money at great risk of losing what he or she owned before even stepping into the bank.
This is because one of the most significant requirements of a bank is collateral. As defined by Wikipedia.org, “collateral is a borrower’s pledge of specific property to a lender, to secure repayment of a loan. The collateral serves as a protection for a lender against a borrower’s risk of default.” In other words, if a borrower fails to make timely payments, his or her property may be forfeited.
Imagine the bank owning your home, car or store. It causes great wonder to think about how the banks can feel that they are the ones at risk when it is those who are looking to borrow money have to put so much on the line. Of course, with Synergy’s merchant cash advance program, no collateral is ever necessary. A business owner looking for extra capital never needs to worry about losing what he or she already owns when participating in our program.
Banks often may also request that a lien is put against a borrower’s property. “A lien,” says Wikipedia.org, “is a form of security interest granted over an item of property to secure payment of a debt or performance of some other obligation.”
Liens may includes mortgages, car loans and security interests among other properties. Similar to collateral, placing a lien on one’s property creates a risk of losing said property in the event of a default payment. Again, when receiving a merchant cash advance from Synergy, no liens are necessary.
Our clients are among some of the most stress-free business owners in Canada. By using a merchant cash advance to help grow their businesses, they are keeping competitive in each of their respective industries. Just as important, however, these clients know that there is no risk of losing their homes, cars, stores or other properties. Dealing with the banks, they find, is much more risky business.