Synergy Merchant Services provides merchant cash advances to small and medium-sized business owners throughout Canada. Now, this is a sentence that we are sure you have read in various forms throughout this website. Interestingly though, many entrepreneurs across the country are still not quite sure how our program works.
There are a number of differences between merchant cash advances and bank loans. Then again, there are a number of similarities too. Banks give money, we give money. Banks charge to borrow money, we charge to advance money. That, however, is pretty much where the similarities end.
The differences begin with how we provide money to our clients. Banks, of course, put their customers through a long list of requirements that include collateral, liens, credit checks and detailed business plans. Synergy, on the other hand, qualifies its customers based predominantly on their Visa, MasterCard and Interac receivables.
Naturally, banks charge an interest rate on the money they allow their clients to borrow. As a result, the borrower is continually being charged for the money for the duration of time that he or she carries a balance. Meanwhile, Synergy charges a one time fee. This means that no matter how long it takes for the merchant to pay back the advance, there are no accruing charges on top of the remaining balance.
It does not matter how long it takes for a client to pay back the advance. And here lies the most significant difference between bank loans and merchant cash advances. Banks insist upon a regular payment schedule. Generally, a client must make a minimum payment each and every month.
If payments are not made in a timely manner, the client may be charged late fees or other penalties. This may also include the increase of the customer’s interest rate, only making it harder to pay the loan off over time. With Synergy’s merchant cash advance program, there is no such thing as being late!
The best part about our program is that there is no fixed repayment schedule. Payments are made through an automated process. Each time the merchant accepts a Visa, MasterCard or Interac transaction, a small percentage of that sale is automatically put towards the repayment of the cash advance.
Obviously, there are no late fees. There is no accruing interest rate. There are no penalties. So while there may be some similarities between loans and advances, the differences are vast. So much so, that it would definitely be worth your while to get a free quote from one of our funding specialists to find out how much money you can get for your business. See the difference for yourself!