Even as the merchant cash advance industry continues to grow in Canada, it is still a concept that is relatively foreign to the majority of Canadian business owners. So, with the Major League Baseball season in full swing, we figured that the great sport would help to make the perfect analogy for what it is we do here at Synergy Merchant Services. Of course, we hope to be able to hit it out of the park with this explanation.
As baseball fans already know, there are a total of four bases on a baseball diamond. Obviously, there is first, second and third base, and finally home plate. To simplify the way in which a merchant cash advance works, one could look at the process as the touching of four bases. Perhaps then, you may call our program a “home run” as we are confident that our program supplies owners with the quickest and easiest way to get money for their businesses.
So how does it work exactly? Well, let’s visit first base. There is, naturally, a qualification process. In order for a Canadian merchant to qualify for a merchant cash advance, the business must be in existence for at least one year.
We also look to see if the merchant meets our minimum monthly requirement of $5,000 on average of Visa, MasterCard and Interac sales. Once a business owner is qualified, we can then move on to second base.
At second, our licensed funding specialists provide a free review of a merchant’s monthly debit and credit sales summaries to help determine how much money can be offered. This is why we look to have a business have at least one year under its belt so that such statements from the previous year may be supplied.
Once these statements are reviewed, our funding specialists provide a quote that includes exactly how much money the merchant is approved for, what it will cost and exactly what percentage of their future credit and debit sales will be used to repay the cash advance. All of this information is provided so that the merchant receives a clear idea as to how the program works before they agree to anything.
Unlike with banks, there is no collateral required nor is there a fixed repayment schedule. That brings us to third base. At third, a merchant receives the cash advance. This process takes approximately five business days. The quickness in which we are able to supply the funds is another reason why we believe that our program gives business owners the quickest and easiest method of attaining extra working capital in Canada.
Of course, we may now head home. Once we have rounded the bases and provided our clients with their cash advances, the final step in the process takes effect. As we mentioned before, the best part about our program is that there is no fixed repayment schedule. The cash advance is repaid through a simple automated process that requires no effort on the part of the merchant.
No cheque needs to be cut. No balance needs to be transferred. With each daily batch out, a small percentage of the credit and debit transactions made comes back to Synergy as a payment. It does not matter how long it takes for the money to be repaid. There is never a late fee as there is no such thing as being late. We only get paid when the merchant makes a sale. If there are no sales, there are no payments. Now, how’s that for a “home run” idea?