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Why Should You Opt For A Cash Advance Over A Bank Loan?

At Synergy Merchants, we have many years of experience working with business owners from all over Canada. Hardworking, determined, talented and even “visionaries” are just a few of the words that come to mind when thinking about the things that they have in common. Naturally, we’re also well aware that many business owners have difficulties securing necessary funding from banks in order to grow their businesses.

This is a commonality that we think is unfair. As a result, Synergy Merchants offers a merchant cash advance program that makes securing business funding easy. We simply take a look at a merchant’s credit card and debit card sales in order to determine how much of a merchant cash advance he/she is eligible for. Unlike with bank loans, there are no credit checks or requests for collateral.

How do banks make securing funding difficult? As most business owners know, banks have long lists of criteria that are used to make their funding decisions. As the Canadian Bankers Association explains, “bankers look at the total business package when making financing decisions and the ability to repay a loan is determined by factors such as the business plan, cash flow projections, asset base, sales and marketplace analysis and business viability.”

The CBA notes that each case is different. The terms of the loans that banks provide are based on each merchant’s unique financial situation. “For example, if economic difficulties have a negative impact on a business’ financial situation, then the risk to the bank of lending to that business could increase,” they reveal, “In situations like this, the bank may require more security before providing the loan or the loan may be more expensive.”

Why should cash advances be considered as a funding alternative? As mentioned, the security required by banks by way of collateral isn’t necessary when accepting a merchant cash advance. As well, there is no interest rate charged to cash advance recipients. Instead, a one-time fee is added to the amount of the advance. It is paid back through a small percentage of future credit card and debit card sales.

As a result, our clients never experience any credit issues. They only make payments when they make sales. There is no such thing as being late with a payment and there is no increase to the amount they are required to pay back. These are some of the most significant differences between merchant cash advances and bank loans. On, it is suggested that our alternative source of business funding be considered.

“Consider factoring,” the site recommends, “Factoring is a finance method where a company sells its receivables at a discount to get cash up-front. It’s often used by companies with poor credit or by businesses such as apparel manufacturers, which have to fill orders long before they get paid.” And while the site goes on to note that the costs for merchant cash advances can be “expensive”, our alternative financing method offers what banks cannot.

What do merchant cash advances offer business owners that banks cannot? Our clients are often able to attain the money they need for their businesses within 24 hours! For more information on our merchant cash advance program or to speak with one of our licensed funding specialists to get a free, no obligation quote, simply call Synergy Merchants at 1-877-718-2026 or email us at

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