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The Uses, Features, and Benefits of Merchant Cash Advances


Many merchants find it difficult to raise working capital

through conventional loans. Small businesses are nowadays

turning towards alternative lending options like merchant

cash advances in British Columbia, offered by many

leading financial institutions in Canada. The approval of

business cash advances in British Columbia largely

depends on the volume of credit card transactions a business

makes every month. It is the way to get quick and easy access

to funds based on future gross sales.

The use of merchant cash advance

Merchant cash advances in Ontario can be used for

virtually anything, such as

- Expand your business.

- Increase your product line.

- Meet unexpected expenses, such as new or replacement


- Advertise your business.

- Even personal needs


Eligibility criteria

The eligibility for merchant cash advances in Ontario may

also rely on the following criteria set forth by some Canadian


- Your company has headquarters in Canada.

- You have been in business for at least six months.

- Commercial premises are given preference over e-

commerce brands.

- A minimum level of sales

Once you get merchant cash advance in British Columbia

from a leading lender, a small amount is deducted from your

account on daily or weekly basis depending upon the specific

programme until the repayment amount is reached. There are

no fixed payments, fixed pay off date and no bill paying

hassles involved in it.

Documents required for availing merchant cash advance

in Ontario

In order to obtain merchant cash advance, you will be

required to provide the following

- Your business information including your company lease

- Government issued ID

- A void cheque

- Bank statements

- Your merchant ID number.

A lender may ask you for additional information if you need a

large sum of money. When you get approval for a merchant

cash advance in British Columbia from the lender, you will

enter into an agreement with your lender in which the lender

withholds a percentage of your daily credit card sales.

This is referred to as a

holdback and it will last until the advance is

fully paid. A business cash advance in Ontario isn't a loan

for a small business; rather, it's an advance on future credit

card transactions processed through the company's credit card

merchant account. In other words, businesses agree to sell a

share of future credit card sales to the business cash advance

provider at a discount. Merchant cash advances can be used

for a variety of purposes, including the purchase of new

equipment or the redesign of your business.

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