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
equipment.
- 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
lenders:
- 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.