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
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 program 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.