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Looking for Small Business Financing In Canada ? – Consider A Merchant Cash Advance Finance Strategy

Guest post by: Stan Prokop

Article Overview: Information on on the merchant cash advance Canada program and how this type of financing generates cash flow and working capital as an alternative to traditional bank financing.

Looking for Small Business Financing In Canada ? – Consider A Merchant Cash Advance Finance Strategy

Could merchant cash advance financing help your firm? The dramatic rise of small business financing in sales and credit card financing ( by the way, Canada's largest corporations use this tool also!) is simply a factor of companies such as yours wanting to capitalize on the working capital and cash flow that is, in effect, locked up in current and future sales opportunities .

It doesn't take rocket science for any business owner of financial manager to figure out that if his or her firm has investments in sales and receivables and inventory then those assets, typically called ' current assets' requires financing in some form. Of course you can ' self finance ' - meaning simply wait for your inventory to turn into receivables, and then wait probably even longer for A/R to turn into cash. But, doing that forces you to give up on sales opportunities and challenges the very core of your financial health, given that we all agree cash flow is king.

If you are fortunate enough to be financing via a Canadian chartered bank you are of course familiar with ' collateral '- our banks do a great job of explaining that to you! Why don't you use your own firm's collateral, its assets and future sales and monetize that into cash.

Clients are often fairly clear on the benefits of merchant cash financing . . What they don't seem to have the best handle on is how it works.One you have such a facility set up it quite frankly is one of the easiest and quickest ways to unlock cash flow and working capital on a daily, weekly, or monthly basis. The power to choose your timeframes remains with yourself. And by the way, you only pay for the financing you are using. Let's get back though, to how it works.

As your firm generates sales you those submit to your merchant finance firm .

Merchant t advance funds are made at time of approval - Funds are wired, or sent to you, that same day into your account. Didn't you just feel your cash flow being totally unlocked and flowing?!

Monthly fees are in the 1.5-3% . Isn't that expensive for small business financing., ask our clients.

Absolutely, positively maybe, but we actually don't think it is. That is because all in rates from your bank when you total up all the fees, services, standby fees etc often total in the 11-12% range , not the 6% or 7% you think you are getting .

And furthermore, if you take the huge amount of cash you just receive and use it to purchase more efficiently, or takes discounts on supplier invoice payments you make your total cost of capital goes down . And, another point, if you are in a competitive environment, (who isn't) does your ability to have unlimited cash flow put you steps ahead of your competition? We think it does.

There are a number of ways to finance your business. If your firm has proven historical sales and receivables and you are challenged by the timing in which money flows through your business then consider the benefits of merchant advance cash flow financing.

Speak to a trusted, credible, and experienced business advisor on this popular financing tool for small business financing in Canada.

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Article Tags: advance finance, merchant cash advance Canada, small business financing, working capital



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