The Future of the MCA Industry

You have worked hard to start up your business. After perfecting your presentation, you have been able to raise some capital. Congratulations! Now what do you do? Make sure you don’t waste this opportunity to launch your business right. Here are five ways to prepare your business for capital raised.

1) Know your “runway”

Your business’s “runaway” is the amount of time your business has before it runs out of cash. First, you should look at your business’s monthly expenses and your capital raised and then, determine how much time you need in order to gain a steady stream of income. Ideally, you will want your business to have a six-month “runaway.” With six months’ worth of operating capital, you can deal with various disruptions that will come with operating a new business.

2) Use a budget management tool

One of the best ways to manage your business is to use a budget management tool, and with the right budget tool, you will be able to manage your expenses and identify opportunities to save money and run leaner. There are a number of top budget management tools that are designed around start-ups. Some of the top budget management tools include the following: Quicken - Quicken is great for smaller starter-ups with its easy-to-use software and interface. Centage - If you have more complex operations, then Centage is an ideal budget management software system. Lola - Lola is a great budget management tool if you are dealing with a number of expense report.

3) Secure the best prices from vendors

You want to make sure that your capital goes as far as it can possibly go. Therefore, you will want to control your costs. One of the best ways to control cost is to be able to get the best prices from your vendors. Be sure to get multiple quotes from as many vendors as possible. Also, if you are planning to use a vendor for the long term, try to negotiate better prices to help you stretch your capital.

4) Have a business plan

It’s a good idea to have a business plan. In fact, a business plan is like a road map that shows everyone in your company, as well as your investors, what is your plan to grow income and become profitable. If you have no experience writing up a business plan, don’t worry. There are a number of business plan templates that you can use to help you get started. Here are a couple of places where you can find business plan templates:

• LivePlan
• BusinessPlanTemplate
• Formprintr

5) Have an emergency or contingency plan

You want to make sure that your business has a plan for the unexpected. In fact, situations such as natural disasters or disruptions in manufacturing or inventory can spell disaster for your business. The best way to plan for an emergency is to set aside a portion of your capital raised and set it aside for emergency situations. That emergency money can save you in situations where you need money fast and you may not be able to raise further capital.

Getting your capital for your business going

Now that you have the capital that you need for your business, it is time to get going. Be sure to have a plan, set a budget, and watch your spending. Also, spend your business capital the right way and you will be well on your way to start-up success. If you require a merchant cash advance for your business, 2M7 Financial Solutions are here to help you out. Request a quote, we will be happy to assist you.

When the Tool Has to Fit the Business, Not the Other Way Around

At some point, almost every small business owner in Canada has looked at a business loan and felt the gap between what the bank wants and what their business actually looks like. Too short a history. Too small an ask. Too little collateral. Too much paperwork for too slow a process. The loan was designed for a different kind of business, and you were left to figure out something else.

That something else, for a growing number of Canadian business owners, is a merchant cash advance.

This is not about settling for a second option. In a lot of situations, a merchant cash advance is simply the better tool. Understanding why starts with understanding what most business loans are actually built for.

Business Loans Were Not Designed With You in Mind

Traditional business loans are structured around large capital needs, extended approval timelines, and borrowers who can prove years of consistent financial history. Many institutional lenders will not begin a conversation below a certain loan threshold, often $100,000 or more. If you need $30,000 to cover a cash flow gap between two contracts, or $50,000 to lock in a supplier discount before it expires, it helps to understand what alternatives to a business loan actually exist before assuming a traditional loan is your only path. 

The qualification requirements compound the problem. Banks want detailed business plans, multiple years of financial statements, personal guarantees, and often collateral. For a business that is six months old and generating solid monthly revenue, that history simply does not exist yet. The bank sees risk where the business owner sees momentum.

A merchant cash advance evaluates different signals entirely. Providers look at your actual sales volume, typically your credit and debit card transaction history, and use that to determine what you can reasonably receive and repay. The business you have built is the application. You are not being asked to prove what you might eventually become.

Repayment That Moves With Your Business

One of the most significant differences between a business loan and a merchant cash advance is how repayment works. A loan comes with a fixed monthly obligation. It does not matter whether November was your quietest month in three years or whether a large receivable is still outstanding. The payment is due, and it is the same number it was last month.

A merchant cash advance repays as a percentage of your daily sales. When business is strong, more gets remitted and the advance gets paid down faster. When business slows, the remittance drops accordingly. Your obligations shrink with your revenue and recover when revenue does.

For businesses that operate with any kind of seasonal pattern, this distinction is not a minor detail. A retailer carrying inventory into the holiday season, a contractor waiting on a draw schedule, a restaurant navigating the stretch between summer and fall: all of these businesses face months where a fixed loan payment creates real strain. The flexible structure of a merchant cash advance removes that strain, replacing it with a repayment rhythm that reflects how the business is actually performing.

‍

Accessible When You Are Just Getting Started

The businesses that most need capital are often the ones traditional lenders are least willing to fund. A business that has only been operating for a few months does not yet have the credit history or financial documentation that banks require. That does not mean the business is not viable. It means the track record has not accumulated yet.

Merchant cash advances are accessible to Canadian businesses that have been operating for as little as three months and are generating consistent monthly revenue. The bar is set around what you are doing now, not what you were doing two years ago. For newer businesses already gaining traction, that is a meaningful difference.

It also means that an MCA can be used proactively, before a cash gap turns into a crisis. Business owners who understand their financing options ahead of time are the ones who can move quickly when a real opportunity appears: hire before the busy season, lock in inventory pricing, or cover a short-term gap without pulling from personal funds or slowing operations down.

No Hidden Fees, No Runaround

One of the quieter frustrations with traditional lending is that the real cost of a loan often does not become clear until you are already committed to it. Fees buried in fine print, penalties for early repayment, and compounding interest structures make it difficult to know upfront what you are actually agreeing to.

2M7's approach is different, and that commitment is not just marketing. You see what you will pay before you sign, and that is all you pay. No prepayment penalties, no hidden fees, no financial gibberish. For a business owner trying to make a clear-eyed decision about capital, that transparency matters.

The Right Tool for the Right Moment

A business loan has its place. For large, long-horizon capital investments where extended repayment timelines make sense, it can be the right answer. But for the specific pressures most small businesses in Canada actually face, tight cash flow windows, seasonal cycles, growth that is moving faster than receivables, a merchant cash advance is built closer to the shape of the problem.

If you want to understand what an advance might look like for your situation, 2M7 is ready to walk through it with you.

‍

A broken excavator, an aging truck, or an unexpected opportunity to take on a larger contract can create an immediate need for capital. The problem is that equipment rarely fails or becomes available on a lender’s schedule.

With Canada’s economy coming off two consecutive quarters of contraction, preserving working capital has become even more important for many contractors considering a major equipment purchase.

For Canadian contractors, the right financing option often depends on two factors: how quickly the money is needed and how much flexibility the business requires. A traditional equipment loan may be the best fit for a planned purchase. When the need is urgent, however, revenue-based funding may provide faster access to the capital needed to keep work moving.

Equipment Loans vs. Merchant Cash Advances: What Is the Difference?

Traditional equipment financing is usually tied to the equipment being purchased. The lender evaluates the asset, the business, and the borrower’s credit profile, and the equipment typically serves as collateral. Because of this, the application may involve appraisals, purchase documents, and a more detailed approval process.

That structure can work well when the purchase is planned and there is time to compare terms. It may be less practical when a machine has failed mid-project or a good piece of used equipment is available for only a few days.

A merchant cash advance, or MCA, is not tied to a specific asset. It provides working capital based largely on the business’s revenue and operating history. There is no equipment appraisal, and the funds can generally be used where the business needs them most; a repair, a replacement, a down payment, or another project expense.

‍

When Revenue-Based Funding May Be Useful

Revenue-based funding is generally most useful when timing matters more than obtaining the lowest possible financing cost. Common examples include:

• Emergency repairs: A key piece of equipment breaks down during a job, and every day of downtime affects labour, scheduling, and project costs.
• A time-sensitive used-equipment purchase: A suitable machine becomes available at a good price, but the seller will not wait through a lengthy approval process.
• Preparing for a larger contract: A contractor needs another vehicle or machine before the new project begins generating revenue.
• Replacing equipment during peak season: Waiting until the off-season is not realistic because current jobs depend on the equipment being available now.

In each case, the decision is not simply about comparing rates. It is also about the cost of delay: lost work, idle crews, rental expenses, missed deadlines, or a contract the business cannot accept.

How Repayment Can Fit a Construction Business

Construction revenue is rarely perfectly even. Weather, permit delays, seasonal slowdowns, and gaps between projects can all affect monthly sales.

With some revenue-based funding structures, remittances rise and fall with sales rather than remaining fixed every month. That can give a contractor more breathing room during a slower period. A traditional loan, by contrast, usually requires the same scheduled payment regardless of current revenue. Because of this rigid structure, it is crucial to compare your financing options carefully before signing anything.

Other Ways Canadian Contractors Finance Equipment

An MCA is only one option. Contractors may also use equipment loans, leases, lines of credit, or leasing and asset-based financing. Each serves a different purpose.

• Equipment loan: Often best for a planned purchase when the business can provide documentation and wait for approval.
• Lease: May suit a business that wants to preserve cash or replace equipment regularly.
• Line of credit: Can provide ongoing access to working capital, although approval standards may be stricter.
• Merchant cash advance: May be useful when funding is needed quickly and repayment flexibility is important.

What to Compare Before Choosing

Before committing to any type of equipment funding, compare the full economics and not only the speed of approval or the size of each payment. Look at:

• The total amount to be repaid
• How often payments or remittances are collected
• Whether the amount changes with revenue
• Any collateral or personal-guarantee requirements
• The expected approval and funding timeline
• Early-payoff terms
• The revenue the equipment is expected to generate or protect

The cheapest option on paper is not always the least expensive in practice. If waiting several weeks means losing a project, paying for rentals, or leaving a crew idle, speed has a measurable value. The key is to weigh that value against the total cost of the funding.

‍

FAQs

Does 2M7 finance the equipment itself?

No. 2M7 provides working capital based on the business’s revenue rather than financing secured against a specific asset. The funds can be used for repairs, replacement equipment, a down payment, or other business needs.

Can I qualify if my credit is not strong?

Approval is based primarily on the business’s revenue and operating history, rather than on personal credit alone.

How quickly can funding be received?

Most approved applications receive a decision within one business day, and funds may be deposited within 24 hours of approval.

Is there a penalty for paying off early?

No. Depending on the agreement, an early payoff may reduce the remaining balance rather than trigger a penalty.

‍