Top 3 Small Business Risks to Avoid

As a celebration of Small Business Month, 2M7 Financial Solutions is proud to announce its team will be featuring its simple, flexible funding alternative at the 2022 Small Business Summit in Toronto to help more Canadian companies succeed. Since its inception, 2M7 has been dedicated to providing small business owners in Canada with a simpler and faster borrowing solution – providing the cashflow they need to run and grow their operations, even if they don’t qualify for traditional business loans.“

It’s getting exponentially harder for small business owners to qualify for loans from banks and other financial institutions, so 2M7 strives to provide the fastest and least complicated alternative to help support our Canadian entrepreneurs,” said Avi Bernstein, CEO of 2M7 Financial Solutions. “We believe it’s more important than ever to help small Canadian businesses grow, and our team is excited to take part in this year’s summit to meet the small business owners who are the true backbone of our economy.”

2M7 has helped thousands of businesses get funding to hire staff, buy inventory, repair equipment, expand to new locations, and more. Designed specifically for Canadian small business owners, 2M7’s merchant cash advance solution gets companies the funding they need – faster. Based around simple terms and flexible repayment structures, small businesses can easily get the cashflow they need, while having peace of mind that repayments are based on their month-to-month sales performance. Unlike banks, 2M7 provides its clients with fast funding, depositing funds directly into their bank accounts within 24-48 hours to invest almost immediately in their operations, however they see fit.“

In this fast-paced era, 2M7 has been proudly helping Canadian companies bring their businesses online to establish a global reach, as well as financing the digitalization of their processes in order to streamline operations, so our team is excited for this year’s summit theme of Embracing Digital Disruption,” said Avi. “With an increasingly competitive business landscape, and the ease of accessibility to a global market, we’re proud to give small businesses the competitive edge to grow even faster.”

To learn more about 2M7’s merchant cash advances for small businesses, please visit the 2M7 Financial team at booth #014 in the Metro Toronto Convention Centre, on Wednesday, October 26^th, or to see how much funding your business qualifies for, click here.

About the 2022 Small Business Summit

The Small Business Summit is an annual event in Toronto that celebrates Small Business Month and focuses on helping entrepreneurs grow and succeed. The summit will bring together start-ups, business owners, and experienced professionals for a day of networking. Hosted in Toronto, the third-largest tech hub in North America, the 2022 event will be themed “Embracing Digital Disruption” and feature major keynote speakers.

There are many funding options available for small business owners like you. You may be thinking of a business line of credit or even a business loan.Another, newer option is the merchant cash advance (MCA). This option is quickly gaining traction with business owners. Why? MCAs are often better than business loans.

A Merchant Cash Advance Fits Your Needs

Business loans are traditionally for large business purchases. Some lenders may not offer business loans unless they’re a certain size, such as $100,000 or more. If you need less than that, you may not be able to qualify for a loan.A merchant cash advance is different. It can be as big or as small as you need, giving your business more flexibility when it comes to funding. If you just need a little bit of cash to stay afloat, an MCA could be a great option.

MCAs Are Flexible

A merchant cash advance may also be the right choice because it’s flexible in terms of payment. MCAs are assessed on your future sales.The lender will look at your past sales and estimated future sales. They’ll then offer you a percentage of those sales as an advance on them.As you make sales, you pay back your advance. If your sales are higher, you can pay the advance off more quickly. If your sales are lower, then you don’t need to struggle to meet a certain minimum payment.This makes a merchant cash advance much easier for business owners like you to manage.

They’re Great for Startups

Many lenders require an extensive business history before they’ll extend a formal business loan. They want to see past proof of success.A merchant cash advance looks to the future, not the past. Even if you’ve only been in business a couple of months, you may be able to qualify for an advance.If you’re thinking about the future of your business funding, then it’s time to consider a merchant cash advance.

The great majority of small businesses go under because of cash flow issues. You know the importance of cash flow for that reason. That doesn’t mean you don’t face seasonal cash crunches.Seasonal cash flow struggles are quite common, even among established businesses. You can take the strain off by employing these five effective methods of solving cash flow challenges.

Know Your Problem Seasons

The first step in combating cash flow challenges is know your problem seasons. For seasonal businesses, this may be obvious. If you run a golf course, you might find cash flow tightens up during the winter. If, by contrast, you have a ski club, then winter could be boom season for you.Knowing when you’re most likely to run into trouble can help you plan for those dry spells more effectively.

Shift the Timing of Financial Commitments

Once you know when your cash crunches are most likely to happen, you can work on scheduling around them. Try to shift any major financial commitments to other times of the year.This might include adjusting when you order stock or how you organize your tax year. A golf course may not want to make a major tax payment at the end of April, because funds are already tight.You may not be able to move every financial commitment, and that’s fine. By shifting some earlier or later in the year, though, you can make all your obligations easier to manage.

Offer Incentives for Customers to Pay Early

Another tip for meeting seasonal cash flow challenges is to entice customers to pay early. If you invoice your customers, you could offer them a discount if they pay before the indicated due date.You may encourage prepayment or even down payments. For example, if you run a mattress shop, then you could ask people to put a down payment on their purchase.You can make this a seasonal offer and encourage customers to “buy ahead.” With more money flowing in, you’ll have an easier time managing your cash flow.

Get a Merchant Cash Advance

Sometimes, the answer to cash flow challenges is credit. That’s particularly true of seasonal cash crunches since they’re usually temporary in nature.A merchant cash advance is one of the better choices you have to manage seasonal cash flow. With one, you get the cash you need against expected future sales. As sales take place, you’ll pay back the advance.

Diversify Your Business

One of the best ways to solve seasonal cash flow issues is to diversify the business. If you run a golf course, you might also operate a banquet hall. Acting as a wedding venue can keep cash flowing, even during the winter season.If you face seasonal challenges, think about the ways in which you can diversify and offer more to your clients all year long.

Get a Helping Hand with an MCA

If you’re feeling pinched, it might be time to get a merchant cash advance. Get in touch with the experts and discover what the right financing option can do for your business.