Top 3 Small Business Risks to Avoid

Starting a new business can be an exciting and exhilarating experience, but sometimes small business owners get caught up wearing too many hats that they stumble into common business pitfalls. Avoid risks in your organization by learning the top small business threats.

Lack of Legal Expertise

Smaller businesses may not have the in-house legal expertise to read over contracts and consistently ensure legal compliance. Whether you decide to hire someone with legal experience or find an outsourced partner, small business owners should always feel confident they are protected against legal action.

Liability Concerns (Personal and Business)

Small business owners have to consider all the types of insurance they might need. From personal liability insurance to cyber insurance and home-based business insurance, there are unique insurance risks small businesses face that shouldn’t be overlooked. Without proper insurance, one unforeseen accident could sink your business before you have the time to grow it.

Unforeseen Interruptions

No matter how well you plan, something is going to go wrong. Whether it’s a cash flow gap, unexpected work delay, or a flood, there will eventually come a time when you will need additional funding or capital to get through the interruption. While a business loan might first come to mind, consider a merchant cash advance to get funding faster.If you are looking for an alternative funding solution made for small businesses, consider how a merchant cash advance can help you get back on track. Talk to one of our experts today.

2M7 Financial Solutions is honoured to be featured as a leading merchant cash advance provider in the 2022 Canada FinTech Lending Study, organized by Smarter Loans, which offers insights into the state of the industry and emerging trends. According to the study, the primary concerns for borrowers were interest rates and loan terms, with 40% ranking these as their top priorities. This indicates that financing needs are rapidly evolving – which is particularly true for Canadian businesses.

However, a shift in the financial landscape has created unique challenges for small and medium businesses in getting approved for loans, and the digital credit score algorithms used by traditional lending sources such as banks have made it increasingly more difficult to secure small business financing. Therefore, 2M7 has been stepping up to support Canadian businesses with a lending alternative – providing faster and easier access to the working capital they need, and offering flexible repayment terms to help maintain a positive cashflow during these challenging times.“

We are directly supporting the economic recovery and are working tirelessly to help Canadian companies prosper during these times,” said Avi Bernstein, CEO of 2M7 Financial Solutions. “Right now, more than ever, small and medium businesses need more accessible funding options to grow their businesses, and 2M7 is eager to be a part of the journey alongside them. We love to see our clients succeed and are committed to supporting their growth, just as any good partner should.”

With a 97% approval rate, 2M7 Financial Solutions is delivering on its mission to fund every Canadian business that needs financing. Using a proprietary algorithm to evaluate risk and determine credit worthiness, 2M7 is able to fund businesses that might not otherwise qualify for a traditional loan. Furthermore, the innovative assessment process gets businesses approved faster, with funds deposited directly into their bank accounts within 24-48 hours – delivering a solution to the simplified application process and rapid access to funds that were rated among the priorities for borrowers in the 2022 FinTech study.

About 2M7 Financial Solutions

‍2M7 strives to provide a unique financing solution that is in line with the demands of today’s emerging industry trends in order to create a seamless funding and repayment experience. As the industry continues to evolve, 2M7 remains at the forefront of the innovative technologies and processes that are transforming the Canadian financial industry, providing solutions that better meet the needs of Canadian businesses.

You’ve done your research, and you’re convinced a merchant cash advance is a great opportunity for your business. You can get a flexible funding solution to help you cover essential business costs or even expansion. Better yet, you can quickly access the funds you need with flexible repayment terms. So, how do you get an MCA? Follow these steps and you’ll have the funding you need in no time.

Research Providers

Doing research should be your first step. There are plenty of lenders offering MCAs, but not all of them are created equal. Many of them do business online. This makes it easy to find information about where they operate and the kinds of businesses they support. Some specialize in working with small businesses, while others prefer working with large businesses. Some may have expertise in your industry. Always look for a provider who is upfront about their MCA program. Check customer reviews and testimonials. What do other business owners say about this lender?

Submit an Application

Once you’ve decided on a provider, it’s time to prepare your MCA application. Always review the lender’s specific requirements. The more complete and accurate your application, the faster the lender can approve you. You’ll need to provide:

• Government-issued ID, to prove your identity
• Your merchant ID number
• Recent bank statements
• A void cheque

Your merchant ID number allows the lender to check on your merchant account, giving them accurate information on your monthly sales. Your recent bank statements can also provide this information, as well as crucial information about cash flows. You’ll also need to provide a bank account number for your business. The business bank account is where your merchant cash advance will be deposited.

The Approval Process

The lender will approve your application within two business days. If your application is complete and accurate, the funds may arrive on within the same day. Always check what the lender will provide. Some lenders will offer up to 125 percent of your monthly sales. Next, they’ll send you an agreement. Read this over carefully, since it contains information about your repayment schedule, fees, and more. Some lenders post their general terms, including rates and fees, online. You can review them before you apply. If you’re unsure about the lender’s offer, don’t be afraid to contact them. For example, if you were hoping for more funds than they offered, you can discuss their rationale with them. Once you’re satisfied with the lender’s terms, your funds will be transferred to your bank account.

How Repayment Works

Your merchant cash advance provider should get in touch with your payments processor. They’ll set up direct deductions, which means repayment of your advance happens automatically. You can keep track of payments through your account with the provider. This makes the process perfectly transparent, and you’ll always know where you stand.

Get the Funds You Need Now

Ready to get a merchant cash advance for your business? You can get in touch with the experts for a free quote or apply now. The funds you need could be just a few clicks away.