Why Businesses Should Choose Merchant Cash and Working Capital Loan

Almost three quarters of business leaders say they aren’t prepared for a cyberattack. As breaches become more common, business owners and IT experts must protect their businesses. These five best practices make securing your business online easier.

1. Educate Your Employees

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‍One of the best things that helps securing your business online is to train and educate your employees. With the right training, they’ll be able to use the right security techniques.

2. Stay Up to Date

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‍Another important step you can take towards online security is updating your software. Software developers are always testing and patching potential problems. These patches and updates help keep your business more secure.

3. Firewalls Secure Your Business

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‍A firewall protects your internal networks from outside threats. If you let employees bring their own devices, these security measures are even more important.

4. Limit Access to Your Network

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‍Another important step is limiting who has access to the Internet through your networks.Secure access by creating accounts and monitoring privileges. If you have a public network, be sure to change the password regularly. That way, cybercriminals can’t gain access through hijacked devices that have stored login information.

5. Invest in Website Security

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‍The last step to creating online security for your business is to secure your website. Invest in an SSL certificate. Make sure you’re compliant with standards such as those for the payment cards industry.If you’re not sure what security measures you can take, ask your host. Online security isn’t just your responsibility. The partners you work with should also take steps to protect your information and your business.If you require quick access to cash to support your business online – a merchant cash advance is the fastest and easiest way of getting the necessary funds. Talk to us to discover options on how we can help you secure and grow your business.

A Smarter Way for Canadian Small Businesses to Manage Cash Flow

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Running a small business in Canada is one of the most rewarding things a person can do. It is also one of the most financially demanding. You have likely experienced the particular tension of knowing your business is performing well on paper while watching your bank account tell a different story. A major client is 60 days past due. A seasonal lull has arrived ahead of schedule. A supplier is offering a bulk discount that expires before your next revenue cycle closes.

This is the cash gap, and it has nothing to do with how well you run your business. It is simply the reality of operating in an economy built on delayed payments, unpredictable demand, and tight margins. For restaurant owners managing weekend rushes and mid-week lulls, for contractors waiting on draws from general contractors, for retailers carrying seasonal inventory before sales materialize, this gap is not a sign of failure. It is a structural challenge that every business owner eventually confronts.

The question is not whether the gap will appear. The question is what tool you reach for when it does.

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Proactive Capital vs. Reactive Borrowing

There is a meaningful difference between borrowing out of desperation and borrowing as a deliberate business strategy. Most business owners have experienced the former: scrambling to cover payroll, negotiating with suppliers, or dipping into personal savings to keep operations moving. That kind of reactive borrowing is stressful, often expensive, and tends to happen at the worst possible time.

Proactive capital is different. It means having access to funds before the emergency arrives, using financing to take advantage of opportunities rather than to avoid collapse. It might look like purchasing inventory at a bulk discount, hiring a key employee ahead of a growth period, or bridging a gap between two large contracts so your team stays intact and your momentum stays strong.

This is where fast working capital becomes a genuine asset. When a business owner understands their financing options before they need them, they can move quickly and with confidence. They become the kind of operator who says yes to opportunity rather than the kind who watches it pass.

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How a Merchant Cash Advance Actually Works

Most introductions to merchant cash advances cover the basics: a lender provides a lump sum of capital, and repayment comes through a percentage of your daily credit and debit card sales. That structure is accurate, but it undersells one of the most important features of this product.

An MCA functions as a fluctuating safety net. Because repayments are tied directly to your daily sales volume, your payment obligations contract automatically when business slows down. During a quiet January, a restaurant remits less. During a slow construction season, a contractor's burden eases. When volume picks back up, repayments adjust accordingly. There is no fixed monthly payment sitting on your books demanding the same amount whether you had a record week or a difficult one.

This is fundamentally different from a term loan, where a fixed payment comes out regardless of how business is going. For industries with natural revenue cycles, that rigidity can be genuinely dangerous. The flexible structure of merchant cash advances removes that rigidity, replacing it with a repayment rhythm that breathes alongside your business.

The approval process is also designed with the realities of small business in mind. Where a traditional bank will scrutinize years of financial statements, credit scores, and collateral, an MCA provider focuses on your actual sales history. Your revenue tells the story that matters.

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Strategic Use Cases: When an MCA Makes the Most Sense

There are specific situations where a merchant cash advance is clearly the better tool compared to a conventional bank loan. Here are the scenarios where business owners consistently find it valuable:

• Seasonal inventory purchasing, where a retailer needs capital in October to stock for December but won't see revenue for six to eight weeks.
• Emergency equipment repair, when a piece of critical machinery fails and a multi-week bank approval process would mean lost contracts and idle staff.
• Bridging large contract gaps, particularly in construction and trades, where work is completed in one period but payment arrives weeks or months later.
• Capitalizing on a time-sensitive supplier discount that requires immediate payment and delivers significant long-term savings.
• Hiring and onboarding ahead of a known busy season, so the business is staffed and ready rather than scrambling mid-rush.

In each of these cases, speed and flexibility matter more than the cost comparison to a conventional loan. The opportunity cost of waiting is higher than the cost of the capital itself.

How Industry-Specific Businesses Use This Tool

In construction, the cash flow problem is almost universal. Materials need to be purchased, subcontractors need to be paid, and equipment needs to be maintained long before a draw schedule releases the next tranche of project funding. A merchant cash advance bridges that gap without requiring the collateral or credit profile that banks demand. Especially for construction companies, this kind of flexible capital is often the difference between taking on the next contract and turning it down.

In retail and food service, the challenges are different but equally real. Inventory decisions get made months in advance. Staffing ramps up before revenue does. A single slow season can destabilize months of careful planning. Having a capital partner who understands these cycles, and whose product is structured to accommodate them, changes how a business owner approaches their planning.

A Partnership Built for Resilience

2M7 is not simply a transaction. The goal is to function as a genuine partner in the financial health of your business, providing tools that help you maintain stability when the market becomes unpredictable and capture growth when the window opens.

Canadian small businesses deserve access to capital that was actually designed for the way they operate, not the way a spreadsheet imagines they operate. A merchant cash advance, used strategically and with clear intent, can be that tool.

Ready to Close Your Cash Gap?

If you are navigating a cash flow challenge or preparing for a growth opportunity and want to understand what funding might look like for your specific situation, the 2M7 team is ready to have that conversation. Reach out directly and speak with someone who understands the pressures you are managing.

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If you’re an entrepreneur seeking affordable funding options for your business without giving up equity or being burdened by debt, Revenue-Based Financing (RBF) might be just what you’re looking for! RBF has been steadily rising in popularity among growth-stage companies, and for good reason; the flexibility and unique blend of equity and debt financing is changing the game as it keeps you in control every step of the way.But that’s not all. A whole world of revenue-based avenues, such as Merchant Cash Advances and Factoring are entering the scene too!In this article, we will dive into the world of RBF, its alternatives, and provide you with valuable resources to help you make an informed decision about financing your business.

What is Revenue Based Financing?

Revenue Based Financing is a new type of funding that combines the convenience of a business loan with the peace of mind of flexible repayment options. Instead of a set monthly repayment, RBF allows your company to trade a percentage of sales for start-up capital. This allows you and the investor, as it provides the funds you need without tying up valuable equity or incurring debt. Your investor can rest easy knowing that they will receive regular payments (though the amounts may vary) under a legally binding contract.

HOW IT WORKS:

1. Find an Investor

Venture capital firms, dedicated RBF investors, or angel investors are a good place to start.

2. Pitch Your Business

Present your business plan, financials and growth projections to the investor. Show them your intended use of the funds and your company’s potential for generating consistent revenue.

3. Negotiate Terms

If the investor is interested, this is where you will negotiate the investment amount, percentage of revenue shared, repayment cap, and anything else that is pertinent to the deal.

4. Sign on the Dotted Line

Once the terms are agreed upon, both you and the investor sign a legally binding document that outlines the specifics of the deal.

5. Put the Funds to Use

Receive your funds (usually in a lump sum), and put them to work in marketing, product development, hiring, or other areas that will propel your company’s growth forward.

6. Monthly Payments

As your business starts generating revenue, repay your investor based on the agreed-upon monthly percentage.

7. The Repayment Cap

Once you have hit the predetermined repayment cap, your obligation to the investor is fulfilled, and you retain full control of your business.

RBF Alternative: Merchant Cash Advances

If your business is retail based or receives a high volume of revenue from credit card transactions (such as a restaurant), Merchant Cash Advances may be a more suitable financing option. With MCA, you exchange a percentage of future credit card sales for the lump sum investment.

HOW IT WORKS:

1. Apply for MCA

Once you find a reputable Merchant Cash Advance provider, apply for funding using the above-mentioned information for your business, as well as your credit card transaction history.

2. Receive the Funds

Again, usually a lump sum.

3. Repay Via Sales

MCA offers a big advantage in that you have quick access to the funds, and the flexibility of repayments being tied to sales, which eliminates the need for collateral. However, MCA’s can be more expensive than a traditional loan, and the deduction from your daily sales may impact your cash flow for a time.

RBT Alternative: Factoring

Factoring is also known as accounts receivable financing or invoice financing. It may work best for you if your business is facing cash flow issues due to slow-paying clients. With factoring, you sell your unpaid invoices to a factoring company at a discount, and they take care of collecting the funds.

HOW IT WORKS:

1. Find a Reputable Factoring Company

Preferably one that specializes in your industry.

2. Sell Your Unpaid Invoices to the Factoring Company at a Discounted Rate

Usually 70-90% of the invoice amount.

3. Get Paid Upfront

The Factoring company will subtract their fees and pay you the agreed upon amount right away.

4. Invoice Collection

Now it’s out of your hands, and the factoring company takes care of collecting the overdue amount from your clients!

5. Receive the Remaining Balance

Once the client pays, the Factoring Company will send you the remaining balance, minus their fees. Factoring eliminates the need for you to waste time chasing after clients to pay their invoices, and gives you quick access to the funds, relieving your financial stress. However, like merchant cash advances, factoring can be more expensive than a traditional loan.

Choosing the Right Financing Option

After reading this article and looking into the different financing options for your business, you hopefully have an idea of which option is best for your business. Ultimately though, the biggest factors to consider are:

• Your Business Industry
• Your Revenue Model
• Company Growth Stage
• Repayment Flexibility

Once you determine those, you can make the choice that works best to propel your business forward! Revenue Based Financing is getting more creative and attainable as the structure of our economy evolves. It really is becoming the financing option of the future.