We provide up to 125% of your average monthly sales, which can be deposited into your account as soon as the same day!

For example, if your business generates $25,000 in monthly credit/debit card sales, your business would be eligible for up to $31,250 as a merchant cash advance.

A “withholding percentage” would be automatically deducted from your daily transactions until your advance is fully repaid.

No interest, no hidden fees and your repayments are based on your sales.

How Merchant Cash Advances Work

The payments are simple, each day we collect a small % of your sales until the full amount is paid back. That way, we only get paid when you get paid. This makes a merchant cash advance a very cash flow friendly funding tool!

This % is the most important number in determining if this type of advance is right for your business. The withholding % ranges from 4% – 30% of your daily sales, and would vary depending on a variety of factors, including the amount of the cash advance, daily credit/debit card sales, type of company, industry, etc.

NOTE: The withholding % should not be confused with an interest rate. It is the number of your daily sales that gets collected and put towards paying your loan. It has nothing to do with your cost of capital.

There is a cost of money that gets determined as a factor rate. Meaning we assess a one-time cost based on the value of sales you might have in the future. Other than the factor fee, there is NO other costs on the funds.

The way a factor rate is calculated is as a multiplier of the amount you receive. The Factor rate will typically fall between 1.18 – 1.48.

Your advance amount is multiplied by the given factor rate to determine the total amount that must be paid back. For example, if you’re given $25,000 at a factor rate of 1.30, you’ll need to pay back a total of $32,500 (25,000 X 1.30 = 32,500).

The factor rate is determined based on a large number of factors including industry, Location, Years in business, Number of employees, amount of funds being provided Etc.

As a Merchant Lenders Canada – We use our propriety software to create a credit score for your business (Unrelated to traditional credit scores) and thus determine the factor rate for your business. The longer we work with your business and the more we understand your business’s particular needs, the more funds we will be able to give and the lower the factor rate will go.

Please keep in mind that a factor rate is different from an interest rate in that a factor rate doesn’t take time into consideration. Interest rates are calculated on an annualized basis. In the case of a factor rate instead of a fixed payment, the speed at which you pay back is based on your sales and performance of your business and therefore cannot be computed to an interest rate.

How Do We Differ

NO INTEREST

NO FIXED PAYMENTS

NO ACCRUING INTEREST

NO APPLICATION FEES

NO DOWN PAYMENT

NO LATE FEES

Quick overview of a merchant cash advance

A merchant cash advance is the provision of a set amount of money, determined by your existing credit/debit card payments.

Once the amount of the advance is accepted, a percentage (known as a withholding) will be proposed. This can range anywhere from 4% – 30% of your daily sales and is determined by a variety of factors. Note: the withholding percentage can vary based on whether your sales are higher or lower than normal, in order to assure you don’t pay more then you can afford.

MCA

Does my business qualify?

In order to qualify for a standard funding package, your business needs the minimum:

OPERATIONAL FOR A MINIMUM OF 90DAYS

ACCEPTS CREDIT/DEBIT CARDS (MINIMUM OF $10,000/MONTH)

LOCATED IN CANADA (EXCL. QUEBEC)

YOU HAVE NO OPEN BANKRUPTCIES (PERSONAL OR COMMERCIAL)

Speak to a specialist today!

Speak to one of our trained specialists to better understand what options we have for your business.

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